Financial Aid - Choosing an Alternative / Private Loan

Choosing a Alternative / Private Loan

Choosing a PLUS, Grad PLUS, and/or Alternative Loan.

PLUS loans and/or Alternative loans fill the 'gap' allowing you to borrow the difference between Federal financial aid and the true cost of an education. You can borrower up to 100% of your education costs, and pay for tuition, books, supplies, housing and more.

Interest rates will be based on you and your cosigner's credit history and are generally stated as an index, such as Prime or LIBOR, plus a margin. Banks, private lenders and other financial institutions offer alternative student loans.

You can typically choose to begin repaying your loan immediately, make interest only payments while you are in school, or defer all of your payments while you are in school. Any interest you defer will be capitalized (added to your balance) when you begin making your loan payments. Interest rates and fees can vary significantly between lenders. Many lenders also offer borrower benefits that can reduce the principal or interest on an alternative student loan. Be sure to look carefully at the terms and conditions when applying for a loan.

Different types of Alternative Loans:

Parent PLUS Loan - is a loan borrowed by a parent on behalf of a child to help pay for tuition and school related expenses at an eligible college or university. The student must be enrolled at least half time, and the parent must pass a credit check in order to receive this loan.

Grad PLUS Loan – is a low interest, federally backed student loan guaranteed by the U.S. Government. The Grad PLUS loan is a non-need credit based loan similar to a private student loan, but with the benefit of having a fixed interest rate and federal guarantee This loan is for Graduate and/or professional students only.

Alternative/Private Loan – are specialized education loans based on your credit history and income and should only be considered after all federal loans, grants and scholarships have been exhausted. Lenders typically give better terms for better credit history.

Seton Hall has partnered with ELM Select to provide our students with a vehicle to compare all Lenders that offer PLUS, Grad PLUS, and Alternative Loans.

Click the link below to utilize this service and find the best loan for you. https://www.elmselect.com/oll/SchoolLenderList/?schoolId=8410.
This process is for applying for a 2009-2010 academic year loan.