Before applying for a private or alternative education loan, you may qualify for grants and/or other assistance under Title IV of the Higher Education Act. Loans under Title IV include the Federal Stafford and the Federal PLUS loan. These Title IV loans may have terms and conditions that are more favorable than the terms and conditions of private education loans. The more favorable terms of Federal loans generally include the interest rate, fees, and repayment options such as deferments and forbearances. In addition, Federal loans may be eligible for loan repayment, loan forgiveness, discharges due—for example—to total and permanent disability or to death.

All students are strongly encouraged to complete the Free Application for Federal Student Aid (FAFSA) each year. By completing the FAFSA you are applying for federal and state aid including Pell grants, Stafford Loans, and other federally funded campus need and/or merit based aid. Parents of dependent students may also apply for a Parent PLUS loan.

Students and their families can borrow additional loan funds to help meet their college costs using Alternative Loan programs. These loan programs are provided by commercial lenders and are not supported by state or federal financial aid funds. Given the current state of the economy and tightening of credit criteria, the availability of alternative loans is declining while interest rates on these loans is rising. Some alternative loans may require interest payments while the student is enrolled in school.

A private alternative loan is typically issued in the student’s name and most often requires a credit worthy cosigner, who is a US citizen or permanent resident. Maximum loan amounts, loan terms, borrower qualification, repayment schedules, and interest rates vary among lenders.

Private Alternative Loan Considerations

• Apply with a credit worthy cosigner - Applying with a cosigner may provide you with an increased chance of approval and more competitive interest rate.
• Borrow only what you need to meet your educational costs
• Do your research. Ask questions of your lender and find out which loan will benefit you the most.
• Be aware of interest rates, fees, and repayment terms before completing the application and promissory note.
• Monitor you total indebtedness being sure you will be able to repay with interest.
• Cosigners are equally responsible for repayment of the loan and their credit is equally affected.

Alternative loans are now subject to additional regulations as a result of new Truth in Lending legislation. The Federal Reserve Board approved final amendments to Regulation Z (Truth in Lending) that revise the disclosure requirements for private education loans. Schools and private lenders must begin to comply with these regulations effective February 14, 2010.

The new rules apply to loans made expressly for postsecondary educational expenses and affect all educational loans except those made, insured, or guaranteed by the federal government, which are subject to disclosure rules issued by the Department of Education. Schools and private lenders making educational loans will be required to provide students with a series of disclosure statements about their loan and students will be required to complete a Self Certification process.

Disclosures will be provided directly to the student borrower by the school or private lender making the loan. Students will need to complete a Self Certification form provided to them by the school or private lender.

Self Certification

The student will be asked to provide the Cost of Attendance on the Self Certification form. Below are estimated Cost of Attendance amounts that can be used to complete the Self Certification.

Finally, students will also be asked to provide a total for Estimated Financial Assistance. Students can view their information by logging on to my.pitt.edu and going to Student Center. Click on “View Financial Aid” and then on the appropriate financial aid year. Details of the total financial aid awarded to the student can be seen.

Disbursement of Private Alternative Loan Funds

Per HEOA regulations, lenders are required to provide borrowers with a three business day right-to-cancel period after the final disclosure of a private student loan. In addition, lenders are required to add an additional three business days for a borrower to receive the final disclosure. In most cases the disbursement process, which in itself may be another three day process, will begin on the eighth day. Borrowers should keep this timeline in mind if they are planning to use loan proceeds for other educational purposes.

Below is an alphabetically arranged, comprehensive list of Alternative loan products that University of Pittsburgh students have utilized in the past. If you plan apply for any alternative loan, please be sure to contact the lender directly. The University of Pittsburgh and the Office of Financial Aid does not endorse, promote, or recommend any of the loan products listed and their inclusion on this page is strictly informational.

Students and their families may choose the Alternative Loan Lender of their choice. Your choice of a lender other than those listed will not result in the denial or a delay of processing. Upon application, the lender of your choice will forward a certification request to the Office of Financial Aid.

Citiassist Private Student Loan       (see application disclosure)

Credit Union Student Choice - (lenders are credit unions nationwide – membership is required & application disclosure is available at the lender's site)

Credit Union Student Loans – (lenders are credit unions nationwide – membership is required & application disclosure is available at the lender's site)

Discover Private Student Loan        (see application disclosure)

PNC Solution Loan        (see application disclosure)

Smart Option Lenders – lending partners include AMS, Commerce Bank, Dollar Bank, Erie Federal Credit Union, Fifth Third Bank, Nellie Mae, Regions Bank, Sallie Mae Bank, StuFund. (application disclosure is available at each lender's site)

Suntrust Custom Choice Loan        (see application disclosure)

US Bank Private Student Loan        (see application disclosure)

Wells Fargo Private Student Loan        (see application disclosure)

Non PA State Agency Loans

Alaska Supplemental Educational Loan

Connecticut Higher Education Supplemental Loan Authority

Massachusetts Educational Financing Authority

New Jersey Class Loan

Rhode Island Student Loan Authority

South Carolina Palmetto Assistance Loan

Vermont Student Assistance Corporation