What is the difference between private loans and alternative loans?
Private loans and alternative loans are two names for the same thing. These loans are offered by private lenders, not the U.S. Department of Education, to help cover college costs when federal aid isn't enough.
- Interest rates are set by the lender and are usually based on your credit.
- Terms and repayment options vary by lender.
- These loans are not eligible for federal repayment protections or forgiveness programs.
Note: Before applying for private (alternative) loans, always complete the FAFSA and explore federal aid options first. Federal loans often offer lower interest rates and more flexible repayment terms.