Alternative Education Loans
Effective February 2010, new legislation requires lenders to make additional disclosures to borrowers of private loans. This will extend the timeline for loan processing. Please allow an average of three weeks for the processing of alternative educational loans.
The new regulations require students to complete a self-certification form as part of the application process and return that form to the lender. This form will ask for your cost of attendance and will also ask for your amount of financial assistance. Your financial assistance would be the total of all loans, grants, work study, waivers and scholarships as shown on your WINGS financial aid. DO NOT INCLUDE YOUR "OTHER LOAN ELIGIBILITY" AMOUNT AS FINANCIAL ASSISTANCE. In most cases the PLUS or Alt Loan estimate amount in WINGS will be the difference between your cost of attendance and accepted financial aid. This difference is what the form is looking for in order to determine your maximum loan eligibility. Each student may have a different Cost of Attendance but you can use the chart below as an estimate for purposes of this form.
2013-14 Estimated Cost
of Attendance for New Students
Wisconsin Resident: Undergrad $18,300 / Graduate $18,980
Minnesota Resident: Undergrad $18,300/ Graduate $19,350
Non-Resident: Undergrad $25,870 / Graduate $28,110
Commuter (living with parents): Undergrad $14,800 / Graduate $15,480
Students who need additional funds for education, beyond what was awarded on their financial aid award letter, might consider an alternative (or private) student loan. These loans are private educational loans from a lender and are not guaranteed by the federal government. Approval of an alternative loan is based on creditworthiness. Most students will require a co-signer. Tips for Selecting a Co-Signer or Endorser
The student should file a Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal and state aid before applying for an alternative education loan.
Important information to consider before choosing an alternative loan:
1- Many alternative loans have a variable interest rate
which varies from lender to lender. Many reset the interest rate
2- There is usually no cap on how high the interest rate can go for a variable interest rate loan.
3- Interest accrues the entire time the student is in school and in their grace period. Only borrow what you need for the current academic year and reapply if needed in later academic years.
4- Many lenders include origination and/or repayment fees.
5- The loan is in the student's name but usually a co-signer is required. The co-signer bears equal responsibility for loan repayment.
6- Not all lenders offer deferments or forbearance options once the loan has entered repayment.
7- If you choose an alternative loan offered by a credit union, you may wish to contact the credit union to confirm whether you must be a member of the credit union to receive this loan. Some credit unions require a small deposit in order to be a member (usually from $5 to $25). Others will automatically make you a member with no deposit if you borrow a student loan through them.
8- Contact the lender if you have questions.
Alternative Education Loans
Students may choose any lender for their private alternative loans.
Application procedures and information
Once you click on the link above, you will go through several pages of information before coming to a list of lenders that students at UWL have used in the past. You can click on up to 3 lenders and hit the compare button to have a side by side comparison of the loans. Once you have chosen an alternative loan, you can actually apply by choosing the "Apply Now" button on the information page for that alternative loan.
The interest rate and fees that will be associated with the loan you have chosen will be determined by the lender after a review of credit. Most lenders will require a co-signer for an alternative loan.
Health Professions Alternative Loans
Certain private loans are only available to students who have been ADMITTED to an approved allied health program (PT, PA, OT, RT, NMT, NA, Clinical Lab Science).
Pre-professional majors do NOT qualify.
The UWL Financial Office will not be able to certify a health professions loan for students not admitted to one of these programs.
Minnesota Student Educational Loan Fund (SELF) Program
The Minnesota SELF Loan helps students who need assistance in paying for education beyond high school. Loan eligibility is not based on need. To be eligible for the SELF program, a student must be a Minnesota resident who maintains satisfactory academic progress, is enrolled at least half time in a degree seeking program and is attending an eligible institution. In addition, the student must have a credit worthy co-signer and not be delinquent or in default on a SELF or other outstanding student loans.
Borrowers are required to pay interest quarterly while in school. After graduating or leaving school the student enters repayment. The interest rate charged to the borrower changes throughout the life of the loan, and can change every three months. SELF Loan applicants are required to complete SELF Loan Entrance Loan Counseling. For more information visit the Minnesota Higher Education Coordinating Board, www.selfloan.org.
Minnesota SELF Loan Annual Loan Limit:
Undergraduate $10,000 per grade level
Graduate $10,000 per year
Minnesota SELF Loan Cumulative Loan Limit:
Graduate $70,000 including undergraduate SELF