However, private loans, also known as alternative loans, provide another borrowing option. Although the FASFA is not required, private loans may have varying interest rates and limited repayment options. You should consider alternative loans as a “last resort” lending option.
An option that you can use to review and compare private lenders is available at www.credible.com/salem.
Salem College does not endorse, recommend, or promote any lender for private loans.
The listing shown on Credible is not a preferred lender list, nor does it represent every lender that provides private educational loans. Salem College will certify private education loan requests for any lender you choose, regardless if they appear on Credible or not.
The lender you choose will provide you with current interest rates, processing fees, and co-signer requirements. The lender determines interest rates for loans based on the student and cosigner’s credit worthiness.
Alternative student loans differ from lender to lender. It’s important to ask questions when seeking a private student loan, so you can compare loans, and choose the one that best fits your needs.
Here are a few questions you might want to ask a potential lender about any private student loan you are considering:
What are the disadvantages of an alternative loan?
How much loan am I eligible to receive?
Your loan eligibility is based on your Cost of Attendance (COA) minus any other awarded financial
aid. Salem College cannot certify your loan amount above your maximum eligibility.
Has my loan been approved?
Please be aware that “pre-approval” is not the same thing as a final approval because once the lender receives the school certification record the loan could still be denied by the lender. Please be sure to complete the application in full to avoid delays in the processing of your application.
Can I use my alternative loan to defer payment of my bill at Salem?
If the Financial Aid Office receives an approved school certification request from your lender, your alternative loan amount may defer (count as a credit) your bill.
What is the loan period as requested by the lender’s loan application? The loan period for:
○ Be realistic about what your salary will be when you graduate from college.
○ Add up the total amount you will owe on all your student loans.
○ Estimate what your monthly payments will be.
○ Compare your estimated monthly payment with your estimated monthly income.