Alternative Loan Options

Alternative Loans:

Unlike Stafford Loans, alternative loans are not "need-based." They are private, unsecured, credit-based loans issued to MBA students to help offset the cost of tuition, fees, supplies, living expenses and various other costs associated with their education. Alternative loans are available to all students attending a nationally-accredited, lender-recognized, school or program and who are credit-worthy or apply with a credit-worthy co-borrower¹.

The W. P. Carey School recognizes alternative loans as a primary source of funding for:

1. Students who are not eligible for federal funding,
2. Students who have reached the aggregate borrowing limits on their Federal Stafford Loans, or
3. As a secondary source of funding to offset any remaining costs associated with your MBA education not covered by federal funding.

Other provisions of alternative loans include:

• Alternative loans resemble Federal Stafford Loans in terms of repayment options, grace periods and deferments.
• Alternative loans currently have interest rates which are competitive with the rates of federal loans.
• The scope in which alternative loans can be used for "educational expenses" is broader than recognized for Stafford loans.
• Alternative loans have higher annual and aggregate borrowing limits.
• Alternative loans are credit based; therefore available to all students regardless of citizenship, residency status, employment status or enrollment status.
• Alternative loans assess origination fees at disbursement and sometimes at repayment.

Unlike some federal loan programs, alternative loans do not qualify for loan forgiveness programs.

¹Students who are not U.S. Citizens are eligible to apply for an alternative loan with a credit-worthy co-borrower. The co-borrower can be a relative, guardian or friend, but must be a U.S. Citizen.

Because of the numerous private lenders offering alternative loans, and the variety of loan programs each lender offers, choosing the best loan for your particular needs can be complex. Please contact a W. P. Carey Financial Aid Services Professional to assist you with this process.

Resources for Alternative Loans:

Potential lenders and loan options for alternative loans can be found at: www.finaid.org.