Financial Aid
Private Education Loans

Private education loans are non-federal loans offered by private lending institutions. Some families use private education loans when additional resources are needed to meet educational costs not covered by family resources and other forms of financial aid. These loans are generally more expensive than the federal direct loan programs and should only be used when federal loan eligibility (Direct and PLUS loans) has been exhausted. The following terms and conditions are generally common to most private loan programs and are provided to help students and families understand private loans. Students and families should always consult with the lender for the terms and conditions specific to a loan program they are considering.

The following information appears below:
General Private Loan Provisions
Repayment
Private Loan Options-Information
Summer School

General Private Loan Provisions:
Borrowers: The loan is in the student's name. However, for most loan programs, undergraduates will need a cosigner. Some loans have a cosigner release option after a certain number of on-time monthly payments, typically 24 to 48.

Eligibility Requirements: Applicant must be 18 years of age; a U.S. citizen or eligible non-citizen; enrolled at least half-time in a degree program; credit worthy or apply with a credit worthy cosigner.

Loan Amounts: The maximum amount students may borrow is the school's cost of attendance less other financial aid. Lenders usually have a minimum loan amount of $500 or $1,000.

Interest Rate: Private loans usually have variable interest rates which are based on an index such as LIBOR or PRIME plus an additional percentage depending on the applicant's and cosigner's credit score. For example, a loan program's interest rates may range from Prime plus 1% to Prime plus 5%. The highest credit score would receive Prime plus 1% and the lowest approved credit score would receive Prime plus 5%.

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Repayment Terms:
Payment periods typically range up to 15 or 20 years depending on the amount borrowed. Some loans allow a longer period. Repayment options generally include immediate repayment of principle and interest, interest-only payments during enrollment, or deferred principal and interest payments during enrollment.

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Private Loan Options-Information:
For most private loan programs, students must annually complete an application for each academic year. The loan application may be completed on-line at the lender's web site.

The first step is to choose a private loan which will meet the family's and student's needs. Alfred University does not endorse or recommend any specific lenders for a private education loan. The terms and conditions for these loans vary widely and families must research and decide which loans best meet their needs. To assist students with researching lenders, the AU web site provides a list of all lenders who still offer private education loans that AU students and families have used over the past three years. Students may choose any private loan they wish and are not obligated to use a loan from this list. The following two sources also offer good consumer information, including helpful repayment calculations, regarding private education loans:

Active private loan lenders used by AU families
Student Lending Analytics

FinAid: the Smart Student Guide to Financial Aid

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Summer School:
Current students interested in private loans for summer school should visit the financial aid office for counseling and to explore summer school aid options.

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Explore other topics: Contact Us:

Alfred University
Student Financial Aid Office
Alumni Hall
1 Saxon Drive
Alfred, NY 14802

Ph: 607.871.2159
Fx: 607.871.2252

Hours: 8:30 to 4:30 M-F

Staff Contact Information