Alternative loans are non-federal private loans that can provide additional funding for unmet college expenses and are available with a variety of loan terms. Alternative loans are best utilized after federal, state, and institutional scholarships, federal grants and loans are applied for and utilized. It is important to determine your eligibility for an alternative loan prior to applying for and accepting private student loans. The yearly amount cannot exceed the annual cost of attendance minus other financial aid received.
Alternative loans are not federally guaranteed, and interest rates, fees and terms vary widely by lender. Each lender will look at credit history as well as other factors to determine eligibility for a loan. Most will require the use of a co-signer or co-borrower and will offer a better interest rate or reduced feeds with the use of a co-signer. Because an alternative loan is not a federal loan, International students may borrow as long as he or she has an eligible co-borrower who is a U.S. citizen or permanent resident.
An alternative loan is a private non-federal loan offered by a bank or other financial institution of your choice to help cover educational expenses of an eligible student. Arkansas Baptist College does not endorse any specific private lender or lending program, we will process an alternative loan from any lender you choose.
Alternative loans are not for everyone and should only be considered when all other federal resources have been exhausted.
The link provided below can be used to begin your search for an alternative loan lender. Elmselect is a comparison tool that can assist students with a wise choice regarding alternative loan borrowing.
ElmSelect – www.ELMSelect.com
Alternative Loan Process
1) Choose a lender and visit their website to apply.
2) Once credit is approved and the promissory note has been received by the lender, Arkansas Baptist College will receive an electronic loan certification request.
3) Arkansas Baptist College will certify eligibility and submit the electronic loan certification to the lender.
4) There are loan disclosure, acceptance and self-certification processes that have been added to the loan process. Check with your lender to determine the deadlines for each process.
5) Alternative loan funds will be disbursed to the student account once all eligibility requirements are met and the funds have been received from the lender.