Alternative or private loans are available to creditworthy borrowers to meet the cost of a University of Maryland Global Campus education after other sources of aid have been depleted, or when federal loan limits have been reached. It is strongly recommended that you exhaust all federal, state and institutional funding options before borrowing a private loan. Federal student loans offer many benefits, such as fixed interest rates, no credit check, and several repayment and loan forgiveness options. Alternative student loans usually have higher interest rates than federal loans. Please note that some lenders may cover additional educational expenses including previous college balances.
Before applying for an alternative student loan, a student should first file the FAFSA to determine eligibility for all other forms of financial aid. If the Financial Aid Office receives a private loan certification for a student who does not have a current year FAFSA on file, the Financial Aid Office will contact that student via phone and email to encourage filing the FAFSA. If additional funds are still needed, the student can apply for a private alternative student loan in an amount up to the cost of attendance, minus any other financial aid the student will receive for the loan period.
Note: UMGC does not endorse any specific lender or group of lenders. The application for an alternative student loan is made directly through the lending institution. As a part of this process, UMGC Financial Aid must certify enrollment and other information for the student borrower.
How to Apply
Many lenders have alternative student loan options. Check with your bank or lending institution, or search the Internet for "alternative student loans" to find information on participating lenders, application requirements, interest rates, loan limits and repayment options.
Private Education Loan Self-Certification Form
New regulations now require alternative loan borrowers to complete, sign and return the Private Education Loan Applicant Self-Certification form to their lender before any funds can be disbursed to the student.
The purpose of this form is to promote informed borrowing and to give students information about financial aid and their eligibility for aid; as well as provide lenders of their education expenses and other aid received. To receive this form you may contact your lender or download the form directly from our Web site. Please note that this form does not change or replace the normal school certification process.
The Self-Certification form requests information about the borrower along with the cost of attendance (COA) for the loan period covered by the loan being requested. You are then required to deduct your estimated financial aid from the estimated COA, which will give you the estimated loan amount that you are able to borrow from your lender. This information may be retrieved in Financial Aid in MyUMGC or requested from the Financial Aid Office.
Estimate your cost of attendance at UMGC. You will need to select your program to view the cost-of-attendance information needed to complete Section 2 of the Private Education Loan Applicant Self-Certification.
Once you have calculated your tuition per credit hour and fees, if receiving financial aid, you may retrieve your estimated financial aid via Financial Aid in MyUMGC. By viewing your financial aid for the specific semester or aid year, you are now able to determine your eligible amount to borrow. To calculate your eligible amount, which is Section 2, question C, of the application, you will need to subtract your total estimated financial aid from your estimated COA.
|Resident Undergraduate Student COA:||
|Estimated Financial Aid:||
|Difference between A & B:||
You are then eligible to borrow up to $18,044 in an alternative loan.
Once you have completed the Private Education Loan Applicant Self-Certification form, you are required to submit it to your lender. Please note that you will not receive any disbursement until this form has been submitted to your lender.
As with all borrowing, students and parents must carefully consider the terms of an alternative student loan before borrowing. Some of the questions they should ask an alternative student loan lender might include:
- How much may I borrow?
- What are the fees associated with the loan?
- What is the interest rate on the loan?
- How is the interest rate calculated?
- What are the terms of repayment?
- How much will my payments be?
- Do I need a co-signer?
- Are there any enrollment requirements to receive the loan?
- Do I have to be in good academic standing in order to be eligible for the loan?
UMGC uses ELM Resources to administer its alternative program. This allows us to certify and receive your loan from your chosen lender through electronic funds transfer. Once you have been approved for your alternative loan, ELM will send us a notification, and we can certify your loan and receive your disbursement in a few days.
Visit ELM Resources to learn more about its offerings and to access your loan information.