Alternative loans are private education loans through a private lender to help finance the unmet cost of attendance at Southern New Hampshire University. We recommend that you apply for financial aid by completing the FAFSA (Free Application for Federal Student Aid) before applying for an alternative loan to ensure receipt of maximum federal, state and university aid.
Approval and interest rates are based on the credit worthiness of the student borrower and cosigner and vary from lender to lender. You should exhaust all federal, state and university options including the Federal Parent PLUS Loan and Federal Graduate PLUS Loan before borrowing an Alternative loan. Alternative loans are not federally guaranteed and may offer both variable and fixed interest.
Private loan processing, from applying with the lender to the time when funds credit to your account, can take 4-6 weeks. It is highly recommended that you apply for an entire year's worth of funding at one time thereby eliminating credit checks and additional processing time.
Alternative Loan Application Process
Due to recent changes in the Truth in Lending and the Higher Education Opportunity Act, there are additional requirements for alternative loans. Please read the following carefully in order to understand the changes and how they impact you, the borrower.
Students must apply for enough funding to cover the whole academic year as funds will be disbursed over the academic year
1. Alternative Loan Borrower Self-Certification
Lenders will provide provide a self-certification form to you as part of the application process. This form will request the cost of attendance, the estimated amount of financial aid assistance and the difference between the two. DO NOT RETURN THE FORM TO THE ONE STOP.
2. Alternative Loan Disclosure Statements
In addition to the loan borrower self-certification form, you are required to complete multiple disclosure statements. You are required to sign and return each disclosure statement in order that you have received them from the lender.
The disclosure statements provide:
General information about loan rates, fees, terms and conditions, maximum rate and maximum payment amount possible. Specific loan information for you upon approval and estimates the total repayment amount based on both the current and the maximum interest rate that may be charged under the loan program. An opportunity to rescind the loan application before the funding is disbursed to the University.
When to Apply
Apply for an alternative loan after you have completed the FAFSA application for the academic year and have received your official award notification from the One Stop. Note: If you apply too early, your application could expire, which would cause you to have to go through an additional credit check when you reapply. Undergraduate Day students should apply after May 1.
The application process will request that you specify a loan period for your private loan. It is important that you are aware of the start and end dates for your program. The start and end dates correspond to the academic year and not the calendar year.
Disbursement of Funds
Alternative loan funding is disbursed to the university after the start of each enrollment per semester/term. Because the university is committed to continuous processing improvements, the procedures for disbursement of your Alternative student loan funds may vary