Alternative Financing Options-Graduate Students
What are Alternative Loans?

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.

Selecting an Alternative Loan Program

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?

Due to continuing changes within the student loan industry, our office will no longer be recommending specific lender products for private / alternative loans.  Instead, we recommend that students and families use the link listed below to search for private / alternative loan products that best suit their needs:

Search for private student loans

All students are strongly encouraged to apply for and exhaust all sources of federal, state, and institutional aid, including federal student loans, before applying for private / alternative loans.   To apply for these sources of funding, you must complete the Free Application for Federal Student Aid (FAFSA).

 

 

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 note (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 disbursements 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.


 

   
       

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