Alternative Loan

Non-federal, Private Loans are a great option if you need additional money for college. Once you have exhausted your grant, scholarship and federal loan funds, it’s good to know there is another education loan product for you.

The interest rates and fees are based on creditworthiness and the payment plan you choose. The interest rate is fixed for the life of the loan, which can save you thousands of dollars. Below are some common rates and requirements students will encounter when exploring private loan options.

Immediate Repayment – Principal Plus Interest*

• 4.95% to 7.09% Fixed interest rate
• 0% to 2% Guarantee fee
• Student can be enrolled less than half time.
• 0.5% Interest rate reduction for auto debit

Immediate Repayment – Interest Only** 

• 5.59% to 7.09% Fixed interest rate
• 0% to 2% Guarantee fee
• Student must be enrolled at least half time
• 0.5% Interest rate reduction for auto debit

Postponed Repayment***

• 6.49% to 7.59% Fixed interest rate
• 3% Guarantee fee
• Student must be enrolled at least half time
• 0.5% Interest rate reduction for auto debit

*Repayment begins as soon as the loan is fully disbursed.

**Interest payments begin as soon as the loan is fully disbursed. Full repayment begins six months after the student leaves school or drops below half-time status.

***Repayment begins six months after the student leaves school or drops below half-time status.

Other features include:

• Death Benefit (If the student dies or becomes totally and permanently disabled prior to loan payoff, the parent and cosigner are released from the outstanding debt.)
• When the student leaves school or drops below half-time status, the six-month grace period begins for loans made after July 1, 2013 that were placed in Interest-Only or Postponed Repayment.
• Loans funded and serviced by a trusted non-profit agency.
• The minimum loan amount is $1,000.

To qualify, the student must:

• Be enrolled at an eligible school
• Be age of majority at the time of application based on student’s state of permanent residence.
• Be a U.S. citizen or a non-citizen with proof of residency card.
• Have an acceptable income and credit history or an approved cosigner.
• Have a cosigner if loan amount is greater than $30,000.

Advantage Education Loans are one such lender who offer a 10-year repayment term. If your aggregate loan amount exceeds $10,000, you can request the repayment term to be extended to a 15-year term.

There are no prepayment penalties associated with these loans. Or call 1-800-988-6333 to request an application.