If you need additional funding to supplement your financial aid package, alternative student loans are an option. Alternative loans are private loans offered by lending institutions. They are not part of the federal government’s Stafford (Direct) Loan program.

We recommend that you first utilize your federal student loan eligibility before considering alternative loans. The interest rates and repayment terms with alternative loans are generally less favorable than those of the federal student loans.

The maximum amount you can borrow is the cost of attendance minus any financial aid you receive (for example, grants, work-study, federal student loans and federal parent loans). Be aware that the amount certified by Texas State may, in order not to exceed your cost of attendance, be less than the amount you requested on your initial application.

To be sure you choose the right alternative loan, you will want to ask lenders the following questions:

• Does my school have to certify the application?
• Do I need a cosigner?
• How strict are the credit requirements?
• How long does the application process take?
• How will I receive my loan funds?
• When will my first payment on my loan be due?
• Does the loan have an annual or aggregate limit?
• How much in total loan fees will I pay?
• What is the current interest rate and how is it calculated?
• How long is the repayment period?
• What are my repayment options?
• Do I have any deferment options?
• Do I have a grace period with this loan? If yes, how long?

Please remember that you will have to pay back these loans with interest, so only borrow what you need.