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Alternative Loans

An Alternative Loan is a private, non-federal loan from an outside source such as a bank or other lending institution. These loans are different from the William D. Ford Direct Loan Program because they are not guaranteed by the federal government.

Credit guidelines apply in determining eligibility, and vary from lender to lender. Credit checks are normally performed at the time of application and are time sensitive. Check with your specific lender to determine credit check time frame and expiration policies.

An Alternative Loan can be used when a student is no longer eligible for a Direct Loan, or to help close the financial gap between the cost of attendance and all other forms of financial aid. A student should not borrow an Alternative Loan in place of a Direct Federal Loan.

A wide variety of loan products are available to undergraduate, graduate, professional, full-time, part-time, matriculated or non-matriculated students. Specific loans are also available to Canadian and other international students.

Students have the right to select the alternative lender of their choice.

University at Buffalo's Student Loan Practices Code of Conduct

List of key research points for students and parents to consider when looking for an alternative loan lender:

• Interest rate
• Loan fees (origination, disbursement, and repayment)
• Decision criteria
• Minimum and maximum amounts to borrow
• Enrollment requirements (half time or less)
• Duration and types of deferments offered
• Borrower benefits
• Repayment terms
• Past due balance eligibility

Borrowers need to choose an alternative loan product carefully and be sure they fully understand the terms and conditions of an alternative loan prior to signing a promissory note with a lending institution.

Student Academic Records and Financial Services (SARFS) will not return or cancel an alternative loan at the request of a student once the loan funds have been disbursed to the school. Return or reduction of funds will only be considered if:

• A student becomes ineligible for the loan funds due to a change in enrollment.
• A student is receiving additional funds not taken into consideration at the time the loan was certified.
• Returning the Alternative loan funds would allow the student to borrow from one of the more favorable Federal Loan programs such as the Stafford, Parent PLUS or Graduate PLUS loans.
• Fraud is suspected.

We are happy to assist the student in making changes to future or undisbursed alternative loan disbursements upon request.