Private & alternative loans

Private loans (sometimes referred to as alternative or supplemental loans) are funds from private lenders to help cover educational costs. A student may want to consider a private loan when federal financial aid is not enough to cover the student's estimated cost of attendance (COA). Before you apply for a private loan, be sure to check with the Financial Aid and Scholarships (FAS) office to ensure you have maximized your federal loan eligibility first. Federal loans are usually less expensive and have more favorable repayment terms and conditions in comparison to private loans. If you have not completed the Free Application for Federal Student Aid (FAFSA) or if you have federal loan eligibility remaining, FAS will notify you by email and require you to sign a private loan certification form before the loan will be processed.

How do I qualify for a private loan?

Each lender has specific criteria you must meet to qualify for a loan. Most lenders will offer lower interest rates if you apply with a cosigner and some lenders require a cosigner. Most applications will require a credit check of the borrower and/or cosigner. Interest rates may vary by lender and may be dependent on a number of factors, including the credit check. In addition, KU may be asked to certify that you are meeting Satisfactory Academic Progress (SAP) standards and that you have not exceeded your estimated cost of attendance (COA). Please visit affordability.ku.edu/financialaid/sap for more information about SAP.

WHAT IS COST OF ATTENDANCE (COA)?

Your estimated cost of attendance (COA) is a standardized estimate of what it will cost you to attend KU for the academic year. FAS conducts research to determine the cost of living for students in the Lawrence area. The estimated COA is comprised of the following components: tuition/fees, room/board, books, transportation, and miscellaneous expenses. The COA also includes charges such as non-resident tuition and special fees for programs such as engineering, law, and pharmacy. Your financial aid package (including private loans) cannot exceed your estimated COA. Please visit affordability.ku.edu/cs/ for your estimated COA figures and additional COA information.

HOW DO I KNOW WHICH PRIVATE LOAN IS RIGHT FOR ME?

There are many things to consider when choosing a lender. Be sure to ask the following questions:

• What are the loan fees?
• What is the interest rate?
• When do I have to start repaying the loan?
• Do I have to be meeting Satisfactory Academic Progress (SAP) Standards?
• In how many hours do I have to be enrolled to receive the loan?
• What repayment options are available?

DOES KU OFFER ANY PRIVATE LOANS?

The KU Endowment Association loan program provides modest loan amounts to students who have at least a cumulative 2.0 KU GPA. New graduate students and new transfer students must have at least a cumulative 2.5 GPA to be eligible. You are not required to complete a Free Application for Federal Student Aid (FAFSA) to be eligible for this loan; however, a cosigner may be required. Applications are available online at kuendowment.org.

HOW CAN I GET ADDITIONAL INFORMATION ABOUT PRIVATE LOANS?

Many lenders offer private loans. Private loans are not the same as Federal Direct Stafford loans. If you have not yet borrowed Federal Direct Stafford loans, we encourage you to explore that option before proceeding with a private/alternative loan. If you have any questions about your Federal Direct Stafford loan eligibility, please contact FAS. Please see the Private/Alternative Loans Comparison Chart on the next page for more information about private lenders.

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Lender Name	Website	Phone Number	Undergraduate Students?	Graduate Students?	International Students?	Meet SAP?	Degree Seeking?	At Least Half-Time?	Parent Loan available
Ascent Student loans	ascentstudentloans.com	877-216-0876	Y	Y	Y	Y	Y	Y	N