Student/Parent Alternative Loans

2010-2011 Alternative Loans

Please be advised that over the next few weeks, we will be updating the student and parent loan information on the web.  Check back often on the Financial Aid web pages for updated loan information (updated as of 6-23-10).

Private Educational Loans, also known as Alternative Education Loans, help bridge the gap between the actual cost of education and the limited amount the government allows a student to borrow in its student loan programs.

Private loans are offered by private lenders and there are no federal forms to complete.  Eligibility for private student loans often depends on a borrower's and co-borrower's credit score.

Private education loans tend to cost more than the federal education loans, but are less expensive than credit card debt.  Federal education loans offer fixed interest rates, better repayment and forgiveness options.  Since federal education loans are less expensive than private student loans, exhaust eligibility for federal student loans before resorting to private student loans.

Private student loans typically have variable interest rates, with the interest rate pegged to an index, such as LIBOR or PRIME, plus a margin.

The LIBOR index is the London Interbank Offered Rate and represents what it costs a lender to borrow money.

The PRIME Lending Rate is the interest rate lenders offer to their most credit-worthy customers.  A rate of LIBOR +2.93% is roughly the same as PRIME + 0.0%.  As of May 24, 2010: Libor is 0.47% and Prime is 3.25%.  To check the current index rates, check out BankRate.

Merrimack College is pleased to present a recommended lender list.

Merrimack College strongly recommends that a borrower contact the lender(s) for up-to-date information via the telephone number or web address listed below.

 Lender

Telephone

 Web Access

J.P. Morgan Chase

 866-306-0868

www.chaseselectloans.com 

Citibank

 800-788-3368

www.studentloan.com/schools/merrimack 

Citizens Bank

800-708-6684 new loans

866-259-3767 established

www.citizensbank.com/trufitstudentloan

Connecticut State

888-538-7378

www.chesla.org

Discover 

877-728-3030 

www.discoverstudentloans.com 

MEFA

800-266-0243 new loans
800-397-8386 established 

www.mefa.org/collegeloans

NMTW/Credit Union

866-237-8801

 www.nmtw.studentchoice.org

Rhode Island Family Education Loan

 800-758-7562

 www.risla.com/apply/rifel

Sallie Mae 

888-272-5543

http://go.salliemae.com/smartoption/

 Wells Fargo

800-378-5526 

www.wellsfargo.com/student



Please note that you are not obligated to obtain an Alternative student/parent loan through one of these lenders.

The Merrimack College Office of Financial Aid recommends the use of private educational loan programs after all other types of financing options (federal student and federal parent loan programs) are considered.

Before borrowing an education loan, carefully consider present level of debt and repayment obligations on all loans.  Determine how much is needed to borrow by working out a budegt for educational costs and subtracting all other resources (aid offered and accepted).  Remember, the ability to obtain loan funding is largely based on credit-worthiness, and with most programs, the co-signer's credit-worthiness.

 

To satisfy the requirements of the Higher Education Act of 1965 and the recently amended section on the Truth in Lending, private/alternative educational loans borrowers must now be provided with several disclosures from the lender.  Borrowers must complete a Private Education Applicant Self-Certification Form when applying for non-federal loans.  When electronically applying on-line, the lender will provide the borrower the opportunity to fill out required information before they can proceed with the review and approval of the loan.

Merrimack College Office of Financial Aid is making the Federal Private Education Loan Self-Certification form available to you in a .pdf format for viewing purposes only.  Borrowers will be required to complete the cost of attendance for the period of enrollment covered by the loan as well as the estimated financial aid.  Definitions are listed on the second page of the form: Cost of Attendance, Estimated Financial Assistance, Lender, Period of Enrollment, Private Education Loan and Title IV Student Financial Aid.

Note: Students may obtain their individual Financial Aid on myMack under the Student Info Tab.  Below are the 2010-2011 Estimated Cost of Attendance figures students will need to complete the Self-Certification form for an Alternative loan.

       
  Commuter Resident   Commuter Resident
Tuition $30,780 $30,780 Tuition $29,310 $29,310
Room & Board   $10,700 Room & Board   $11,790
Fees $600 $600 Fees $600 $600
Books $1,000 $1,000 Books $1,000 $1,000
  $32,380 $43,080   $30,910 $42,700
Class of 2012, 2013, 2014 Class of 2011

 

Federal Student Stafford and Federal Parent PLUS Loan

information can be found on this link.