Alternative Loans

Alternative/Private Loans

Before you consider an alternative loan, make sure you have determined your eligibility for Federal Direct Stafford Loans and other financial aid. After determining what you are eligible for, you can consider other options for educational financing to assist you in meeting college costs.


As a family, you should also weigh the options between a Federal Direct PLUS Loan (parent) and an Alternative/Private Education Loan (student & co-signer).

To view a side-by-side comparison of a Parent Plus loan versus an Alternative/Private Loan, please click here.  


OTHER REASONS TO CONSIDER A PRIVATE LOAN:

  • You are not making Satisfactory Academic Progress (SAP).
  • You are not enrolled in a degree-seeking program. 
  • You are enrolled in certificate program only. 
  • You have a past-due balance from another semester.

Loan terms and eligibility differ for each lender. Not all situations above may apply to every loan or lender. Make sure you confirm whether you are eligible before applying. For quick facts, please see the section below for Additional Eligibility Information.


HELPFUL HINTS

  • An alternative/private loan is in the student's name (the borrower) and usually will require a credible co-signer (generally a parent), but can be anyone with good credit who is willing to co-sign the loan.
  • Applying with a co-signer can reduce interest rates offered.
  • Most lenders offer a co-signer release after a steady period of repayment.
  • Fixed and Variable Interest Rates are offered.
  • Please be advised that if you do not indicate a loan term or indicate an invalid loan term on your loan application, the loan term will default to the academic year (fall/spring). It is EXTREMELY IMPORTANT to indicate correct loan term dates to ensure the correct processing of your alternative loan.

Recommended Lender List

The Office of Financial Aid provides borrowers with a list of preferred lenders. These lenders have established themselves as quality institutions based upon efficiency in loan servicing, responsiveness to questions, quality of servicing, and borrower benefits. The lender you choose is a very important step in the loan process. Although Millersville University's Office of Financial Aid provides a preferred lender list, borrowers are free to choose any lender. Borrowers will not be denied or caused any unnecessary delay in certification for choosing a lender not on our recommended list.

The Office of Financial Aid meets with lenders on a regular basis to examine new products, services and benefits for our students to make sure we are providing the best options.

To view our list of recommended lenders for private/alternative loans, please click here.

This is an external website (ELM Resources) and you will be able to review information, compare, and apply for the private loans through this website.

NOTE: Before you are able to view lenders and their available loan options you will need to:

  • Enter Millersville University as your selcted school.
  • Choose they appropiate Program Type form the drop down list.
  • Click enter.

You can compare up to 3 different lenders and/or loan types at a time by checking the Compare box and then clicking on the link. You can also narrow your search results using the Filter options on the left hand side of the screen.

Keep in mind that loan terms vary, so it is important to be a conscientious consumer!

Loan Term Dates

For 2014-2015

(you can begin applying for summer loans after April 1, 2014 and begin applying for loans for fall/spring after May 1, 2014)

  • For summer 2014 (any session) - use 05/12/14 - 08/15/14
  • For the entire 2014-2015 academic year (Fall/Spring), use 08/25/14 - 05/9/15
  • For the Fall term only, use 08/25/14 - 12/13/14
  • For the Spring term only, use 01/18/15 - 05/9/15 (do not apply for a loan for this term until at least October 1, 2014)

As a borrower, you have the right to select any lender you choose and Millersville University Office of Financial AId will be happy to process any loan for students.  Please see our statement regarding preferred lenders to understand why and how we have chosen the recommended lenders.

Please contact the lender for any additional information regarding the loan program listed.

Additional Eligibility Information

If you plan to enroll less than half time (less than 6 credits per semester), you can apply for the following preferred alternative loans:

If you are admitted as a non-degree student, you can apply for the following preferred alternative loans:

If you are not making Satisfactory Academic Progress (SAP), you can apply for the following preferred alternative loans:

If you need to cover a past due balance, you can apply for the following preferred alternative loans:

NOTE: Different lenders have allow certain lengths of time to pass from the date of your past due balance and the date you requested the loan. For example, some lenders will only approve a loan for a past due balance of 1 month, while others may allow a loan for past due balance up to 1 year. Make sure that you confirm with your lender that you are eligible to apply.

As a borrower, you have the right to select any lender you choose and Millersville University Office of Financial AId will be happy to process any loan for students.  Other lenders may have the same eligibilty allowances as those listed above.  Please be sure to check with the lender if you have questions regarding eligibility requirements.

Details Regarding the Application Process

There are a number of changes to the Private/Alternative Loan Industry due to new federal regulations.  If you have ever borrowed an Alternative Loan or this is your first time borrowing a Private/Alternative Loan, please see the procedures below in obtaining a Private/Alternative loan.

The process in obtaining a Private/Alternative loan involves the following:

  • You apply for the loan through the lender
  • You must complete a self-certification, if one was not completed during the application process.
  • Once the loan is approved by the lender, information is sent to Millersville University to certify the loan (this certification can take several business days to complete, depending on the volume of loans we are receiving)
  • Once Millersville University has certified the loan, the lender will send an approval disclosure, which must be responded to by you.
  • Then a final (a third disclosure) will be sent to you and you will have 3 business days to rescind (cancel) the loan.

PLEASE NOTE THAT THIS PROCESS WILL TAKE MUCH MORE TIME THAN IT HAS IN PREVIOUS YEARS.  THIS MEANS YOU MUST APPLY EARLY IN ORDER TO HAVE YOUR LOAN USED AS A CREDIT TOWARDS YOUR SEMESTER BILL. 

THERE WILL BE NO EXCEPTIONS TO THIS DUE TO THE FEDERAL REGULATIONS.  YOU MUST HAVE ALL DOCUMENTS TO YOUR LENDER AND HAVE A FINAL APPROVAL BEFORE YOU CAN USE THE LOAN AS A CREDIT TOWARDS YOUR SEMESTER BILL.  IF YOUR LOAN HAS NOT BEEN CREDITED TOWARDS YOUR BILL, PLEASE CONTACT YOUR LENDER FIRST TO DETERMINE IF ALL DOCUMENTS HAVE BEEN RECEIVED.