Alternative loans are available to students who need to bridge the gap between their education related costs and financial aid. Traditional financial aid resources may not be enough to cover all of a student's costs while attending school.
Alternative loans are not guaranteed by the federal government; they must be insured privately. This is a cost that the private loan lenders may pass on to the borrower in the form of hidden fees and interest rates. Terms and conditions can vary according to the specific lender.
The school determines the amount a student is eligible to apply for based on cost of attendance less financial aid and other resources. The lender decision is based on the student's credit worthiness and the amount the school certifies the student is eligible to borrow, except for alternative loans not requiring school need certification.
The amount a student can borrow is determined by the cost of attendance (COA) less other financial aid and resources. The lender may have a loan minimum/maximum.
Example: COA $ 43000
less other aid awarded $ 20500
the amount a student can borrow in an Alternative loan $22500
What are the eligibility requirements?
These requirements may vary by lender but are the most common:
KUMC Student Financial Aid does not endorse any specific alternative loan lender. Multiple lenders should be researched before selecting the one that best meets your needs. Listed below are some questions to ask when researching various lenders. We recommend that you not apply with multiple lenders because each application will result in an inquiry on your credit report.
What is my Credit Score? Credit Agencies
www.experian.com
www.transunion.com
www.equifax.com
What your score means?
500 and above= worst interest rates
500-580= higher interest rates
580-620= higher interest rates
620-640= good interest rates
640-650= good interest rates
650-680= very good interest rates
680-700= very good interest rates
700-720= very good interest rates
720 and above= best interest rates
Before applying for an alternative loan you must contact our office at 913-588-5170, or email financialaid@kumc.edu to determine if there are any other sources of financial aid available to you. You must contact our office to determine the alternative loan amount you are eligible to borrow for the academic year prior to completing an alternative loan application with a lender. You must also complete the Alternative Loan Request Form and return it to our office before your loan can be processed.
If you have not completed the Free Application for Federal Student Aid (FAFSA), you must complete the Alternative Loan Request Form for Non-FAFSA Applicants and return it to our office.
Click on the links below for lists of alternative loan lenders:
For more information, contact the Department of Student Financial Aid, (913) 588-5170 or email financialaid@kumc.edu
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The University of Kansas Medical Center