Alternative/Private Student Loan


Important
All loan borrowers at LMU are required to complete the Free Application for Federal Student Aid (FAFSA). Although you may be approved by your lender to borrow an alternative (private) loan before submitting a FAFSA, LMU will not certify or disburse any loan funds until a FAFSA is completed. LMU does not prefer, recommend, promote, endorse or suggest any lenders. LMU will process loans from any eligible lender that a student selects.

Important Resources


International students may apply for private (non-government) loans if borrower applies with a credit-worthy U.S. citizen (or eligible non-citizen) as co-borrower. Private educational loans are also referred to as alternative loan.


What is an Alternative Loan?

This loan is a private loan in the student's name. A creditworthy co-signer is highly recommended to keep the loan fees and interest rate to a minimum. The student and co-borrower must be U.S. Citizen or Permanent Resident. International students are welcome to apply for this loan; however a creditworthy U.S. Citizen or Permanent Resident cosigner is required.

Although most lenders provide these loans based on at least half-time enrollment, there are a few lenders who will provide this loan to students enrolled less than half-time.

 

How much am I eligible to apply for?

You may borrow up to the cost of education minus any other financial aid received. However some lenders have a limit to the amount that you can borrow to help with loan indebtedness.

What is the interest rate on this loan?

The interest rate on this loan varies by lender and can depend on the creditworthiness of the student and their co-signer.

 

When do I pay the loan back?

Repayment on this loan will begin after you graduate or cease be enrolled at least half-time. Typically, you have 10 years to pay the loan back. There is no prepayment penalty so you can pay the loan pay earlier if you wish.

 

I am enrolled in LMU Extension Coursework.  Am I eligible to borrow an alternative loan?

Students enrolled in LMU Extension courses may only apply to borrow private (alternative) loans that do not require school certification.  Be sure to ask the lender you have selected prior to applying whether the loan you have selected meets this condition.

 

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