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Private Alternative Loans

There are a large number of private commercial education loan options available to assist students and families in meeting college costs. Before you consider a private educational loan (often called an "alternative" loan), we recommend you determine your eligibility for federal student loans, which generally have better terms; more information about federal student loans at www.federalstudentaid.ed.gov.

Just like any other student loan, borrowers should consider a number of factors before applying for a private educational loan and are encouraged to review Division of Financial Aid loan counseling information.

Compare this type of loan to other financing options.

General Information

Private educational loans are usually higher interest programs with interest that accrues while the student is in school.
Students (or co-borrowers) must have a good credit history to obtain private educational loans.
Most lenders require that you be enrolled at least half time in a degree-seeking program (dependent on the lender). Purdue will certify your loan up to the cost of attendance less other aid.
Depending on the private loan lender, it is possible to apply for private educational loans for prior loan periods (retroactively) after the end of the loan period
You will be required to complete a Self Certification Form to provide financial aid information to your lender. You can find this information on the Accept Award Offer and Cost of Attendance Tabs.
Your lender is required to provide the borrower with three additional Truth-in-lending statements at specific points in the application process. As a result, we are recommending that you apply at least three weeks prior to the date you need the funds and comply quickly to information requests from your lender.

Loan History

Purdue is partnering with The National Student Clearinghouse to provide currently enrolled students access to federal and private loan history in one convenient location. This information is available through the Academic Tab in myPurdue and by clicking on the Enrollment Certification/National Student Clearinghouse link.

This service is not available for students who have graduated or for students who are no longer enrolled at Purdue. These students can access their federal loans through the National Student Loan Database System. Private loan information may be obtained by contacting their lender or servicer.

Choosing a Private Loan Product

Purdue University recommends borrowers compare and research various private educational loan programs and products that are available in the marketplace. The list of considerations below is provided as a starting point to assist with asking lenders questions to find the loan that best meets the borrower's needs.

Fixed or variable interest rate
Enrollment requirements
Co-signer release option during repayment
Loan forgiveness in event of student death or disability
Upfront application fee
Disbursement/origination fee
Repayment fee
Deferment options and repayment requirements

Interest-only payments while in school
Full monthly payments (no deferment)
Deferment available for current degree
Deferment available on previous loan if seeking loan for subsequent degree

Consolidation options
Minimum borrowing limits
Maximum aggregate borrowing limits
Satisfactory Academic Progress (SAP) requirement
Retroactive loan availability
Processing timeline
Application process and communication methods

Private Educational Loan Programs

The following is a list of private lenders students have used at Purdue University over the past three years. Purdue University does not endorse a particular lender. Students are free to choose any lender, including ones not listed below. See a side-by-side comparison of Purdue's top-volume lenders.

* = top-volume lenders
+ = lenders who certify loans at less than half-time enrollment

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Division of Financial Aid, Purdue University, West Lafayette, IN 47907, (765) 494-5050
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