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alternative loans
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Alternative loans are non-federal loans offered by some lenders and state governments.
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The purpose of an Alternative Loan is to supplement a student's financial aid package. They are not Federally endorsed or guaranteed, but they must be certified, or approved, through the USD Financial Aid Office. An alternative loan cannot exceed your cost of attendance (budget) minus all other financial aid.
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We strongly recommend that you use an alternative loan as a measure of last resort and pursue all of your Federal Loan options (Stafford and PLUS) first.
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Alternative loans are based on creditworthiness, so the initial step in applying is a credit check with the lender. Since the loans are not federally endorsed, each lender's loan program is different: Each loan varies on interest rates, fees charged, the amount you may borrow (minimum and maximum) and repayment terms.
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Selecting a Lender
Selecting a lender for an alternative loan is an important decision, one that will affect you for the life of your loan. The lenders listed below are committed to provide quality service to their borrowers and they offer repayment incentives to help you manage your loan debt.
Students (and families) are encouraged to research the lender benefits, customer service and other information related to loan processing, services and cost.
Students (and families) are not required to borrow from the lenders listed below.
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Applications for alternative loans are also available at the USD Financial Aid Office.
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