Alternative Loans
Private (Alternative) Loans
Private educational loans are a good resource when additional funding is needed to supplement the student’s financial assistance. Students who have exhausted their Federal Direct Loan eligibility and other funding sources, may consider borrowing through a private alternative loan company. This option should be carefully considered.
List of Alternative Loan Lenders
In an effort to help students make an informed decision, Culver-Stockton College reviews loan options from various lenders. YOU ARE FREE TO CHOOSE ANY LENDER THAT YOU FEEL BEST SUITS YOUR NEEDS AS A BORROWER.
The College adheres to a Code of Conduct for students loans that prohibits inducements by private lenders. You are not required to select a lender from the link below. FASTChoice is an online comparison solution, customized for Culver-Stockton, to help you make informed decisions regarding a lender. You may apply directly from the FASTChoice website.
FASTChoice
What you need to know about private loans
Culver-Stockton College encourages you to take advantage of all sources of federal and state financial aid before borrowing through a private loan company. Similar to car and home loans, lenders have flexibility in setting the interest rate, credit criteria that must be met, and repayment terms.
- Private loans do not require students to submit a FAFSA and are based on credit-worthiness
- Private loans must be repaid separately from Federal Direct Loans (loans you may borrow by filing a FAFSA)
- They do not offer public service loan forgiveness
- Private loan lenders will require a co-signor if you do not have established credit
- Interest rates are based on the credit of you and/or your co-signor
- Interest accrues while the student is in college
- Repayment usually begins six months after graduation, but can vary by lender
Application Process
When to Apply
We encourage you to begin the process three-four weeks before the payment due date. This is to ensure there is sufficient time for the lender to process your application, and for you to turn in any requested paperwork to the lender. This also allows the financial aid office time to certify the loan, as it can take up to two weeks to add the loan to a student’s account during peak processing times.
It is best to set up your funding for the academic year to include both the Fall and Spring semesters, from August to May. Note: Summer terms always require a separate application.
Selecting a Lender
Choosing a lender is an important financial decision. Many factors vary among lenders. It’s in your best interest to do some research before making a final decision on choosing a lender. Things to compare among lenders:
- Interest rates – Determines how much you pay to borrow money
- Origination fees – A percentage or flat rate charged to borrow a loan
- Are payments required while you are in school?
- Is there a co-signor release? To determine your eligibility for a co-signor release, the lender will require a specified number of on-time payments, and will look at your credit score and credit history to determine if they would allow the co-signor to be released from the loan.
- Customer Service – Research customer service experiences from other borrowers.
- Repayment Plans – Repayment will vary by lender. Research: Are payments required while in school? What is your grace period after graduation? Do they offer determent/forbearance options if you are having financial trouble when you are in repayment?
If you have questions regarding your private loan application, you should call your chosen lender. You may also contact the financial aid office at 573-288-6000, ext. 6307 or email financialaid@culver.edu.
