Alternative Education Loans
New Legislation
Effective February 2010, new legislation requires lenders to make
additional disclosures to borrowers of private loans. This will extend
the timeline for loan processing. Please allow an average of three weeks
for the processing of alternative educational loans.
The new regulations require students to complete a self-certification form as part of the application process and return that form to the lender. This form will ask for your cost of attendance and will also ask for your amount of financial assistance. Your financial assistance would be the total of all loans, grants, work study, waivers and scholarships as shown on your WINGS financial aid. DO NOT INCLUDE YOUR "OTHER LOAN ELIGIBILITY" AMOUNT AS FINANCIAL ASSISTANCE. In most cases the PLUS or Alt Loan estimate amount in WINGS will be the difference between your cost of attendance and accepted financial aid. This difference is what the form is looking for in order to determine your maximum loan eligibility. Each student may have a different Cost of Attendance but you can use the chart below as an estimate for purposes of this form.
2013-14 Estimated Cost
of Attendance for New Students
Wisconsin Resident: Undergrad
$18,300 / Graduate $18,980
Minnesota Resident: Undergrad $18,300/ Graduate
$19,350
Non-Resident: Undergrad $25,870 / Graduate
$28,110
Commuter (living with parents): Undergrad
$14,800 / Graduate $15,480
Alternative Loans
Students who need additional funds for education, beyond what
was awarded on their financial aid award letter, might consider
an alternative (or private) student loan. These loans are
private educational loans from a lender and are not guaranteed
by the federal government. Approval of an alternative loan is
based on creditworthiness. Most students will require a
co-signer.
Tips for Selecting a Co-Signer or Endorser
The student should file a Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal and state aid before applying for an alternative education loan.
Important information to consider before choosing an alternative loan:
1- Many alternative loans have a variable interest rate
which varies from lender to lender. Many reset the interest rate
quarterly.
2- There is usually no cap on how high the interest rate can go
for a variable interest rate loan.
3- Interest accrues the entire time the student is in school and in
their grace period. Only borrow what you need for the current academic
year and reapply if needed in later academic years.
4- Many lenders include origination and/or repayment fees.
5- The loan is in the student's name but usually a co-signer is
required. The co-signer bears equal responsibility for loan repayment.
6- Not all lenders offer deferments or forbearance options once the loan
has entered repayment.
7- If you choose an
alternative loan offered by a credit union, you may wish to contact the
credit union to confirm whether you must be a member of the credit union
to receive this loan. Some credit unions require a small deposit in
order to be a member (usually from $5 to $25). Others will automatically
make you a member with no deposit if you borrow a student loan through
them.
8- Contact the lender if you have questions.
Alternative Education Loans
Students may choose any lender for their private alternative loans.
Application procedures and information
about specific
alternative loans
Once you click on the link above, you will go through several pages of
information before coming to a list of lenders that students at UWL have
used in the past. You can click on up to 3 lenders and hit the compare button to
have a side by side comparison of the loans. Once you have chosen an
alternative loan, you can actually apply by choosing the "Apply Now"
button on the information page for that alternative loan.
The interest rate and fees that will be associated with the loan you
have chosen will be determined by the lender after a review of credit.
Most lenders will require a co-signer for an alternative loan.
Health Professions Alternative Loans
Certain private loans are only available to students who have been
ADMITTED to an approved allied health program (PT, PA, OT, RT,
NMT, NA, Clinical Lab Science).
Pre-professional majors do NOT qualify.
The UWL Financial Office will not be able to certify a health
professions loan for students not admitted to one of these programs.
Minnesota Student Educational Loan Fund
(SELF) Program
The Minnesota SELF Loan helps students who need assistance in paying for
education beyond high school. Loan eligibility is not based on need. To
be eligible for the SELF program, a student must be a Minnesota resident
who maintains satisfactory academic progress, is enrolled at least half
time in a degree seeking program and is attending an eligible
institution. In addition, the student must have a credit worthy
co-signer and not be delinquent or in default on a SELF or other
outstanding student loans.
Borrowers are required to pay interest quarterly while in school. After
graduating or leaving school the student enters repayment. The interest
rate charged to the borrower changes throughout the life of the loan,
and can change every three months. SELF Loan applicants are required to
complete
SELF Loan Entrance Loan Counseling.
For more information visit the Minnesota Higher Education Coordinating
Board,
www.selfloan.org.
Minnesota SELF Loan Annual Loan Limit:
Undergraduate $10,000 per grade level
Graduate $10,000 per year
Minnesota SELF Loan Cumulative Loan Limit:
Undergraduate $50,000
Graduate $70,000 including undergraduate SELF