home / types of aid / private alternative loans

Private Alternative Loans


Private alternative loans are serviced by agencies outside the University and typically require a credit check or income requirement.


Eligibility


To borrow a private alternative loan at ISU, the student must:

  1. Qualify based on credit score. In many cases, a co-signer may be needed.
     
  2. Verify that he or she is using the loan for educational purposes. In other words, the loan may not exceed ISU's cost of attendance.
     
  3. Sign disclosures for the Truth in Lending Act.
     
  4. Apply within 30 days of the end of the term.

How To Apply

  1. Find the loan with terms that best suit the student's (borrower's) needs.
     
  2. Apply online at the lender's website.
     
  3. Once the borrower is approved, the lender will forward the approved application to ISU for certification. ISU will certify that the student meets minimum enrollment criteria and academic standards as required by the lender.
     
  4. Complete a Self-Certification Form. The lender should provide the borrower with this form as well as the Application ID number.

    To complete the Self-Certification Form, the borrower will need to know the student's cost of attendance and estimated financial aid. The student can access this information on his or her MyISU Portal account by clicking the following:

     1. My Banner Self-Service Links
     2. Financial Aid tab
     3. Access My Award Information
     4. Award by Aid Year (select the current year); and
     5. Aid Overview

    If the student is not receiving financial aid, use the Cost of Attendance figures provided by the Office of Student Financial Aid.

The loan will require the borrower to specify the loan period with specific dates. See ISU’s academic calendar.


Amounts

Interest rates, rebates, origination fees, and payment terms vary by lender. Federal student loans generally have more favorable terms and conditions than private loans.


Disbursement of Funds

The Truth in Lending Act of 2010 requires that lenders establish a cancellation period between the final disbursement notification and the date that the actual funds are disbursed.

Hence, disbursement occurs at least 14-21 business days from the date of the application. In addition, some lenders require the institution to hold funds until 10 days before the start of the semester. Check with the lender for details.


Preferred Lenders

Indiana State University does not participate in any preferred lender arrangement. We recommend thoroughly researching private loan terms and details before borrowing. To assist with loan selection, please visit this site: Private Student Loans.


Truth in Lending Act Disclosures

Students borrowing any non-Federal loans (e.g., institutional or private loans) must sign and acknowledge disclosure forms acknowledging the specific terms of each loan and stating that the student is aware of lower cost Federal loan alternatives. The disclosure forms will be sent out by the lending institution when appropriate. Each disclosure form clearly states what steps the students must take next and in what timeframe those steps must be made.

Contact

Student Financial Aid
220 North 7th Street
150 Tirey Hall
Indiana State University
Contact Us