University of New England

Alternative Loans are privately-funded loans available to students who qualify, based on their credit history, sometimes in conjunction with a co-borrower.  These loans are deferred until at least six months from when the student ceases to be enrolled at least half time; interest will accrue while the student is enrolled.  The student may request an amount up to their cost of attendance minus all other financial aid.  The terms and conditions of the loan, to include total fees charged and interest rates, will vary based on the loan program chosen and the lender's evaluation of the borrower's credit.

If you are a student who has never borrowed an alternative loan, we recommend that you familiarize yourself with each program before making a selection. Please check with your lender for the most current information. If you are a returning student who has previously borrowed an alternative loan, we recommend that you continue to borrow through the same program-following this advice will prevent you from having more than one lender when you enter repayment. If your previous lender is not listed, and you wish to continue to use this lender for your alternative loan needs, please contact your lender or the UNE Financial Aid Office for assistance with obtaining an application. If you choose to finance your education using an alternative loan, please familiarize yourself with all terms and conditions before you make a lender selection.

Consider asking the following questions:

• Is a co-signer required? Is a co-signer option available if I do not qualify with my own credit?
• What is the interest rate? Is it capped?
• Will the lender capitalize accrued interest and, if so, when and how often?
• Are fees deducted from loan proceeds or added to the balance at time of repayment?
• Will my lender sell my loan to another agency/company? If so, will the terms change?
• Does my lender offer flexible repayment options?
• Will my lender offer any on-line repayment incentives?
• Does my lender offer a co-signer release option?

For your convience, UNE recommends the following Alternative Loan programs.  Students have the option of selecting from our recommended list, or making a different choice.  Please note, due to current financial market conditions, several lenders have either suspended offering Alternative Loans or have changed their loan terms and conditions.  The information listed on this website is subject to change as our office receives updates from lenders.

Click here to run a private loan comparison.

The following loan program is not included in the comparison tool listed above, but many of our medical students use this program.  It is important to compare different loan programs to determine which will be best for you.

Maine Medical Loan- MELA
Website
1-800-922-6352

Applying for an Alternative Loan
To apply for an Alternative Loan, students should complete both of the following steps:

1. Complete a UNE Alternative Loan Request Form.  The purpose of this form is to tell us how much funding you wish to borrow, your choice of lender, and how you want your funds distributed each semester.
2. Apply directly with your lender to complete your application and promissory note.  Once you have completed the application and promissory notw (on line or over the phone), and have been pre-approved by the lender, the lender will contact our office to certify your eligibility as a UNE student.  Allow two weeks for our office to certify your eligibility.

After your application is processed, the lender sends your loan proceeds directly to the UNE Student Accounts Office.  The UNE Financial Aid Office determines the disbursement schedule.  Funds will not disburse earlier than ten days prior to the start of a semester.  In general, it is usually less expensive in terms of interest rates and fees to apply for an alternative loan with a co-borrower even if the student qualifies for the loan on their own creditworthiness.