Alternative/Supplemental Loan Options

Private Educational Loans are commercial loans made by banks or other lenders to students. These loans are designed for students and offer rates and fees competitive to secured loans such as car loans or home mortgages. Private educational student loans are based on a student's overall credit profile. Your history of repayment on prior credit obligations and your current use of credit determine your eligibility and the terms offered to you under these programs. A co-signer is generally required.

The Undergraduate Financial Aid Office recommends that students first apply for financial aid by filing the Free Application for Federal Student Aid (FAFSA). Filing the FAFSA will automatically allow students to be considered for Federal Direct and Perkins Loans.  You will want to utilize all of your federal loan options before pursuing a private educational loan.

If you'd like to borrow a private educational loan you will need to apply with a lender.  There are many things to consider when choosing a lender for your private loan.  The link below provides information for the most frequently used private loan lenders by UST students based on historical borrowing data.  The information provided is listed alphabetically by lender name.  The lenders noted therein are not specifically endorsed by UST.  Furthermore, UST does not and cannot guarantee the lenders noted will provide the best borrower benefits to you.  Remember, UST will process a private loan from any lender you choose but it is your responsibility to research the options available to you.

Alternative/Supplemental Lender Information
 

Things to Consider When Researching Private Loan Lenders

The following is a summary of the information that may be helpful to parents and students when considering an private educational loan to help with student expenses not covered by federal aid.

Pay Attention to the Student Loan Landscape.  The student loan industry is currently in a dynamic state.  The industry has recently undergone major changes and will likely continue to change in reaction to the economic instability.  Pay close attention to notices lenders send you about their loan programs, interest rates, fees and repayment benefits.  Remember, the obligation to repay student loans rests entirely with the borrower (and cosigner, if applicable), not the school.  Please borrow responsibly.

Do Your Research.  Lenders compete for your business and each lender offers its borrowers different benefits in order to differentiate its loan products from others in the marketplace.  UST will process an alternative loan from any lender you choose.  The standard repayment term for most alternative loans is 10 years so it is in your best interest to take the time now to make sure the lender you choose will meet your needs.  If you already have a relationship with a given lender and are familiar with the products offered, that may be a good place to start.  However, with thousands of lenders participating in student loan programs, you have many options. 

Consider the Facts.  UST does not maintain or distribute a preferred lender list.  We believe it is in everyone's best interest for you to research lenders independently in order to determine which lender will best suit your needs.  

More things to consider when researching educational loan products/lenders...

Federal Direct Parent PLUS Loan or Private Educational Loan?

The decision of whether or not to borrow additional loans and which program to use is a difficult one for some families. Before making the decision, the Undergraduate Financial Aid Office encourages families to consider the differences between the Federal Direct Parent PLUS Loan and other private educational loans.

To apply for a Federal Direct Parent PLUS Loan, please complete a Federal Direct Parent PLUS Application/Credit Authorization form and return it to the Financial Aid Office. 

The forms above are in PDF format. If you do not have Adobe's Acrobat Reader, please click here.

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