Financial Aid Office
Student & Administrative Services Center, Rm. 1013 · (570) 327-4766 or (800) 367-9222 · Fax: 570.321.5552
Frequently Asked Questions about Private Alternative Education Loans
- I am currently applying for a Federal Stafford Loan and my parents are choosing not to apply for a Federal PLUS Loan. Do I have any other options?
- There are many different lenders that offer private alternative loans. Are the rates, fees, and terms all the same?
- Does Penn College recommend any lenders?
- How does Penn College choose preferred lenders?
Q: I am currently applying for a Federal Stafford Loan and my parents are choosing not to apply for a Federal PLUS Loan. Do I have any other options?
A: You can consider a private alternative education loan. The loan terms (rates, fees, etc.) vary considerably based on the lender and your (borrower’s) credit history. Most of these loans will require a credit-worthy cosigner if you do not meet the credit requirements. You are responsible for making payments when due on private alternative loans.
Q: There are many different lenders that offer private alternative loans. Are the rates, fees, and terms all the same?
A: No. Interest rates, fees, and terms vary, in part because private alternative student loans are not regulated by any government entity. If you are considering one of these loans, we recommend that you research several different lenders to find the best loan product.
Q: Does Penn College recommend any lenders?
A: Yes, visit our preferred lenders for private alternative loans.
Q: How does Penn College choose preferred lenders?
A: Our preferred lenders are selected by the quality of loan products, services, and customer service that is provided to students, parents, and the College. We encourage you to utilize our preferred lenders as we have the ability to make direct contact to resolve any issues. We cannot assure you of quick resolution if you use other lenders. However, nothing precludes you from selecting the lender of your choice.
View our Loans page for additional information about Private Alternative and other types of educational loans.