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Undergraduate Alternative Loans

Undergraduate Alternative Loans

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 encourage you to file the Free Application for Federal Student Aid (FAFSA) in order to be considered for all other available aid programs before considering alternative loans. We recommend that you first utilize any grants or scholarships, as well as your work study and 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 loan programs.

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 consider the following:

  • 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?

Texas State does not recommend any specific lenders for private alternative loans. If you believe that an alternative loan may be best for you, we recommend comparing the loan products and lenders to find the best interest rate and repayment options for your situation. Please remember that you will have to pay back these loans with interest, so only borrow what you need. Texas State uses ELMSelect as an online, lender-neutral platform to display a historical list of lenders and education loan products that our students have used over the past award year. These lenders have not been ranked and are presented in no particular order.

Visit ELMSelect to view alternative loan options.