Please ensure you have reviewed all federal loan options prior to applying for a private student loan. Federal Student Aid (FSA) offers an excellent guide to understanding the important differences between federal and private loans. The Student Financial Assistance office strongly encourages you to review this information prior to pursuing a private alternative student loan. If you qualify for federal student aid, the terms and conditions of those options can be better, and the loan options may be more favorable.
Most private alternative lenders rely heavily on the creditworthiness of the student and cosigner to determine whether or not a loan application will be approved as well as the interest rate to be assessed.
Marshall University recommends that borrowers compare and research various private alternative lenders available in the marketplace, but to avoid direct-to-consumer loans. Direct-to-consumer loans often have much higher interest rates than private alternative educational loans. Usually direct-to-consumer loans do not require school certification.
Students and families should receive trustworthy, reliable guidance from institutions about financial aid, including educational loans. Marshall University enforces a Student Loan Code of Conduct as a framework to provide the best possible loan terms for students and to avoid conflicts or the appearance of conflicts of interest.
- Interest rates – Interest may be capitalized. Therefore, increasing the amount of money you ultimately owe. Consider using a cosigner. You may qualify for slightly lower rates.
- Fees – Interest rates and fees that you pay are based on your credit score and the credit score of your cosigner if you choose to use a cosigner.
- Borrower Benefits – These vary by lender.
- Repayment Terms – Some lenders require you to pay while you are in school. Others will defer payments until after graduation.
- Borrowing an Alternative (private) loan is based on credit checks and should only be done after reviewing all other aid offered and contacting different lenders for the best terms.
- An Alternative loan is an agreement between the borrower, cosigner and the lender.
- Eligibility for private loans is based on the Cost of Attendance minus other financial aid received.
- Some lenders require half-time enrollment and/or for students to be meeting Marshall’s institutional Satisfactory Academic Progress (SAP) standards.
- Students must visit the lender(s) website for additional eligibility requirements.
- When applying for a private educational loan, the borrower must complete a Private Education Loan Self-Certification Form and submit it to the private educational lender. This form may be obtained directly from the private lender or by clicking this Private Education Loan Self-Certification Form link. The Private Education Loan Self-Certification Form includes the following information:
- The student’s Cost of Attendance (COA) for the period of enrollment covered by the loan;
- Any Estimated Financial Assistance (EFA) for the period covered by the loan; and
- The difference between the COA and EFA.
- Student applies with the lender and is notified of approval or denial.
- If student is approved, they must complete the required paperwork provided by the lender.
- The lender sends the university the certification request.
- Marshall verifies the student’s eligibility and will certify the request accordingly
- Once the loan is certified, the lender will send to Marshall the loan funds in accordance with the loan period.
Note: Allow up to 2 weeks for processing the private loan.
Click on the appropriate tile below to begin your search for a Private Alternative Educational Loan. Marshall University does not recommend, promote, or endorse any lenders. Students may select any lender offering private loans.
