Back To Previous
 
   
 

Financial Aid > Alternative Loan Application Process

 

Alternative Loans are a resource students may use after all federal and state scholarships and grants, institutional scholarships and grants, work-study programs, and federal loan programs (Stafford, Perkins and PLUS Loans) have been exhausted.  The following characteristics are the same for all alternative loan programs:

  • Private loans offered by a lending institution; carry none of the benefits of a federal student loan.
  • The student is the borrower.
  • Most lenders now require the borrower apply with a co-signer which may be the parent.
  • The interest rate is variable over the life of the loan and changes with the index (LIBOR or Prime Rate).
  • Interest accrues from the date of disbursement (Some lenders require interest payments while the student is in school.)
  • There may be Loan Origination Fees from 0% to 6%.
  • Each lender determines the credit requirements of their alternative loan program.
  • Each lender determines the borrowing limits of their alternative loan program.
  • Repayment periods may extend from 15 to 25 years dependent on the program.
  • Each lender offers different borrower incentives after the student enters repayment. 

 

How to Apply for an Alternative Loan

 

Step 1:  Select one of the lenders given on the Lender List , or you may choose any other lender who offers private alternative loans. 

 

Step 2:  Click on the link provided within the list to access and complete the loan application.

 

What Happens Next:

  • Your lender will notify the Office of Financial Aid after you have been preapproved for the loan, and after you have completed the application.
  • The Office of Financial Aid will certify your loan and transmit it for processing. If additional information is required, we will contact you.
  • The loan funds will be electronically disbursed to the College. 

 

Borrow Wisely

  • Consider student loans after you have researched all the sources of free financial aid, including scholarships, grants, and work-study.
  • Determine if a Federal PLUS Loan will work for your parent(s) before using an alternative loan. 
  • Borrow only the funds you need.  If an Alternative Loan is included on your Financial Aid Announcement, you are not required to borrow the full amount shown.
  • Review our page, "How Much to Borrow?"
  • If you have received an Alternative Loan or an Unsubsidized Federal Stafford Loan, try to make at least some interest payment while you are enrolled (or during your grace period) in order to reduce your total debt.
  • Tell your lender/servicer about changes that need to be made to your name, address, or telephone number and also about your withdrawal or your graduation from the College.  
  • Wise management of your loan will establish an excellent credit history.  To help insure all payments are made on time, consider setting up an automatic debit from your checking or savings account. 
  • Keep copies of all loan documents and correspondence in one place.

 

For More Information…

 

...about the loan process or other financial aid matters, please feel free to contact our office and speak with:

 

Margaret Alsaraf
Assistant Director of Financial Aid
alsaraf@lakeforest.edu
847-735-5015 (phone)
847-735-6271 (fax )

 


My To-Do List
Click to Close