Alternative Loans are private educational loans that are available to students in need of additional assistance after all other types of funding have been exhausted. You, the student, will be the borrower of the Alternative Loan; however, you may need a credit-worthy individual to act as a co-signer.
How much am I eligible to borrow?
Although some lenders limit the amount that you may borrow annually, the general rule of thumb is that you may borrow up to the cost of attendance less any other financial aid you may be receiving. For example, the cost of attendance is $20,000 and you are receiving $8,000 in other aid, you could borrow up to $12,000, as long as your lender approves you for that amount. We recommend that you be a savvy borrower and borrow only what you need to cover your education-related expenses. This is a loan that must be repaid with interest, after all!
When does repayment begin?
Repayment terms and conditions also vary from lender to lender. Some lenders offer delayed repayment options, while others require interest only or principal and interest payments while the student is enrolled in school. Please be advised that the interest on delayed repayment options begins to accrue immediately, so you should try to make payments on your Alternative Loan if possible.
How do I choose a lender?
You are able to apply for a loan through any lender that offers alternative loans. When choosing a lender, you should do your homework and choose a lender that best suits your needs as a borrower. You may find FAST CHOICE to be a useful tool in helping you make your decision. FAST CHOICE offers loan comparisons, loan counseling and debt management resources, and borrowing options to fit your individual need. Neither the University of Pittsburgh at Johnstown nor the Financial Aid Office endorse, promote, or recommend lenders or any loan products. Please note that Federal Credit Unions generally require membership to be eligible for their loan product.
How do I apply for an Alternative Loan?
We anticipate approximately four to six weeks for complete loan processing. To ensure the timely delivery of your alternative loan, please apply early and respond quickly to any requests from your lender. The application process is outlined below.
1. Complete and submit an alternative loan application to the lender of your choice. Ensure all necessary information is included, such as co-signer information, proof of income, etc.
2. The lender will perform a credit check and determine your eligibility. If all necessary paperwork is complete and the borrower and co-signer meet the credit requirement, the lender approves the loan; if not, the lender may request additional information from the borrower or co-signer.
3. After the borrower actively accepts the loan, the lender notifies Pitt-Johnstown's Financial Aid Office to complete school certification.
4. After school certification is completed, the lender sends the Final Disclosure Statement to you.
5. The lender disburses the loan to Pitt-Johnstown after the Final Disclosure cancellation period has expired.