Please be sure that you have reviewed and understand your Federal Stafford and PLUS Loan options before borrowing in the more costly private loan program. Before you consider a private loan, we recommend you determine your eligibility for federal student loans which generally have better terms.
Borrowing for the 2023-2024 academic year will begin in June 2023. Please do not apply for 2023-2024 loans prior to June 2023.
ALTERNATIVE / PRIVATE LOAN PROGRAMS
Alternative Education Loans, also known as Private 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 AN ALTERNATIVE / PRIVATE 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 creditworthiness 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 15 – 25 years depending on the amount owed.
Fees are dependent on the creditworthiness 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.
ALTERNATIVE / PRIVATE STUDENT LOAN PROGRAMS
Listed below are two application tools that will provide access to multiple lenders. Both INvestEd Marketplace and ELMSelect allow you to compare lenders and rates for possible private loans. Hanover College does not recommend or endorse any private student loan programs. Students can apply with any lender they choose even if not listed in either tool.