They should be treated as a last-resort option. They are not part of the federal government’s Direct Loan program. The interest rates and repayment terms with alternative loans are generally less favorable than those of the federal student loan programs.
We encourage you to file the Free Application for Federal Student Aid (FAFSA) in order to be considered for all other available aid programs and that you first utilize any grants, scholarships, work-study and Direct loan eligibility before considering alternative loans. Continue reading “Alternative loans are private loans offered by lending institutions”