Loans- Private Alternative Loans

The Financial Aid Office suggests that you fully research the loan and lender that best suits your needs. It is a good idea to compare the benefits and costs of several supplemental loans before you apply, as the loan terms can vary. Also remember that it is always in the best interest of students and parents to explore federal student and parent loan options before applying for private loan products. For information to assist you, please review the Federal PLUS Loans versus Private/Alternative Loans under 2010-2011 Loans- Federal and Private.

Private Alternative Loan Lenders
A list of all educational private loans used by Paul Smith's College students.

**New!! Student Requirements for Private Educational Loans**
Effective February 14th, 2010, lenders have new requirements for processing and disbursing private education loans. Check with your specific lender regarding their process (i.e. online or paper) for certification and disbursement. For your convenience, we have listed some of the requirements below.

1. Self-Certification Form: Student borrowers are now required to complete a Self-Certification Form for each loan application they submit and return it to their lender as part of the loan application process. Each lender will likely provide you with a copy of this form; or download the form using the above link. Most lenders recommend that you use the form they provide. All Self-Certification forms should be sent to the student’s specific lender and NOT the Office of Student Financial Services. The Self-Certification form requires you to report your cost of attendance and estimated financial assistance in Section 2.


2. Active Acceptance of Loan: Student borrowers are now required to “actively accept” the terms of their loan approval before their school will be notified that school certification is required. The lender’s terms for how to “accept” the loan terms can be found on the private loan approval disclosure form that they will provide to the borrower.


3. Right to Cancel: Borrowers and/or cosigners have the right to cancel or rescind a loan offer within 3 business days after receipt of Final Disclosure. During this time, the lender cannot disburse loan funds. This cancellation period cannot be waived in order for funds to disburse more quickly. This may cause a delay in the disbursement of loan funds to your student account. Be sure to apply several weeks before funding is needed.

Anticipated Loans on Your Bill
Keep in mind when calculating how much to borrow that the gross amount of the loan may be reduced by fees charged by the lender. For loan types other than Parent PLUS if your loan is in "anticipated" status (not yet disbursed) on your bill, the amount indicated is the gross amount. Therefore, the amount you owe may actually be higher than what is reflected on your bill.

Direct-To-Consumer Loans
We strongly suggest students make use of other loan options before using direct-to-consumer loans. A student can contact their Financial Aid Counselor to discuss alternative loan options. Direct-to-consumer private loans are not certified by the school. The student supplies enrollment verification to the lender, and the loan proceeds are disbursed directly to the student. Students must ensure that the funds are in their possession on or before the payment deadline for each semester, as they will not appear as “anticipated aid” on the student account statement.