Private / Alternative Loans
Information on Private/Alternative Loans
What should be determined before deciding on a private loan?
- What is the interest rate and on what is the interest rate based?
- When does repayment begin?
- Can principal and interest be deferred?
- When is the interest capitalized?
- What fees are associated with the loan?
- Do I have to be degree-seeking to receive the loan?
- Is Satisfactory Academic Progress required?
- In how many hours do I need to enroll to receive the loan?
- Are there interest rate reductions or other incentives for borrowers who make their payments on time?
- Can my co-signer be released from the loan?
How do I select a private loan lender?
You should find a lender that best fits your needs. We have provided the following links as a courtesy for our students. Neither is a definitive list of lenders that offer student loans and you are not required to choose a lender from either list.
This site contains lenders that Emporia State University students have used within the last three years. It gives you options to compare several lenders at one time to determine which one offers the options you determined you need from the list at the top of this page. Once you choose a lender, you will apply through their website. Again, you are not limited to the lenders on this list and we will not refuse certification of a loan from a lender not on the list. ESU does not endorse any of these lenders and receives no compensation or benefit from listing these lenders.
Credible is on online tool that allows students to compare personalized loans from multiple lenders. Students can analyze prequalified rates, terms, and eligibility rules through this site. Credible is not a lender or bank. This is not a definitive list of lenders, and you are not limited to choosing one of these lenders. Again, you should choose the lender that offers all of the options and terms that you need. ESU does not endorse any of these lenders and receives no compensation or benefit from listing these lenders, or from Credible.
What type of loan is the best for me?
| Federal Stafford Loans | Private Student Educational Loan | Private Sponsor Education Loan | |
|---|---|---|---|
| Primary Borrower | Student | Student | Parent or other eligible non-student person |
| Credit Check Required | No | Yes | Yes |
| Co-signer Required | No | No, but might be necessary if student has little to no credit history | No, but might be necessary if primary borrower isn't eligible on their own |
| Co-signer Release Option | N/A | Varies by lender | Varies by lender |
| Interest Rate | Undergraduate students: 3.73% for loans disbursed after July 1, 2021 Graduate students: 5.28% for loans disbursed after July 1, 2021 |
Varies; dependent upon credit history, ability to repay, and whether the interest rate is fixed or variable | Varies; dependent upon credit history, ability to repay, and whether the interest rate is fixed or variable |
| Origination Fees | 1.057% for loans disbursed after October 1, 2020 | Varies by lender; most are 0% | Varies by lender; most are 0% |
| Payments While In School | Not required as long as enrolled half-time or greater each term | Varies by lender; options include full deferment, interest only payments, full payments, or smaller monthly payments | Varies by lender; options include interest only payments, full payments, or smaller monthly payments |
| Repayment Terms | 10 - 25 years | Varies by lender; typically 5 - 20 years | Varies by lender; typically 5 - 15 years |
| Payment Flexibility | May be eligible for income-driven repayment, consolidation, and forgiveness | Varies by lender | Varies by lender |
| Responsibility To Pay | Student | Student and co-signer (if applicable) | Borrower of loan and co-signer (if applicable) |
| Loan Limits | Dependent upon several factors | Generally up to 100% of the school certified cost of attendance minus other aid received. Lenders may have different loan limits for different loan programs. | Varies by lender; may or may not require school-certification. Some lenders may have minimum or maximum loan amounts. |
| Minimum Enrollment Status | At least half-time each term | Varies by lender; some lenders offer loans to students who are less-than half-time | Varies by lender; some offer loans to borrowers who have students who are attending less-than half-time |
| Application Process | Studentaid.gov/fafsa Also requires Entrance Counseling and MPN |
Online with lender; contact lender for other options | Online with lender; contact lender for other options |
| FAFSA Required | Yes | No | No |
| Borrower Benefits | .25 percentage point interest rate reduction for automatic payments | Varies by lender | Varies by lender |
| Death and Disability Forgiveness | Yes | Varies by lender | Varies by lender |
| Ability to Consolidate Through Department of Education | Yes | No | No |
| Option For Denied Loans | Contact Financial Aid Office | Student can apply with a different co-signer | Varies by lender; may be able to apply with a different co-signer |
ESU’s Financial Aid, Scholarships, & Veterans Services is providing the above information as a courtesy. Outside of maintaining our website, ESU does not promote, validate, or maintain the websites listed. URL addresses and website contents frequently change. The URL addresses listed were accessible as of June 12, 2020. A website appearing here does not necessarily imply that ESU agrees with the material contained on or linked to the websites.