An alternative loan is a privately funded educational or personal loan which is not regulated by the Department of Education. You will find extensive variations when comparing the alternative loans. While many of these loans offer features similar to the federal loans, others do not.
When Would I Want To Get An Alternative Loan?
We highly recommend that you work with the Financial Aid Office to attempt to resolve any issues with your federal eligibility first, before considering an alternative loan.
You may investigate alternative loans when you have to borrow more money than the amount you've been awarded in the Federal Direct Student Loan Program. This may occur when you have borrowed your annual or lifetime limit on your Federal Stafford Loan and/or you have exhausted your credit-based Federal Grad PLUS options.
Types of Alternative Lenders
Fielding does not endorse any product or institution discussed here. We only offer information to help you. We are limited in our ability to assist you with these loans. You will need to communicate directly with your alternative loan provider.
Traditional Lenders
Traditional institutions, such as banks, private lenders and other financial institutions offer specialized education loans based on your credit history and income.
You will apply directly through the lender. You do not need to complete the FAFSA to begin the application process for private loans. After you apply with the lending institution, they will send the loan certification to Fielding for verification of your Cost of Education and for verification of your enrollment status.
People-to-people Lenders
People-to-people, also known as peer-to-peer, lending is done through internet sites set up to facilitate the distribution of funds from lenders to borrowers.
Online Marketplace web sites, such as Zopa, use a process similar to an auction in which the loan interest rate is determined. The final result of the auction is the match making between the lender, who has money to invest, and the student, who needs the financial support.
Family and Friends web sites, such as GreenNote, assist in reaching out to people who want to support you. The web-based organization formalizes the transaction by completing loan documentation and facilitating loan repayment later on.