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Alternative/ Private Loans

*** Filing a Private Loan Complaint through Consumer Financial Protection Bureau (CFPB) ***

If you are a student and are experiencing any problems with your private loan including, taking out a new loan, repaying an existing loan or managing a loan you are now able to file a complaint through Consumer Financial Protection Bureau (CFPB). Once you file a complaint through CFPB you will receive a tracking number and you can check the status of your complaint on the CFPB website. Each individual complaint will be processed and the consumer will have the option to dispute the lender's resolution.

To file a complaint:

  • Call the toll-free phone number at 1 (855) 411-CFPB (2372)
  • Visit online at
  • Fax the CFPB at 1 (855) 237-2392
  • Mail a letter to P.O. Box 4503, Iowa City, Iowa 52244 

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.

How much can I borrow?
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:

• Undergraduate or Graduate/Professional student in an eligible degree or certificate program
• Enrolled at least half-time
• Be a credit worthy borrower or borrower with a credit worthy co-signer
• Student may be required to be a US citizen, permanent resident or eligible non-citizen
• Making satisfactory academic progress

What factors should I consider before choosing an Alternative loan?
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 the interest rate and what is it based on? Click here for current market data
• What is the LIBOR?
• What is the Prime Rate?
• What is the possible interest rate for this loan?
• When does repayment begin?
• Can principal and interest be deferred?
• How much is the loan origination fee?
• Is a co-signer required?
• What is the loan maximum I can borrow each year?
• What is the minimum I can borrow each year?
• Can I borrow to cover past due balances from a previous term?
• Are there any interest rate reductions or other incentives for borrowers who make their payments on time?
• Will my lender sell my loan to another agency/company? If so, will the terms change?
• Can I repay with no penalty?
• Does my lender offer a co-signer release option?
• Will the lender capitalize interest? How often?

What is my Credit Score?

For a free credit report, visit  You can receive one free report from each of the three credit bureaus annually.  If you want to view your credit score, you must purchase those from the credit bureaus at:

What your score means?
500 and below= 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

How do I apply for an Alternative loan?
As a general rule, a student should only consider applying for an alternative loan after all federal loan eligibility has been exhausted for the current academic year. Before applying for an alternative loan, please contact our office at 913-588-5170, or email to determine if there are any other sources of financial aid available. If you are a graduate or medical student, we recommend you consider the Federal Grad PLUS Loan before applying for an alternative loan. Please contact our office for the amount you are eligible to borrow for the academic year.

Please complete the following steps to apply for a private loan AFTER you have contacted our office to determine your eligibility:

The alphabetical list below is comprised of all lenders selected by KUMC students who have borrowed alternative loans during the past six academic years.

KUMC Student Financial Aid does not endorse any alternative loan lender. Multiple lenders should be researched before selecting one that best meets your needs. You are not required to choose a lender from this list. You will be notified if KUMC is not able to certify an alternative loan with the lender you choose. 

Please view the following lender websites to learn more about the alternative loan specifics. It is important to note that borrowers may receive better terms if a co-signer is used. Some lenders offer a co-signer release option.

Bank of North Dakota
DEAL Student Loan

Citizens Bank

College Ave. Student Loans

Commerce Bank
Your Future Education Loan

Discover Student Loans


CU Student Loans

Nelnet Student Loans

PNC Bank
Student Loan Center

Richland State Bank
Ascent Student Loan 

SallieMae Student Loans

SallieMae Medical School Loan


The content of these websites, such as interest rates, loan fees, borrower benefits and other elements considered when constructing the list, can change frequently. Listing these websites does not imply that KUMC Student Financial Aid agrees with the information presented on or linked to the websites. This list is provided as a courtesy to students.

Loan Disclosure Information
Recent legislation under the Truth in Lending Act (TILA) has mandated changes in the processing of private education student loans. Private student loans at KUMC consist of the KU Endowment Loan, Federal Nursing Student Loan, Nurse Faculty Loan Program, Primary Care Loan and any alternative or private loans provided by private lenders. Lenders are now required to provide three separate disclosures to borrowers. The first disclosure is provided at the point of application, the second disclosure is provided when the loan is approved and the third is provided before the loan disburses to the student or school. Students are now required to complete and return to the lender a Private Education Loan Applicant Self-Certification Form.

If your lender has provided a self-certification form for you to complete and return to the lender, or if your lender has provided an on-line self-certification form, you can obtain the required information from your Enroll & Pay following the instructions below.

Please do not submit the self-certification form to our office. If your lender has not provided you with the form you can access the form here. The form must be completed and signed by you, and returned to the lender requesting the form. Your loan will not be disbursed until your lender has sent all of the required disclosures to you and you have returned the self-certification form to the lender.

Listed below are the instructions on how to complete the self-certification form to return to the lender:

Log in to
Choose Enroll and Pay/ Student Center
Under Finances/Financial Aid, click on View Financial Aid
Under Select Aid Year to View, click on appropriate Aid Year
Under Aid Year, click on Financial Aid Summary
Under Financial Aid Summary, you will find:
Estimated Financial Aid Budget (enter in A.)
Total Aid (enter in B.)
Remaining Need (enter in C.)


A. Student’s cost of attendance for the period of enrollment covered by the loan



B. Estimated financial assistance for the period of enrollment covered by the loan



C. Difference between amounts A and B

WARNING: If you borrow more than the amount on line C, you risk reducing your eligibility for free or lower-cost federal, state, or school financial aid.




If you have any questions or for more information, contact Student Financial Aid at (913) 588-5170 or email

Last modified: Mar 11, 2021