Private Alternative Loans
Private alternative loans may be an option if you need to borrow additional funds after exhausting your federal loans, or you are not eligible for federal aid. These loans are credit-based and typically require that you apply with a credit-worthy co-signer for approval.
In accordance with New York State and Federal recommendations, we will not certify a private loan unless you have first applied for and accepted your eligible federal Stafford Loan(s).
Private loans accrue interest while you are in school and typically represent the most expensive form of college financing.
As such, we strongly encourage students and parents to consult with the Office of Student Financial Services prior to applying for an alternative education loan, to ensure that you have explored all other financing and payment options first.
Before applying for an alternative loan, here are some questions you should ask yourself when comparing lenders:
- What is the interest rate or what is the expected range of interest rates
- How often is interest on my loan calculated?
- How and when does my interest rate change?
- Are there any loan fees, and if so, are they added or subtracted from the loan amount?
- Is a cosigner required and how does that affect the interest rate?
- Can the cosigner be released from the loan and what is required to qualify?
- What are the penalties for missing a payment?
- What deferment or forbearance options are available?
- What borrower benefits/discounts are available and what is required to qualify?
- Can my loan be sold to another company, and if so, will the borrower benefits transfer?
- What are the minimum monthly payments?
- When does repayment begin?
- Can the loan be consolidated with other loans?
- How long is the repayment period and are there any early payment penalties?
- What is the total amount that you will have to repay over the life of the loan and what will the monthly payments be?
- How long do I have to repay the loan?
LIM College encourages students to compare lenders and to also use mainstream internet resources to search for and review lenders. The Office of Student Financial Services will certify a loan through any lender if you meet that lender’s eligibility criteria. The maximum loan amount is the cost of attendance minus any other financial aid.