Student Alternative Loans
When is a student alternative loan appropriate?
If you have exhausted less expensive financing options such as Federal student loans, HES Payment Plan, and the Parent PLUS loan, you may want to consider a student alternative loan. The student is the borrower for the alternative loans; however, in most cases, a credit-worthy cosigner is required. Having a credit-worthy cosigner will also likely reduce the cost of the loan (interest rate, up front and back-end fees, etc.) Please be aware that the cosigner is fully responsible for repaying the loan should the borrower stop making payments. There are some alternative loan products that offer a cosigner release option after a specified number of on-time payments are made and the borrower is credit-worthy.
The Financial Aid Office strongly encourages you to borrow Federal student loans first and then consider the HES Payment Plan and/or the PLUS Loan before applying for a student alternative loan. You may compare benefits and features of the PLUS and the student alternative loan.
How do I select a student alternative loan?
LVC has partnered with Simple Tuition to provide you with a powerful student alternative loan comparison tool. The loan products included on this site are recommended by LVC; however, please be aware that you are free to conduct your own research and comparison of alternative loan products and select any lender of your choice. You should NOT apply for a student alternative loan prior to April 1, 2009. Filing prior to this date may result in your credit approval expiring.
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The Financial Aid Office has been notified that First National Bank will no longer fund the LVC LegacyLoan program. Applications received through October 1, 2008 will be funded. You may use LVC's customized loan comparison calculator through Simple Tuition to research other student alternative loan options.