Santa Clara University

Undergraduate Private Alternative Loans

Private Alternative Loans may be an important funding source for students who need more loan funds than the federal programs can provide. Terms of private alternative loans vary significantly. These loans may have higher rates than federal loans because the federal government does not guarantee them. They require a credit check and/or debt-to-income ratio check on the borrower and/or co-borrower. A co-borrower may be required; lower interest rates may be available to students who choose to have a co-borrower.

Before a dependent, undergraduate student borrows a private alternative loan, parents should consider applying for a Federal Direct PLUS Loan. In addition, the Financial Aid Office strongly encourage all students to complete the Free Application for Federal Student Aid (FAFSA) and consider borrowing federal loans prior to borrowing private alternative loans.

Santa Clara University wants students to compare lenders and make informed loan selection choices.

You must initiate the loan process with the lender you select. Applications may be available online at the lender's website or by contacting the lender by phone. Once the borrower's and/or co-borrower's credit is approved, Santa Clara University will receive a request from the lender to certify the loan. We will certify the loan for the lesser of the amount you request on your application or the maximum amount allowed by your financial aid budget (total cost minus other financial aid). Funds received will be applied first to your student account and then refunded to you in the event of a credit balance.

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