Private Alternative Education Loans
Because private loans can prove to be quite costly for some borrowers, Financial Aid Services cautions students to consider all payment plan and federal loan options before applying for a private loan. For more information on the benefits of federal loans, please go to http://federalstudentaid.ed.gov/federalaidfirst/.
Private Alternative Education Loans are available to assist students who need additional educational financing after all other options are considered and/or exhausted. The student is the primary borrower of these loans but an eligible cosigner is generally required. The student and co-signer should be aware that if the student does not make payments or is late in making payments, the co-signer is fully responsible for the loan. Students may borrow up to the cost of attendance (tuition, fees, room, board, books, travel expenses, and miscellaneous expenses) minus any financial aid they are receiving (including other loans and work study).
Most private educational loan lenders offer fixed or variable interest rates. Variable rates can change with the market conditions. The actual interest rate a student receives is based on an evaluation of their credit as well as that of the cosigner, along with other criteria determined by the lender and varies from borrower to borrower and lender to lender.
Borrowers have the right to select any lender they choose. Preferred lenders have been selected based on competitive pricing, borrower benefits, and service to borrowers and the school. To understand why Moravian College picked these lenders, please read about the selection process.
Beginning February 14, 2010, as a result of federal regulation, banks/lenders must provide several disclosures and a Self-Certification Form to the borrower before the loan can be disbursed. The form is designed to remind students about other sources of financial assistance and federal loan options. The form seeks to collect from the student their cost of attendance and expected financial assistance at Moravian College. These new requirements will slow down the approval, certification, and disbursement process for all private loans. Please follow all instructions provided by your lender and respond to their requests for information in a timely manner so that your loan can be processed as quickly as possible. Be aware that private loans will take a minimum of 3 weeks to be approved and certified from the time of application. For any clarification of the process or required documents, you must contact your individual lender.
Federal regulations also require preferred lenders to annually provide schools with information regarding the private education loans that will be offered to the school's students. The Disclosure provides general information regarding rates, terms, cost examples, and eligibility requirements. A Loan Approval Disclosure Form will be provided with specific loan details after the application is approved. Rates may vary depending on the creditworthiness of the borrower. Please click here to view these disclosure statements.
How to Apply
As part of our efforts to provide students with affordable financing, Moravian College participates in Private Loan Marketplace, a resource that matches students to private loan lenders. By following the link above students can compare loan rates, total loan cost, and see monthly payment estimates for several lenders side by side to determine which lender can provide the best loan options. Since loan products are not “one size fits all” please use this resource with our lender list as well as other loan resources you are aware of to find the best loan for your financing needs.
It is the responsibility of each student and his/her family to evaluate the eligibility requirements, costs, and benefits associated with each lender and determine the best choice for them.