Guidelines for Evaluating a Private Alternative Loan Program

 

  • Has the borrower explored and exhausted all other means of educational funding?
  • What is the interest rate?
  • Is the interest rate variable?
  • How often does the interest rate change?
  • What are the annual program maximums?
  • Is there an application fee?
  • Are there processing fees?
  • How long does it take to process the loan?
  • Is a cosigner required?
  • Is credit-worthiness a requirement?
  • Is interest deferred while in school?
  • When does repayment begin?
  • What are the minimum monthly payments?
  • How long is the repayment period?
  • If payment must be made while enrolled, can the borrower handle these payments?
  • Are there pre-payment penalties?
  • Are there deferment or forbearance options available?
  • Can this loan be consolidated with other educational loans?
  • What is the source of the funds?
  • Is the lender reliable?
  • Where is the lender located?
  • Whom can the borrower contact with questions or problems?