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ALTERNATIVE Loan Information

An Alternative loan is an educational loan through a lender with no ties to the federal government or Valdosta State University that allows students to borrow additional funds after federal student loans have been exhausted.

There are many private lenders that offer alternative loans.

  • The choice of which lender to borrow from is a decision that the student must make.
  • The Office of Student Financial Aid will certify an alternative loan from any lender the student chooses.
  • Students should always consider the Federal Loan Programs first.

For a List of some Alternative Lenders and their loan programs you can use on-line loan finder at the link below:

Once you get to the Loan Finder uncheck the Consolidation Loans, Stafford Loans and Plus Loans to see a list of Private/Alternative Loans.  Enter your Degree and/or Major to find appropriate loan programs. Click on the name under the loan type to get to the lenders web site for additional information and on-line applications.

http://studentloanlistings.com/Default.aspx

Alternative loan programs differ from Federal Direct Loans in several important ways.

  • Interest rates are normally variable rates that change on a quarterly basis. Students are responsible for researching the terms and conditions of all loan programs.
  • Loan and interest rates are based on credit approval and approval is not guaranteed.
  • Valdosta State University is not involved in the credit decisions or denials for these loans. Questions are best addressed to the individual lender.
  • Loans are not federally guaranteed; therefore, they do not have the same deferment, cancellation and consolidation benefits.

The entire alternative loan process can take up to six weeks.

  • The amount a student may apply for is limited to their cost of attendance minus any other financial aid they are receiving.
  • Students should review all lenders and determine which loan program best meets their needs.
  • Please keep in mind that some alternative loan lenders require students be enrolled at least half-time or require that they meet reasonable academic progress.
  • As you compare lenders, be sure to identify educational loan products.
  • Not all lenders provide loans for students who are enrolled less than half-time, not in a degree seeking program or not making Satisfactory Academic Progress.  You should select lenders who provide loans for students in your situation.
  • After choosing a lender, a student should contact the lender directly to apply for the loan. Most lenders will have an on-line application process.
  • While we encourage students to compare lenders, students should only apply with one lender.
  • Lenders may require supporting income and employment documentation and/or co-signer.
  • Once the lender has approved the loan, a certification request will be sent to Valdosta State University. It can take up to 14 business days from the date the certification request was received until the loan is actually certified.
  • Once Valdosta State University receives the loan, the Office of Financial Aid and the Office of Student Accounts will process the disbursement and issue a refund if one is due.