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Alternative Loans

The Office of Financial Aid and Scholarships realizes that need-based financial aid sources are limited and do not always cover the full cost of attendance at MSU Denver. Private Loans, also known as Alternative Loans, may help cover remaining costs. This is in addition to the limited amount the government allows you to borrow under its Federal Direct Stafford and PLUS Loan Programs. 

What is an Alternative Loan?

Alternative Loans are offered by private lenders and have their own applications process. These loans are typically more expensive in terms of interest rates. A FAFSA (Free Application for Federal Student Aid) is not required to apply. 

Qualifying for an Alternative Loan

Like any other private loan, the application process involves a credit check (and sometimes income check) of the borrower and/or the co-signer.

Some lenders require half-time enrollment and that you are making Satisfactory Academic Progress (SAP). It is important to understand the loan you intend to borrow and the lender requirements.

All loan eligibility is based on the semester/term cost of attendance minus all other financial aid including Federal Direct and/or PLUS Loan amounts. Please contact our office to determine what your cost of attendance will be and if it can be adjusted.

What to Look for in an Alternative Loan

• Interest Rates
• Loan Fees
• Repayment Terms and Period

How do I Apply for an Alternative Loan?

MSU Denver does not endorse or recommend one lender over another. We encourage you to check with your personal bank first or use a search engine to review lenders before you apply. We will certify a loan through any lender. Once complete and if approved, your lender will send a certification request to our office for review. We will certify eligibility and loan amounts. The timing of disbursement varies from lender to lender and may be delayed pending the completion of other documents they may require from you.

Before borrowing an Alternative Loan, you should carefully consider your present level of debt and repayment obligations on all loans. Determine how much you need to borrow by working out a budget for your educational costs and subtracting all your resources for those costs. 

REMEMBER to borrow only what you need. Be an informed borrower. Know your lender and the total amount you have borrowed, the interest rates applicable to your loan, and your repayment requirements for all loans you have borrowed. Keep all your loan records in one file to assist you with tracking.

 


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