Skip to content.
NDSU

Tips on Selecting and Applying for an Alternative Loan*

Selecting a Lender

It is very important that you carefully consider the reputation and integrity of the many lenders and the educational loan programs they offer to determine which is best for you. If you feel you may need alternative loan funding, you will want to ensure that your lender offers a competive alternative loan program in addition to the stafford loan and PLUS loan programs. You will want to choose a responsible lender with a track record that demonstrates its commitment to students and their education.

Consider the following when selecting a lender: 

Value and Benefits

  • Does the lender offer to pay fees on your behalf?
  • Does the lender offer competive rates and pricing?
  • Does the lender offer interest rate reductions and rebates?
  • How easy is it for you to earn and keep rate reductions & rebates?

Fees

  • Does the lender charge fees?
  • Are the fees deducted from the amount you are borrowing?
  • Are the fees based on a percentage or your loan or a flat fee?
  • Are there any service charges over the life of the loan?
  • Ask if late fees are charged and if so, how are they assessed?

Interest Rates

  • Is the interest rate of the loan fixed or variable?
  • If the interest rate is variable, how often does the rate change?
  • How is the interest rate determined?
  • What is the estimate of total interest charged over the life of the loan?
  • Are there any periods where interest isn’t charged? 

Repayment Options

  • Does the lender provide combined billing for federal & private loans?
  • Does the lender provide a variety of repayment options?
  • Does the lender provide counseling on deferment & forbearance options?
  • Does the lender educate borrowers about effective debt management?

Customer Service

  • Does the lender recommend that students maximize their use of free aid and federal loan eligibility prior to approving a private alternative loan?
  • Does the lender offer life-of-loan servicing?
  • Can you apply on-line and do you have 24/7 access?
  • Does the lender offer on-line access to your account information?
  • Does the lender offer toll-free customer service and if so, what hours are knowledgeable representatives available to answer your questions?
  • Will the lender accept e-mail and fax inquiries? If so, how long is the average response time?

*NDSU Student Financial Services and its staff do not endorse or accept any incentives, financial or otherwise, from the lenders listed on our lender list.  Lender information is provided as a courtesy and in no way should it be interpreted as a requirement to use one of the listed lenders.  NDSU will process loans from any lender that participates in any educational loan programs.

 

Gabriel J. Brown Trust Loan

Alternative Loan lender list

Parent PLUS Loan lender list

Graduate PLUS Loan lender list



 

 

 
Last updated: Monday, May 12, 2008 3:40:09PM

Site Manager: Contact Bison Connection
Published by North Dakota State University

NDSU Bison Connection
Phone: (701) 231-6200 or 1-866-924-8969
176 Memorial Union, P.O. Box 5476, Fargo, ND 58105