HomePolicy Pages Online Forms Parent PagesFAQ'sContact UsGlossary
Alternative Loan Page
Alternative loans are private loans offered through a lending institution and not part of federal government programs. Alternative loans are more expensive than federal government guaranteed loans and should only be used when all other options have been exhausted. Eligibility is based on the creditworthiness of the borrower or co-signer, if applicable. Please contact the lender directly with any questions related to a loan program's specific terms and conditions, and how they apply to you.
Steps in applying for an alternative loan:
-
Review Fresno State Alternative Student Loan Guide to compare the various loan programs and choose a lender.
-
Advise the Finanical Aid of your intention to obtain an Alternative Loan by submitting the Alternative Loan Request form
-
Apply for pre-approval for an Alternative Loan via lender website or complete a paper application and mail directly to the lender.
-
A credit check will be performed by the lender. If you are denied, a co-borrower may be necessary, contact the lender immediately.
-
Complete the promissory note online for both borrower and co-singer, if applicable-print a copy for your records.
-
The lender will send us an electronic file with the certification request. The certification process generally takes 5-10 business days
Fresno State Alternative Student Loan Guide
At CSUF we understand that educational costs are an investment in the future and we look forward to helping you make your college education affordable. To that end, we’re pleased to present our Alternative Student Loan Guide. This guide offers general tips on borrowing money for college costs as well as specific information on several loan programs.
• Helpful Tips for Choosing an Alternative Loan
• What Should I look for in an Alternative Loan?
• Lender for Federal Loans
• Pre-approval
• Cosigner Requirement
• Interest Capitalization
• Repayment
• Repayment period
• Repayment Incentives
• Give Yourself Credit!
• Lender Comparison Chart
Helpful Tips for Choosing an Alternative Loan
Alternative loans are private loans through a lending institution and not part of federal government programs. Alternative loans are more expensive than federal government guaranteed loans and should only be used when all other options have been exhausted. Be sure you have applied for all available scholarships, grants, work-study, and federal loan programs offered by CSUF before borrowing from an alternative loan program. Alternative loans are in the student’s name and a co-signer is usually required. Once a complete application has been received, the lender will perform a credit check and will let you know within two to three weeks if your application has been approved.
Return To Top
What Should I look for in an Alternative Loan?
Annual Percentage Rate (APR) – The APR is the annual cost of your loan including the effect of any fees and charges in addition to interest. The APR is determined based on the terms of the loan. APRs will differ based on the terms and loan amount. Make sure you are comparing like loan amounts when comparing APRs to receive a true comparison. Note, if the rate is variable, the APR may be increased after consummation of the loan. Take these terms and APRs into consideration when borrowing an alternative loan.
Return To Top
Does the lender of the alternative loan also participate in the Federal Family Education Loan Program (FFELP)? It may be easier to borrow your Federal Stafford and alternative loans through the same lender. Some lenders can even combine the billing for these loans so you will only receive one monthly billing statement.
Return To Top
Pre-approval
Do you need to know quickly if you qualify? Does the lender offer loan pre-approval over the phone or internet?
Return To Top
Cosigner Requirement
Does the alternative loan require you to have a cosigner? Sometimes cosigners reduce the costs of the loan, but if you can’t find a cosigner, you’ll need to find an alternative loan you may borrow on your own.
Return To Top
If you choose not to pay the interest on your loan while you are in school, the interest may be capitalized (added to your principal balance). When is the interest capitalized? Annually? At repayment? If the interest is capitalized annually the loan is more expensive than if it is capitalized only once at repayment.
Does repayment begin immediately or after you graduate or leave school? Make payments whenever you can afford to, but if you can’t make regular payments while you’re in school, you’ll need to find a loan that doesn’t require immediate repayment.
Repayment Period
How long is the repayment period in which you repay the loan? If your educational costs require you to borrow large amounts, you may need a longer time to repay the loans.
Repayment Incentives
Does the alternative loan reward borrowers who make payments on-time? For example, after 48 consecutive on-time payments will you receive an interest rate reduction?
Give Yourself Credit!
Lenders use credit scores to make fast and objective decisions on which applicants are likely to repay their loans on time. Credit scoring is calculated using many pieces of your past bill payment history (number and types of accounts, late payments, outstanding debt, and the age of your accounts). The way you have handled credit in the past is often a good indication of how you will manage credit in the future. Therefore, your credit score is like a snapshot of your level of credit risk at a particular point-in-time; when your credit information changes, so does your credit score. Give yourself the credit you deserve. Pay your bills on time, pay down any outstanding debt and avoid taking on new debt or applying for too many new credit cards.