Alternative Loans

Private Education Loans, also known as Alternative Education Loans, are available from a number of sources. These loans can help bridge the gap between the actual cost of your education and your Federal loan. Private loans are offered by private lenders. These loans often require a co-borrower and eligibility depends on your credit score as well as the credit score of the co-borrower. Credit requirements are typically higher than those of Federal loans.

Private loans tend to cost more than the education loans offered by the federal government, but are less expensive than credit card debt. It is important that you understand the conditions and terms of the private loan before signing it. Often payments begin immediately and the interest rates are variable.

Federal education loans also offer better repayment and forgiveness options.

More information on alternative loans.

Alternative loans may be available through your bank or credit union. One source for is the RI Family Loan through RI Student Loan Authority.