Private and Alternative Loan Programs

Private or alternative loans are available to assist families in bridging the gap between college costs and traditional funding sources. The federal government does not guarantee these loans. Approval for the loan, interest rates and fees are dependent on the credit worthiness of the borrower or the co-borrower.

Eligibility for a private or alternative loan

The school must certify enrollment and eligibility based on total cost of education minus other financial aid received. The borrower must be credit worthy as determined by the lender. Some students may qualify for a private loan without a co-signer, however in most cases a co-borrower is required.

Interest rates and fees

The determination of interest rates on private loans can vary depending on the type of loan and the lender. There is no cap on the interest rates, which are variable and may change quarterly. Fees can vary depending on the credit history of the borrower or co-borrower. Interest rates and fees for students who do not have a co-borrower will usually be higher.

Repayment

Repayment of a private loan can be deferred until six months after the student ceases to be enrolled at least half time, however the interest will accrue during the in-school period, which will increase the amount of the loan.

DePauw University encourages students and their parents to utilize their federal loan eligibility before considering additional funding through alternative loan programs.

Contact Judy Parent, Loan Counselor, at 765-658-4030 or jparent@depauw.edu for information on the private loan programs most frequently used by DePauw's student borrowers.