Alternative loans are credit-based student loans offered by private lenders. They are available to students who need funds in addition to their federal aid to meet educational expenses or for those students not eligible for federal aid. If you have reached your loan limits for the Federal Stafford Subsidized and Unsubsidized loan programs, but you still need money for your education, the alternative loan can help you. Additionally, the alternative loan option is beneficial to international students and to those students that are non-degree seeking or may be enrolled for less than halftime, or to dependent students whose parents are not willing to take out a Federal PLUS Loan.
Alternative loans are largely based on the applicant's creditworthiness. As with the Federal PLUS, the borrower may be eligible to borrow the difference between the cost of attendance and financial aid (some lenders may have annual caps on the maximum amount borrowed). Repayment on most of these loans, however, starts six months after the student leaves school. Loan terms vary from lender to lender--each uses its own formula for calculating interest, some lenders charge fees and others do not, and each company has its own definition of creditworthiness The interest rate is generally higher than that of the Federal Stafford Loans, and interest may be capitalized more frequently. Please check with the lender for more information on each loan. Before applying for an alternative loan, please discuss all of your options with the Financial Aid Office.
Please keep the following in mind:
- Variable vs. Fixed Interest Rates
- Delayed Repayment (in-school deferment) vs. Immediate Repayment
- Application, Processing, and Disbursement Fees
- Flexible Repayment Options (repayment after no longer enrolled)
- Repayment Incentives (interest rate reduction for one-time payments, electronic bill payment, etc.)
- Consolidation Options
Private Loan Self-Certification
This self-certification form MUST be completed and submitted to LCC. To complete the self-certification form, please visit our forms page.
Students must thoroughly investigate all funding options and lender differences prior to applying for an alternative loan. For your convenience, LCC has listed the lenders used by other students over the last three years. LCC does not promote, endorse, or recommend the educational loan products of these lenders. LCC will process a loan application from any alternative lender. Students can obtain information on other alternative lenders by conducting an Internet search for alternative student loans.
Financial Aid Office
Gannon Bldg, Room 203
Phone: (517) 483-1200
Additional contact information »
Monday - Thursday: 9am – 6pm
Friday: 9am – 4pm
School Code: 002278