Alternative student loans are offered by banks or lending institutions to help students and parents bridge the gap between the cost of education and the amount of financial aid received. These loans are credit based supplemental loans not guaranteed by the federal government. Terms and conditions vary for each lender. Credit checks are performed therefore if a borrower does not have enough established credit, a cosigner is encouraged. For specific details, review each lender's web page which may be accessed through the Alternative Loan Lender list below. As with any loan, you are agreeing to repay your loan regardless of whether you complete your education, are satisfied with your education or are unable to find a job. A student must apply for the alternative loan and complete all required documentation prior to the end of the student's current academic year enrollment. Any missing documents can be found on the student's myMu Portal. Students must be enrolled at least half time (6 credit hours) to be eligible for an alternative loan. MU does not endorse any lender or their products. Each lender varies in regard to terms, interest rate, and repayment options; therefore, students are encouraged to research private loan companies prior to borrowing. As a borrower, you may choose any alternative loan lender you prefer whether or not listed below.
If a student loan is your first borrowing experience, consider this responsibility seriously-your ability to borrow in the future depends on it. Alternative loans may have disadvantages when compared with federal education loans. We encourage you to first exhaust all federal aid and loan eligibility, to include Federal Direct Subsidized and Federal Direct Unsubsidized loans prior to borrowing an alternative loan.
The actual amount varies according to each student's individual financial circumstance, the cost of attendance, financial aid resources, and loan limits imposed by the lender. Your alternative loan amount plus financial aid should not exceed your cost of attendance. The following chart will help you determine the maximum alternative loan amount you should request for the academic year.