Private Alternative Education Loans
Private educational loan programs are non-federal loans issued by banks, savings and loan associations, and credit unions. These programs allow students to borrow up to the full cost of attendance* minus other forms of financial aid. Most students will need a creditworthy co-signer such as a parent or other relative in order to obtain a private loan. Private educational loans carry variable interest rates based on the LIBOR rate or the Prime rate and repayment periods may range from 5 to 25 years. Interest rates, origination fees, loan maximums, and repayment terms should be carefully considered when researching and choosing a private loan.
Because each family’s financial circumstances will differ, Valor Christian College is unable to recommend a specific program that will best suit an individual family’s needs. Before you decide to borrow, carefully investigate all of your options. Make sure that you understand the application procedures, eligibility criteria, interest rate and processing fees, disbursement procedures, and repayment terms for each program you are considering.
Private alternative education loans are typically the most expensive borrowing option, therefore, should only be considered after eligibility for all federal student and parent loan options have been determined.
Once an application is approved by a lender, the school will receive a certification request from the lender. The link to the
Private Loan Self-Certification Form is provided as a courtesy to our students.
The proceeds of private alternative education loans may not be credited to a student’s account until the funds are actually received by the College. Therefore, if the loan proceeds will be used to pay a remaining balance due, the loan application process should be completed well in advance of the bill payment due date.
Valor Christian College does not maintain a preferred lender list for private alternative education loans, nor are we able to recommend specific lenders. We suggest you begin by checking with lending institutions with whom, you, your parents, your co-signer etc. already have a relationship. We also highly recommend that you shop around as the payment terms, interest rates, etc. can vary greatly between lenders.
The
Project on Student Debt, an initiative of the Institute for College Access & Success, a nonprofit independent research and policy organization, offers sound advice and information to consider when applying for a private alternative educational loan.
One final note of caution concerning taking out Private Educational Loans in addition to Federal Title IV grants, subsidized loans, unsubsidized loans, and parent PLUS loans; when the government determined the amount it should allow a student to borrow each year and the total amount it should allow a student to borrow for a degree a great deal of research and effort was expended on the potential impact of the repayment of the loan principal and interest on the student’s future. Borrowing in excess of the amount allowed by the government will have a substantial impact on the student’s ability to purchase a home, a car, and provide for his or her family once the student graduates and repayment begins.
*
A college’s cost of attendance includes actual tuition and fees and standard allowances for room and board, books and supplies, transportation, and personal expenses.
Director of Financial Aid
Valor Christian College
P.O. Box 800
Columbus, OH 43216-0800
Phone: (614) 837-4088