Private Alternative Loans

There are a large number of private commercial educational loan options to assist students and families in meeting college costs. You should only consider obtaining a private alternative loan if you need funds above and beyond the maximum amount of Federal Direct Loans, which means you should file the FAFSA . You are also encouraged to compare private alternative loan costs with those of the Federal Direct PLUS Loan, as PLUS Loan is usually less expensive and usually has better repayment options.

Most private alternative lenders rely heavily on the creditworthiness of the student and cosigner to determine whether or not a loan application will be approved and the interest rate.

Mercyhurst College recommends that borrowers compare and research various private alternative lenders available in the marketplace, but to avoid direct-to-consumer loans. Direct-to-consumer loans often have much higher interest rates than private alternative educational loans. Usually direct-to-consumer loans do not require school certification.

A good place to begin your research for Private Alternative Educational Loans is at www.finaid.org/loans/privatestudentloans.phtml .

The choice of a lender is ultimately that of the borrower. However, you may want to consider the following private alternative lenders listed below. Mercyhurst College has experienced overall good service by the private educational loan providers listed below: