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Seton Hall University

Alternative Student Loans

An Alternative Student loan is a private student loan in the student's name. A creditworthy co-signer is highly recommended to keep the loan fees and interest rates to a minimum and usually required by the lender. The student and co-signer must be U.S. Citizen or Permanent Resident. International students are welcome to apply for this type of loan; however a creditworthy U.S. Citizen or Permanent Resident co-signer is required.

The Facts regarding Alternative Student Loans:

  • You may borrow up to the cost of attendance minus any other financial aid received. However, some lenders may have a limit to the amount that you can borrow to help with loan indebtedness.
  • The interest rate on the alternative student loan varies by lender and can depend on the creditworthiness of the student and their co-signer.
  • Repayment on this loan will begin after you graduate or cease be enrolled at least half-time. Typically, you have 10 years to pay the loan back; however repayment terms vary by lender. There are no prepayment penalties so you can repay the loan earlier if you wish.
  • To apply for an Alternative Student loan, you must apply directly with the lender of your choice.  You can find a list of lenders by  visiting our Alternative loan lender comparison page. Once you have made a decision you will linked directly to the lender's website to begin the loan application process.
  • Alternative Student loans are the financial responsibility of the student, not the co-singer; however the co-signer is liable for loan repayment should the student fail to make monthly payments.