Alternative Loans - General Information
Alternative Loan Programs
Please be sure that you have reviewed and understand your Federal Stafford and PLUS loan options before borrowing in the more costly alternative loan program. Lender List 2008-2009 - You have the option to use a lender from this list or any other lender of your choosing. These lenders meet or exceed criteria that are valuable to our students and college and were chosen via an annual evaluation process where they were scored based on a model provided by the National Association of Financial Aid Administrators (NASFAA). You are not required to use one of these lenders - your lender is your choice.
On-line Application
Private / Alternative Loan Programs
Private Education Loans, also known as Alternative Education Loans, help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its loan programs. Private loans are offered by private lenders and are not part of any federal financial aid program. Hanover College encourages students and their parents to utilize their federal loan eligibility before considering additional funding through private/alternative programs.
Eligibility for a Private / Alternative Loan
To be eligible, you must:
- Be a U.S. citizen or permanent resident
- Be at least 18 years of age
- Must have a positive credit history and/or a creditworthy co-signer
Lenders may also stipulate other eligibility requirements.
Annual Loan Limits
Minimum: Varies depending on the lender
Maximum: Cost of education less any financial assistance received
Interest Rate
Interest rates are dependent on the credit worthiness of the borrower and co-signer.
Payment Terms
You can defer your loan payments until six months after graduation or six months after you cease to be enrolled at least half time. The repayment period can typically range from 10 – 20 years depending on the amount owed.
Fees
Fees are dependent on the credit worthiness of the borrower and co-signer.
Disbursement of the Loan
- For academic year loans, the first disbursement will be paid at the beginning of fall semester and the second disbursement at the beginning of winter semester. For semester loans, the disbursement will be paid at the beginning of the semester.
- In most cases the funds will be disbursed to the school electronically (EFT). Proceeds will be applied to any outstanding educational charges including tuition, fees, room and board. If the loan proceeds create a credit balance the borrower will need to contact the Business Office to receive a refund, to receive a book voucher or to instruct them to return loan funds to the lender.
- Some disbursements may be made by co-payable check to the student and Hanover College. The student will be contacted by the Business Office to endorse the check before the student account can be credited.
