- What are Alternative Loans?
- Are Alternative Loans Guaranteed?
- Who is Eligible?
- From Whom Do I Borrow?
- Can Repayment Be Deferred?
- What is the Interest Rate?
- Are There Any Fees With These Loans?
- How Much May I Borrow Yearly?
- How is the Loan Disbursed?
- What Do I Do If I’m Denied?
What are Alternative Loans?
Alternative loans are private supplemental loans offered by various lenders. They are meant to function as a suplement to the grants, scholarships and Stafford Loans you receive.
Are Alternative Loans Guaranteed?
No, they are not guaranteed like Stafford loans and almost always require you have a creditworthy cosigner.
CCS recommends that all students have a creditworthy cosigner when applying for alternative loans, even if you are approved without one. Besides increasing your chances of being approved for your loan each year you attend school, in many cases it will lower the origination fees and/or interest rate of the loan.
Who is Eligible?
Alternative loan borrowers must be 18 years of age and a U.S. citizen or eligible noncitizen, or have a U.S. citizen or eligible noncitizen as their cosigner.
You must be enrolled at least half-time (6.0 credits) to receive some kinds of alternative loans.
From Whom Do I Borrow?
Many banks and educational lending organizations offer an alternative loan option. For your convenience we have compiled a list of alternative loans that current students have used - http://www.elmselect.com. CCS does not endorse any of these lenders and you are under no obligation to use lenders from this list.
Please feel free to conduct your own research and utilize any lender you prefer. Some additional time may be necessary while we work with your selected lender to set up the necessary processing channels. If you need assistance with any aspect of your loan processing, please contact Cozette Walker-Richardson in the Financial Aid Office (313.664.7493).
Whichever lender you ultimately choose, we recommend that you research lenders' interest rates and payment terms before you decide which to apply for. Doing multiple loan pre-approvals may have a negative effect on your credit rating.
Can Repayment Be Deferred?
In most cases yes, these loans can be deferred while you are in school. You should discuss deferment options with the lender before you decide which loan to apply for. Students are responsible for requesting deferment status from their alternative lenders.
What is the Interest Rate?
Interest rates vary depending on the lender you choose, whether or not you have a cosigner and your associated credit scores. In most cases your interest rate will not be determined until final approval is granted. Make sure you know your finalized interest rate before you sign your promissory note.
Are There Any Fees With These Loans?
Fees vary depending on the lender you choose, whether or not you have a cosigner and your associated credit scores.
As with the interest rate, make sure you know about associated fees before you sign your promissory note.
How Much May I Borrow Yearly?
Cost of attendance minus other financial aid awarded. Check your financial aid notification letter for your maximum yearly eligibility.
CCS strongly urges you to create a budget and borrow only what you need.
Make sure to borrow what you need for the academic year (in most cases September to May), not one semester at a time—multiple applications can have a negative effect on your credit history. Funds can also be borrowed to apply toward summer classes. Contact our office for more information.
How is the Loan Disbursed?
Unless special arrangements are made with the Financial Aid Office, the loan will be disbursed electronically to CCS in two equal payments, one for each semester.
The loan funds you receive must first be used to pay the balance that is owed to CCS. If funds remain after the balance is paid, a refund check will be issued for the excess by the CCS Business Services Office. These funds can be used to pay for valid educational expenses, such as books and supplies, rent, food, transportation and personal expenses.
What Do I Do If I’m Denied?
Always contact the lender to find out why. In some cases, the problem may be easily corrected. If you are unable to secure a necessary loan to supplement your financial aid package, please contact our office to discuss other alternatives. CCS strongly encourages students to have all funding in place before the enrollment period begins and charges apply.