Private Alternative Loans

Alternative or private loans (non-federal student loan products) may be available to assist you when other financial aid (such as the Federal Direct Unsubsidized Loan) does not meet all your financial needs. These loans, offered by banks and online lenders, require a student borrower to be credit-worthy, and/or to have a credit-worthy co-signer. We advise you to compare various loan options as rates and terms can vary from one lender to another. To read about the difference between Federal and private loans visit studentaid.gov.

Finding a Lender

Students can choose an alternative loan product from any lender they wish. The University of Cincinnati does not endorse lenders or loan products nor does it limit student choice.

To assist students who may be looking for an alternative lender, we ask lenders that UC students have used in the past to make their loan information available via FASTChoice, a free online loan comparison tool. Via FastChoice, you will receive basic counseling on alternative loans, and you can see side-by-side comparisons of alternative loan products used by UC students in the past.

You can also bypass FastChoice and simply search online for the lender of your choosing. Ultimately, you are the comusmer and should exercise appropriate financial judgement when choosing an alternative educational loan.

Factors to Consider

It is important to consider several factors when selecting the right alternative loan for your situation. While not a comprehensive list, here are some key points you should consider when choosing an alternative education loan.

1. Costs:

2. Repayment Flexibility:

3. Other Considerations:

The Application Process

Lenders will allow your credit approval to last for different lengths of time; for example, one lender may approve you for 180 days while another does so for up to 365 days. Applying 2-4 months in advance of a new academic year is often enough time to ensure you have the funds available when tuition is due. Applying early is advised if you are concerned about being approved for credit, or if you wish to secure funds prior to signing a rental agreement/lease. If you apply too early prior to the academic year for which you are using the loan, your approval might expire, meaning you would have to re-apply.

Once you have identified one or more lenders to which you will apply online, follow the steps outlined by each various lender. Borrowers are not required to accept a loan offer just because a lender has approved you. In fact, you can “shop” rates from different lenders if you apply for student loans with multiple lenders within a 14-day window (Experian, a credit reporting bureau, says some credit score models now even use up to a 45-day window). This means multiple applications for student loans within the window of time are treated as a single inquiry, lessening multiple hard inquiries from being reported which could cause a more significant temporary dip in your credit score.

A lender’s application will ask for the dates of your planned enrollment. To ensure smooth processing, we advise you to use the dates listed on our MedOneStop site (click the ‘Financial Aid’ tab and then ‘Semester & Aid Disbursement Dates’).

The limit you can receive annually through a private loan is based on your annual cost of attendance minus any other scholarships, student loans, or other financial aid like AmeriCorps or military assistance (view our cost of attendance and select your appropriate academic level as well as your state residency status). Cost of attendance is your billed charges (tuition and fees) plus estimated expenses not billed by UC (housing, food, travel, personal living, etc.). Your lender will contact UC to verify the amount they approved for the academic year does not exceed your cost of attendance minus your other financial aid (lenders refer to this as the “school certification process”).

If you do not meet a lender’s credit criteria, you might receive the loan if you add a credit-worthy co-signer. Adding a co-signer can often help borrowers receive lower interest rates on private loans as well.

Once your loan application process is complete according to your lender funds are typically sent from the lender to UC at the designated disbursement date(s) to be credited to your UC student account. When charges of tuition and fees are paid in full, the UC Bursar Office will then issue a credit balance refund to you (often via direct deposit to your bank account).

Should you have questions about borrowing a private alternative loan, reach out to your lender directly or contact the UCCOM Office of Student Financial Services using our contact information on the left of this page.