Alternative student loans are offered by banks or lending institutions to help students and parents bridge the gap between the cost of education and the amount of financial aid received. These are private supplemental loans that are NOT guaranteed by the federal government. Terms and conditions can vary according to specific lender guidelines.

Non-federal education loans should be explored only after students have utilized their federal education loan eligibility.  The SRU Financial Aid Office can help you understand your eligibility and loan options.

Non-federal alternative loans can vary widely in their terms and conditions (such as interest rates, repayment terms, and fees).  General characteristics of alternative loans are:

•  borrower must be credit-worthy or have a credit-worthy co-signer. . Since a credit check is likely, not everyone is approved for an alternative loan

•  interest rates are variable, and based on the credit rating of the borrower/co-signer; some may be as high as 18% - 21%

•  variations in amounts and types of fees; fees vary and can be as high as 9%

Before choosing to borrow through a non-federal alternative loan option, dependent students and their families should click here to view a comparison between non-federal Alternative Loans and the Federal Parent PLUS Loan. Graduate students can click here to see a similar list comparing the non-federal Alternative Loans with the Federal Graduate PLUS Loan.

Non-Federal Alternative Loan Recommended Lender List 

It is important to remember that borrowers may choose any participating lender when borrowing through these loan programs.

How do I apply for an Alternative Loan?

Students should contact lenders directly about non-federal alternative loans. Students are permitted by law to choose any lender they wish for their educational cost needs.

Questions you should ask lenders when researching alternative loan programs:

• Does the loan have any front or back-end fees?

• What is the current interest rate and how often does it change?

• If the interest rate is based upon your credit score, what is the highest and lowest current rate?

• What is the highest possible interest rate? Alternative loan rates can increase because they are variable.

• Many lenders offer incentives so ask how you get them AND how can you lose them (for example, the loan is sold to another lender or you are late on a payment)?

• What is the interest rate difference if you have a co-signer?

• How many months will you be in repayment?

• When do you begin repayment?

• Is there any type of death and disability clause?

• Does the lender offer a co-signer release option? If so, how do you request the release and how many payments must occur.