All loan borrowers are encouraged to complete the Free Application for Federal Student Aid (FAFSA). Although a student may be approved by their lender to borrow an alternative loan, LMU Financial Aid will not certify or disburse any loan funds until they complete Alternative Loan Counseling. LMU Financial Aid does not prefer, recommend, promote, endorse, or suggest any lenders. LMU Financial Aid will process loans from any eligible lender that a student selects.
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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.
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Applying for a Loan
Alternative Loan Application Process
1. Apply for Loan
- Go to our Alternative Loan Portal to compare and select the best loan for your situation.
- Complete the Self-certification form provided by the lender.
2. Get a Cosigner
- Do you need a cosigner?
- Discuss Loan details with your cosigner.
- Complete the application together.
3. Alternative Loan counseling
- Monitor your PROWL account via MyLMU.
- Complete Alternative Loan Counseling form with help of the Disclosure and Solicitation form.
- Submit to Secure Document Upload.
4. Certification and Disbursement
- Financial Aid notifies the lender of the approved loan amount in 3-5 business days.
- Once certified, the loan will disburse in 10-15 business days.
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You may borrow up to the LMU 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.
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The interest rate on this loan varies by lender and can depend on the creditworthiness of the student and their co-signer.
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A co-signer is an individual who promises to repay the loan if the student borrower fails to do so. Here are a few tips to keep in mind when requesting a co-signer:
- Review the reasons for needing the loan with your potential co-signer.
- Make sure that your potential co-signer understands what is expected of him/her.
- Discuss when payments will begin.
- Complete the loan application together.
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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).
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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.