Private Alternative Loans

Private education loans are often used to close the gap between educational cost and the amount of federal assistance you have received. Private lenders offer these loans; eligibility is based on your credit score. The interest rate may be variable and/or fixed. Applying for private loan with a co-signer may help you qualify for better terms.

• Private loans are generally more costly and have fewer benefits than federal loans, although they can be a better alternative to using credit cards for education costs. Most private loans offer deferred payments until you leave school and often have flexible repayment options.
• Be sure to understand the full impact a private loan will have on your financial aid package and your budget. KSC will not certify a loan that exceeds your cost of attendance.
• Consider alternatives to borrowing a private loan. Use savings, a part-time job, a loan from a family member, a home-equity loan, or simply take steps to reduce the cost of attending school.
• If you are choosing a private loan and are faced with a few options, determine which loan is the best deal for you. If you plan to pay the private loan off over a 10-year period, choosing a loan based on a lower interest rate rather than the low upfront fees will generally be less expensive. Before accepting a loan, be sure to review all terms and conditions.

Ask prospective lenders these questions to help ensure you make the best choice:

1. Interest Rate – How much is it? Fixed or variable? When does interest capitalize and how often?
2. Loan Amount – Is there a maximum? Can I borrow more than the cost of my education? Can I use the loan to pay off a prior year’s balance owed to my school?
3. Co-signers – Is a co-signer required? Is there a co-signer release process? Will having a co-signer lower the interest rate?
4. Fees – Is there an application fee? Are there any disbursement fees? Are there any repayment fees?
5. Disbursement – Is the loan check payable to me or the school? How long does it take to receive the funds?
6. Borrower Benefits – Are there interest rate reductions that reward me for on-time payments or other actions?
7. Repayment – What will my minimum payment be? When does payment begin? How long is the repayment period? Is there a prepayment penalty?
8. Billing – Will I get one bill for all of my private loans? Can private loan bills be combined with federal loan bills?
9. Customer Service – Whom do I call with questions about the application? Is that the number I’ll call once I’m making payments?
10. Deferments – Will payments be deferred while I’m in school? If so, will interest continue to accrue?

• Select an alternative loan lender.
• Submit an online application (your lender will notify you when your application has been approved or denied) at least 6 weeks before payment is due, but not before May 1st.
• If your application is approved, complete the promissory note with your lender.
• The KSC Financial Aid Office will then:
  • Verify borrower eligibility when we receive the application from your lender
  • Certify the application if the student/borrower is deemed eligible and forward it to the lender (allow 7-10 business days)
• The lender will guarantee the loan; they will send a disclosure statement identifying the disbursement amounts per semester to you and confirmation of the guarantee to us.
• Our office will email the student an award notification listing the alternative loan.
• Disbursement amounts may be deducted from the semester’s charges after the loan has been guaranteed.

KSC Selection Criteria and Process for Private Loans

Keene State College requests information from private lenders so it can identify and recommend alternative lenders and loan products that have competitive rates, excellent customer service, and borrower benefits. Students and parents will be advised of the recommended lenders and loans for the academic year, and will be told on our website and in person that Keene State College will process loans from any lender and that students may apply for loans through the lender of their choice without penalty.

Evaluation criteria:

• Front-end fees and benefits to borrowers
• Repayment benefits and utilization rates
• Quality of service during loan processing, including consumer information and web-based service features
• Reputation and history of lender and loan servicer

ELM Select

ELM Select is a lender comparison tool. Through ELM Select, students and parents can research the terms and conditions of eight different lenders and choose the loan that best fits their personal financial situation, educational goals, and objectives. However, if you wish to use another lender not listed here, you have the right to do so. Each lender has different enrollment criteria. Please be sure to indicate your status correctly in order to avoid delays or errors in lender choice.

Every student/parent/guardian has the right to select their lender. The lenders listed at this site are independent entities. Keene State College makes no representations, warranties, or guarantees, implied or otherwise, as to the lenders listed at this site or that the financing options presented at this site are the most attractive terms available to any particular student, or parent, or guardian of a student seeking financial aid. Also, information may not be updated or timely or may be subject to data entry errors or changes by the lender. Please read carefully final loan agreements or promissory notes and understand their payment terms and other obligations.

KSC is not affiliated with any lenders and is not engaged in lending, legal, accounting, financial planning or other related professional services. Any agreements entered into with the lenders whose products are included at this site will exist solely between the lender and the borrower, and KSC assumes no obligation or liability in connection with any such agreements.

KSC recommends that borrowers consult with their own expert advisors before making educational financing decisions. Students and their parents/guardians have the right and ability to select the education loan provider of their choice and are not required to use any of the lenders listed here. There will be no penalty for choosing a lender that is not included as a lender on this site.

KSC reviewed information regarding each lending institution’s background, loan program requirements, customer service and program affiliates. The interest rate, fees or loan cost offered by these lenders may not be the lowest available. In addition, a lender may change rates, terms, fees, and other information from that which was presented in their responses. KSC will review the status of each lender annually and may add or drop lenders from this list.

KSC employees have no personal affiliations, financial interest, benefit, or other personal ties related to these lenders.