# Alternative (Private) Loans

**Source**: https://www.sfa.ufl.edu/types-of-aid/loans/alternative-loans/
**Parent**: https://www.sfa.ufl.edu/types-of-aid/scholarships/

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Alternative loans are private education loans offered by banks or lenders.

They may help if:

- You are not eligible for federal aid, or
- You still need additional funds after using your federal loans.

Your eligibility is based on:

- Your Cost of Attendance (COA) minus other financial aid
- The lender’s annual loan limits
- Your credit history (or your co-signer’s credit)

Alternative loans are not for everyone; they can be expensive. You should only consider them after using all available federal loans if eligible (Federal Direct Subsidized/Unsubsidized and PLUS Loans).

[**Alternative Loans for Non-Degree Seeking Learners in Non-Credit Programs**](https://dev.sfa.ufl.edu/alternative-loans-non-degree/)

## Before You Apply for an Alternative Loan

**Use Your Federal Loans First**\
It is encouraged that students who are eligible for federal loans, maximize their eligibility before borrowing an alternative loan.

**Talk to Your Financial Aid Advisor**\
An advisor can:

- Confirm your remaining eligibility
- Discuss how much you actually need to borrow for your educational costs

**Compare Multiple Lenders**\
We recommend reviewing several lenders and comparing:

- Interest rates
- Fees
- Repayment options
- Borrower benefits

## Where to Find Lenders

Your bank, credit union, or other financial institution can be a good place to start your search for a reputable lender; however, you should always compare several loan options or lenders.

**The University of Florida (and specifically the Office of Student Financial Aid and Scholarships) DOES NOT recommend specific lenders or assist with private lender application processes.**

[**ELMSelect**](https://www.elmselect.com/v4/school/1149/program-select) is an external website that allows students to review participating lenders, compare loan products, and apply for private (alternative) loans.

The lenders listed on ELMSelect are those our students have used in the past; however, this list is not exhaustive. The University of Florida will certify alternative educational loans from any eligible lender, including those not listed on ELMSelect.

Students are encouraged to compare multiple lenders to identify the rates, terms, and customer service options that best meet their needs.

## Who Can Apply?

#### Most lenders require that the borrower:

- Is the student **(UF does not participate in Parent Borrower Alternative Loans).**
- Is enrolled in a degree-seeking program or approved for-credit certificate program
- Is enrolled at least half-time
- Has good credit OR a creditworthy co-signer
- May be required to be a U.S. citizen, permanent resident, or eligible non-citizen.

## Interest Rates and Fees

Private loans are credit-based and may include:

- Origination or processing fees
- Credit-dependent interest rates
- Variable or fixed rate options

**Important:** Advertised rates may only apply to highly qualified borrowers. Your rate may be higher depending on your credit profile. Always review your promissory note carefully.

## Repayment and Deferment

Most lenders allow deferment while enrolled at least half-time, meaning you don’t make payments while in school. However, interest usually accrues during deferment. Some lenders offer interest-only payments while in school.

Most loans include a grace period after graduation (typically 6–12 months). Repayment terms vary by lender, so check each loan for details.

## Borrower Benefits

Borrower benefits can significantly alter the cost of your loan. Make sure you research the fine print on a lender’s borrower benefits and keep up your end of the bargain.

Some borrower benefits can be lost if you fail to continuously pay on time and/or discontinue the use of auto debit for your monthly payment or if your loan is sold to another lender.

Additionally, if you fail to keep meeting the requirements you may owe your lender the amount you have saved.

## Helpful Hints

- Compare several lenders before deciding.
- A co-signer with strong credit may lower your interest rate.
- Keep copies of all loan documents.
- Record lender contact information.
- Follow up with your lender to check loan status.
- Make sure your mailing address is current in ONE.UF

## **Academic Year 2025-26** Loan Periods

Use the following dates when completing your loan application:

|  |  |
| --- | --- |
| Fall Only | 8/21/2025 to 12/12/2025 |
| Fall and Spring | 8/21/2025  to  5/1/2026 |
| Spring Only | 1/12/2026 to 5/1/2026 |
| Summer | 5/11/2026 to 8/7/2026 |

## Questions to Ask Prospective Lenders

Before choosing a loan, ask:

- What is the interest rate (fixed or variable)?
- What is the APR?
- Are there fees?
- When does repayment begin?
- Is interest deferred while in school?
- Is there a grace period?
- Can a co-signer be released later?
- Are there penalties for early repayment?
- What borrower benefits are available?
- What happens if the loan is sold?
- Is customer service available 24/7?