Alternative Loans

Students, after exhausting all other aid avenues including federal loan eligibility, sometimes explore the use of non-federal educational loans. Collectively called alternative loans, these loan products may be available to assist a student who is not eligible for federal aid or when federal aid does not meet the financial need of the student.

Alternative educational loans require the student borrower to be credit-worthy or have a credit-worthy co-signer. They can assist with meeting your educational costs; however, these loans are not to be entered into lightly. In particular, students need to look ahead so as not to create an accumulated federal and non-federal loan debt that is unmanageable in repayment.

The FASTAlt Solutions Website can give you guidance on using an alternative loan. Note: A log in is required that will allow you to go to the site several times yet only do the counseling requirement once every 90 days. This log in does not obligate you to a loan.

CHOOSING AN ALTERNATIVE LOAN
Alternative loans processed at UC are limited to maintain strong service to students. The available loans provide a variety of options for borrowers. 

Student Financial Aid has worked with Great Lakes Higher Education Loan Services and our lender partners to provide FASTAlt Solutions. This site gives a prospective borrower general information on non-federal educational loans including repayment estimation calculators. It also allows for a side-by-side comparison of our lending partner alternative loan products.

The Student Financial Aid Office encourages students who wish to borrow alternative loans to first consider the loan product offered by their Stafford Loan lender (if the Stafford lender's product is listed). By continuing to use the same lender as your Stafford Loan, you will often be able to take advantage of combined billing during repayment. While full consolidation of the federal and non-federal loans is not possible, combined billing can coordinate your monthly repayments. Likewise, students should be discouraged from using multiple alternative loan products over their borrowing timeframe.

AMOUNT LIMITS & LOAN PERIODS
Alternative loans are not part of the federal aid process though lenders restrict their use based on federal aid regulations. In particular, regulations limit the amount of financial assistance a student can receive to the Student Financial Aid Office-determined cost of attendance budget. 

This budget is the tuition amount and an average allowance for housing, food, books and supplies, and other non-tuition, educational expenses. The total financial aid package – to include all types of federal and non-federal aid – must remain within the cost budget.

Also, it is important to clearly identify the timeframe for your alternative loan on the promissory note. Loans will generally be processed according to academic year timeframes. If you are borrowing for periods other than fall-winter-spring, you should alert Student Financial Aid prior to submitting your promissory note. This alert will ensure your loan is processed within eligibility for the timeframe desired.

Unlike federal loans using a master promissory note allowing continuous borrowing, alternative loans require a note to be completed with each new or increased borrowing. Promissory notes can be completed online with the lender, or the borrower can request that a paper note be sent to them. Completed notes are submitted to the lender -- not UC.

Once the note is received by the lender, a credit check occurs, and the prospective borrower is notified of the outcome. If the loan is credit-approved, UC's Student Financial Aid Office will also be informed and will certify the loan based on eligibility.

You can monitor the certification status of an approved loan since, after certified, the alternative loan will appear as part of your online award offer. Funds will then be disbursed based on the required schedule determined by your lender and UC.