Santa Clara University

Private Alternative Loans can help you pay college expenses that may not be covered by federal loan programs or other financial aid. These loans are one source of additional funds used to close the gap between your financial aid resources and college costs. Private alternative loans typically carry higher interest rates and fees than federal loans.

Undergraduates Students, Graduate Students and Certificate-seeking students are eligible for private alternative loans. You (and your parents) may be eligible for Federal Loans (Federal Direct Loans, Federal Stafford Loan and/or Federal PLUS loans) which have fixed interest rates that are often lower than Private Alternative Loan interest rates. Most Federal Loan programs offer additional benefits and incentives for borrowers which may reduce fees or lower your interest rates.

We strongly encourage all students to complete the Free Application for Federal Student Aid (FAFSA) at and consider borrowing Federal Loans prior to borrowing Private Alternative Loans.

Step to apply for a Private Alternative Loan

1. You will need to choose a lender and apply for the loan directly using the lender's online application on their Web site. You may conduct your own research and apply using any lender you wish. Santa Clara University Financial Aid Office will certify Private Alternative Loans from any lender. We have provided you with a Guide to Choosing a Lender that may assist in determining the best lender for you.

2.  Once you choose a lender and apply online directly on the lender's Web site, the lender will notify you of the results of your credit check and, if approved, will notify the school of your loan request and approved credit. The Santa Clara University Financial Aid Office will certify your loan and communicate with the lender directly to request loan disbursements for the beginning of each quarter. The loan will be disbursed in three equal disbursements; one at the beginning of the fall quarter, one at the beginning of the winter quarter and one at the beginning of the spring quarter.

Loan Amounts

The maximum amount that a student may borrow cannot exceed the cost of attendance minus any other aid. You are encouraged to borrow only the amount necessary to cover that portion of your educational expenses that cannot be covered by other means.

Fees

Alternative Loan Fees vary from lender to lender.

Interest Rates

Alternative Loans have a variable interest rate, based on either the Prime Interest Rate or LIBOR. Your co-borrower and/or your own credit score will determine your interest rate. We recommend that you first obtain your credit score prior to applying for an Alternative Loan. To obtain a free credit report visit  www.annualcreditreport.com or call 1-877-322-8228.

Loan Period

The loan period represents the period of time that you will be needing the loan funds. Please provide an accurate loan period on your loan application.

Once the funds are disbursed to Santa Clara University, your account will be credited with the loan funds. These funds will be applied towards tuition, room & board, fees and other charges. Remaining amounts will be credited to you as a refund to you from the Bursar's Office, or with your permission carried forward as a credit on your tuition and fee account.

Before the beginning of each academic year, you must reapply for the loan. You may begin this process after July 1.

Certification and Repayment

You must be enrolled at least half time to be eligible for a Private Alternative Loan. Some lenders, however, will approve loans for less than half time status. Contact your lender for more information.

Repayment typically begins six months after you graduate, drop below half time or withdraw from school. Contact your lender for more information.