Loans- Private Alternative Loans

Alternative loans are credit-based loans for which students may apply to cover the gap between their cost of attendance and any other financial aid received. These loans are school-certified, meaning the school must certify that the student is attending The College and that their aid, including this loan, does not exceed the cost of attendance.

Many banks and private lenders offer alternative loans for financing educational costs. Families may also want to explore the use of home equity loans and personal loans. Interest rates, repayment terms and approval requirements vary. The Financial Aid Office can provide additional information for commonly used alternative loans. Check with a bank or lender for more assistance.

Often times, students will be required to obtain a credit-worthy co-signer to be eligible to take this type of loan. It may also be in the best interest of the student to obtain a co-borrower as this may reduce the interest rate on the loan.

Paul Smith’s continually monitor lender's updates and customer service to ensure benefits continue to adhere to our criteria. Any loan options that no longer adhere to our criteria are removed. At least three unaffiliated lenders will be presented to you at all times.

The Paul Smith’s Financial Aid Office maintains professional relationships with all lenders. Our staff is prohibited from accepting financial or other benefits in exchange for displaying lenders and loan options. These include: receiving compensation to serve on any lender board of directors or advisory boards; accepting gifts including trips, meals, and entertainment; allowing lenders to staff our institution's financial aid office; allowing lenders to place our institution's name or logo on any of their products; and owning lenders' stock (for those college officials who make loan decisions for our institution).

Alternative Loans should not be confused with Direct to Consumer loans. Direct to Consumer (DTC) loans are loans for which students can apply to assist in paying for their education. These loans are NOT certified by the school and usually have higher interest rates. The loan funds are sent directly to the student borrower and not to the school; as a result these loan funds will not appear as expected financial aid on the student's tuition bill. Although the maximum loan amount for a DTC loan should be cost of attendance minus other aid, without the school certification process there is no way for the school to ensure the cost of attendance is not exceeded. Other aid, including scholarship and grant funds, could be reduced or returned entirely because the cost of attendance was exceeded with a DTC loan. For most students, the traditional Alternative Loan and other aid programs are the best sources for financial aid and Direct to Consumer loans should be avoided. However, check with your financial aid counselor to discuss what options are available to you for assistance in making this determination.

Disbursement of Funds
Most Alternative loans are disbursed equally into the students' account accordingly to their enrollment.

Private loans can vary widely in interest rates, repayment terms, and eligibility criteria.

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