All loan borrowers at LMU are encouraged to complete the Free Application for Federal Student Aid (FAFSA). Although a student may be approved by your lender to borrow an alternative loan, LMU will not certify or disburse any loan funds until they complete Alternative Loan Counseling with the Financial Aid Office. LMU does not prefer, recommend, promote, endorse or suggest any lenders. LMU will process loans from any eligible lender that a student selects.
Alternative loans* are credit-based loans offered by a variety of third-party lenders. These loans are borrowed by the student and require the student to have a satisfactory credit history or a creditworthy co-borrower.
Students may borrow up to their LMU cost of attendance, minus any other financial aid they receive. Loan fees, interest rates, and repayment terms vary by lender, so please review all application information very carefully.
*Also called Private Loans
Important Resources: Applying for a Loan
Alternative Loan Application Process
Alternative Loan Counseling
Alternative Loan Counseling helps promote responsible borrowing among students considering private financing options. It is an opportunity for the student borrower and the counselor to ensure that all forms of federal assistance have been considered, as well as to gather information about the terms and conditions of the loan.
When preparing to meet with a counselor the student should be prepared to answer specific questions regarding the loan. Students are expected to know the following terms of their loan:
- Name of lender
- interest rate
- fixed or variable interest rate
- repayment term
- repayment plan
- Amount borrowing
The LMU Financial Aid Office highly recommends students read and have the Application and Solicitation Disclosure Form provided by the lender readily available to help facilitate the counseling process. Upon counseling completion, students receive a copy of the completed form via their Lion email.
How will my loan funds disperse?
In general, alternative loan funds will be disbursed electronically to your student account, equally over the terms of enrollment (50% in the fall semester and 50% in the spring semester). During Alternative Loan Counseling you may request a different disbursement schedule and the Financial Aid Office will make every effort to accommodate your request.
When do I pay the loan back?
Rules for repayment vary from lender to lender. Some lenders may defer repayment during periods of enrollment, but it is best to verify repayment terms directly with your lender. Please note that private loans are not eligible for Federal Direct Consolidation, Federal Income-Based Repayment plans, or Federal Economic Hardship Deferments.