Alternative Education Loans
If
you have received a federal Stafford and/or PLUS loan, checked into
scholarships, applied for funding, and still have expenditure to cover
for college, now is the time to think about an alternative or private
loan. Alternative loans usually have higher interest rates, more
charges, and less flexible repayment choices than federal loan
programs.
They should be used only if you need
additional finances after obtaining financial aid through scholarships,
allowance and federal loan programs. And also when you are ineligible
to receive Stafford or Graduate PLUS loans or your parents are
ineligible (or not interested) to receive a Parent PLUS loan.
Alternative loans are not the part of federal programs like the Federal
Family Education Loan Program. So, loan terms and limits differ
substantially by program and lender.