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Alternative Private Education Loans

Alternative private loans are not federally insured loans. They are private loans through commercial banks. It is imporant to consider the following when borrowing a private alternative loan for the purpose of paying education-related expenses:

• Discuss your borrowing options with a financial-aid advisor. Federal loans are a better option and should be maximized before you apply for an alternative private education loan.

• Reseach all applicable fees. Some lenders have no front-end fees, but they add fees once the loan is disbursed or goes into repayment.

• Understand how the interest rate is calculated on your loan and how often the interest is added to the principal balance.

• Become familiar with the terms of the loan, especially with repayment timelines and deferment options.

• Know the difference in your loan costs if you have a co-signer. Most lenders offer better terms to students whose loans are co-signed.

• Private Alternative Education Loans are considered a resource for education. These loans must be added to a student's financial-aid award and cannot exceed a student's cost of attendance.

Whitworth does not recommend enders. The following loan search tool is offered, without endorsement, as a resource for students and their families. It is maintianed and operated by Simple Tuition.

If you are considering an alternative private loan for a study-abroad trip, please consult with your financial-aid advisor regarding disbursement options.

Application and Disbursement Process:

Students apply directly with the lender. If the student is approved for the loan, the Whitworth Financial Aid Office staff will electronically certify the loan and will add the amount of the loan into the student's financial-aid award. For 2008-09, certification of these loans will begin in early summer and will continue throughout the academic year.

The loan will be scheduled to be disbursed according to the number of terms the student is attending. Funds usually transfer to the student's Whitworth account about 10 days before the beginning of the term to allow us time to prepare a credit check, if necessary, andto have loan funds available to you after you attend your first day of classes. If you require a different type of disbursement process than what is listed above, please contact your financial-aid advisor.