Alternative loans (also known as private loans) can help to fill the gap between the cost of education and the amount of other Financial Aid offered. These loans are provided by private lenders for those students who need to borrow funds in excess of the yearly maximums for the federal loan programs. Most lenders will take applicants' credit history into consideration when evaluating applicants’ eligibility. Students and/or parents may be eligible for these alternative loans which have varying criteria (interest rates, minimum monthly repayments, etc.). They are not federally guaranteed student loans.
Students have the right and the ability to select the alternative loan lender of their choice. We highly recommend that students exhaust their federal Direct Loan eligibility before pursuing funds through an alternative loan. Also, be aware that parents of dependent students are able to borrow up to the complete cost of education through the federal Direct PLUS Loan program.
Federal student loans are available to most students regardless of income and provide a range of repayment options including income-based repayment plans and loan forgiveness benefits, which other education loans are not required to provide.
To start your search, the UC Office of the President has put together a list of recommended lenders. You are not required to use any of the lenders on the list. They are simply provided for your convenience. Per HEOA guidelines, our office adheres to the UC Student Loan Code of Conduct. If you have specific questions related to your credit history, you should contact the alternative loan lenders at the numbers provided on the web site listed below:
In order to receive loan proceeds, you must apply to the lender directly.
In addition to completing a lender-specific loan application, you must also complete and submit a Private Education Loan Applicant Self-Certification Form to your lender.
For the cost of attendance amount required in Section 2A of the form, use the amount listed in the upper-right portion of your Financial Aid Award Letter (available throughMy Aid Status).
For the estimated financial assistance amount required in Section 2B of the form, total the amounts from Sections A, B, and C in your Financial Aid Award Letter.
Submit the form to your lender; do not submit it to our office. You will not receive any loan disbursements until your lender receives the form.