ALTERNATIVE LOANS

 Western Kentucky University
Student Financial Assistance
317 Potter Hall
www.wku.edu/finaid

 We encourage you to fill out the Free Application for Federal Student Aid (FAFSA) at www.fafsa.ed.gov first before you look to alternative sources of aid.

Students are normally able to finance their education from family resources and traditional sources of financial aid – scholarships, grants, federal Stafford loans, Parent Plus loans and federal work study. However, there are instances when traditional assistance is insufficient to meet all educational expenses – this can be especially true for students who experience higher costs, i.e. non-residents, independent students with families, and those who attend during the summer as well as the regular academic year.

Alternative loans (sometimes referred to as private loans) are made by individual lenders and are not guaranteed by the Federal Government. Because these loans have a higher rate of interest and other associated charges, they will be more expensive that the federal unsubsidized Stafford loan, which are available to all degree-seeking students who are enrolled at least half time. And most alternative loans will cost more than the federal Plus Loan for parents.

It is recommended that students only seek an alternative loan after all possible traditional sources of financial aid have been secured. As with any loan, it is important to keep borrowing within reasonable bounds – never borrow more than you believe you will be able to repay.

You may be required to have a credit worthy co-signer for any alternative loan .

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