What is an Alternative Loan?
There are times when Federal Aid is not enough to cover the cost of tuition, housing, books and other essentials to complete your education. In those cases, alternative borrowing could fill the need. Alternative loans are non-federal loans used to supplement financial aid for credit worthy students and their families. Most students are required to secure a credit worthy co-borrower to secure the loan at the best interest rate.
Lawrence Tech recommends that a student complete the FAFSA first, consider the Federal Direct Loan and/or Federal Direct PLUS loan offered which may have more attractive borrower benefits than most alternative loans.
Parents of dependent students and graduate students may want to consider the Federal Direct PLUS Loan
which also would have a lower interest rate and more attractive borrower benefits than most alternative loans. In the event the PLUS (for dependent students only) is denied for credit reasons, the student would have the option to apply for an additional Federal Direct Unsubsidized loan as replacement. We recommend exhausting federal student loan options prior to seeking an alternative loan.
How Much Can a Student Borrow?
There are limits to what a student can request in alternative loan funding. The Office of Financial Aid will determine the maximum amount you can borrow based on your cost and Federal/State aid accepted.
Can LTU Recommend an Alternative Lender?
The Office of Financial Aid encourages students and parents to research additional options to find the most beneficial loan program to fit their need. Many lending institutions offer alternative lending and each loan program's terms and conditions for applying and repayment vary. Be sure to do your research carefully when selecting to borrow from any alternative loan program.
After selecting a lender what do I need to do?
In addition to completing the loan application you are required to obtain a copy of the Self-Certification form from the private educational loan lender and submit it to the lender.
(Lawrence Tech does not have a list of recommended lenders, however the following lenders have provided loans to Lawrence Tech students in the past.)CharterOne TruFit Student Loan:www.charterone.com/trufitstudentloan
SunTrust Bank – Custom Choice Loan (Fixed and Variable rates)