Private alternative loans are serviced by agencies outside the University and typically require a credit check or income
Please note that prospective borrowers may qualify for other Title IV assistance
including loans that may have more favorable terms and conditions than the
provisions of private alternative loans.
NEW: Use the FASTChoice Loan Selector to compare up to three lenders side-by-side, as well as learn about
interest rates and repayment requirements for our most common lenders.
To borrow a private alternative loan at ISU, the student must:
Qualify based on credit score. In many cases, a co-signer may be needed.
Verify that he or she is using the loan for educational purposes. In other words, the loan may not exceed ISU's cost of
Sign disclosures for the Truth in Lending Act.
Apply within 30 days of the end of the term.
How To Apply
Find the loan with terms that best suit the student's (borrower's) needs.
Apply online at the lender's website.
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.
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.
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.
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 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.
Student Financial Aid
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Indiana State University