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.
It is highly recommended that you apply for an entire year's worth of funding at one time thereby eliminating additional credit checks and additional processing time.
Questions to ask when exploring a private loan lender:
Under the Federal Truth in Lending Act (TILA), your private education loan lender is required to provide disclosure of loan terms and features at the time of application, a second disclosure after the initial application reaches an approval status and a final disclosure once the loan is accepted. After the final disclosure is sent, the lender also must provide the student with a ‘right to cancel’ period (3-6 days depending on mode of delivery). A self-certification form must be completed by the borrower and submitted to your lender before your loan may be disbursed to your SNHU student account.
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.