Altenrative Loans

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ALTERNATIVE LOANS

Students are normally able to finance their education completely from family resources and traditional sources of financial aid. However, there are instances when traditional assistance is insufficient to meet all of a family's perceived need-- this is especially the situation for students who experience higher costs (non-residents, students with families, some who are attending for the summer as well as academic year, and those attending a higher-cost institution). In these situations alternative loan assistance may be desired.

Since alternative loans (sometimes referred to as private loans) have few benefits and usually carry a higher interest cost, it is recommended that students only seek them after all possible traditional sources of financial aid have been secured (such as need-based grants, work and loans or unsubsidized Stafford or PLUS loans). Families should also inquire about borrowing possibilities from home equity loan programs-- these offer tax deductions for interest paid on the loans and thereby result in considerable savings to the borrower that are not available in other forms of borrowing. Another option would be to explore the possibility of borrowing against a pension plan or to withdraw funds from an IRA account (new taxpayer relief provisions remove penalties for early fund withdrawal for qualified education expenses). Talk with a financial planning expert about these options.

There are many alternative loans available. If you are considering one of these loans to supplement the aid you have already been offered, be sure to compare features and familiarize yourself with the variances between programs. Always remember, these are loans of last resort-- they are going to be more expensive than the federal unsubsidized Stafford loan and most will cost more than the federal PLUS loan for parents, which are available to all degree-seeking students who are enrolled at least half time. It is also important to keep all borrowing within reasonable bounds-- never borrow more than you believe you will be able to repay.

REFERENCE FOR ALTERNATIVE LOAN PROGRAMS
COMPARRSISON OF REQUIREMENTS AND BENEFITS

All applicants must be U.S. citizens or eligible permanent residents, enrolled at least half-time in a degree program, and be attending an accredited college/university. Exceptions to these requirements are noted.

In all loan programs, the student may choose to use or may be required to use, a credit-worthy co-borrower.

The alternative loan programs most often used by Western students are:

Name	Phone/Web Address	Requirements	Benefits
Regions Bank	1.800.858.7822 Stafford: http://test.customschool.com/wku/regions/stafford.html Plus: http://test.customschool.com/wku/regions/plus.html	-At least half-time enrollment - Credit established or creditworthy cosigner	-International Student Loans - No payment while in school
Campus Door	1.800.786.0002 www.campusdoor.com	- At least 18 yr old - Enrolled at least 1/2 time	- Minimum loan $500 - Maximum loan 100% COA - Low loan fees - Interest: prime rate - 0.5% - 12 month grace period
CitiAssist Loan	1.800.967.2400 www.studentloan.com/schools/wku/citiassist	- Enrolled at least half time - International students at least 18 years old may apply with approved co-signer	- Interest rate: as low as Prime minus 0.50%, based on credit rating and co-signer presence - Fees None - 0.25% interest rate reduction for auto debit -0.50% interest rate reduction when you make your first 48 consecutive monthly payments on time - Co-signer release option - loans can be certified for balances incurred within the last 12 months - a free, no fee, checkless Citibank Access Account for all borrowers
Fifth Third Bank	www.sallimae.com/signature/fifththird
Key Alternative Loan	1.800.KEY.LEND www.key.com/alternative	- Enrolled at least half-time - Student must be making satisfactory academic progress	- Master Loan Note availalbe - Online quick credit decision - Apply just once - Low interest rates - Variety of repayment terms
Nellie Mae	1.800.335.1900 www.nelliemae.com	- Co-borrower required for all freshman borrowers - Either student or co-borrower must be U.S. citizen or permanent resident; both must have valid SSN; both must be at least 18 - Student must apply for Stafford loan first	- On-line application - Instant pre-approval - Variable interest rates - Deferment options
Regions Bank	1.800.858.7822 http://www.customschool.com/wku/amsouth/private.html	-At least half-time enrollment - Credit established or creditworthy cosigner	-International Student Loans - No payment while in school
Sallie Mae Signature	1.888.2SCHOOL (1.888.272.4665) www.salliemae.com/signature	- International students may apply with eligible U.S. citizen or permanent resident as co-signer	- Low fees - Interest rates variable
Student Loan Funding	1.877.477.7537 www.studentloanfunding.com	- Students, parents, or sponsors who are U.S. citizens or permanent residents and 18 or over can apply - Enrolled at least half time	- No FAFSA required - Flexible repayment options - Up to $40,000 a year for college-related expenses
TERI Alternative	1.800.255.8374 www.teri.org	- At least 18 years of age - Enrolled at least half time - Satisfactory academic progress - Must have resided in U.S. for previous 2 years - International student may apply with eligible U.S. citizen or permanent resident as co-applicant	- First application and funding process - Low interest rates - payments deferred until after graduation - Flexible repayment options
Wells Fargo Collegiate Loan	1.800.658.3567 http://wfefs.wellsfargo.com/jump/ky/wku.html	- Temporary resident may apply with eligible U.S. citizen or permanent resident as co-signer	- No fees - May borrow up to full COA less any financial aid - Interest as low as 6% - 6 month grace period

Student Financial Assistance
317 Potter Hall
Western Kentucky University
1906 College Heights Blvd. #11018
Bowling Green, KY 42101-1018
Phone: 270-745-2755
Fax: 270-745-6586

Email: fa.questions@wku.edu

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