Occasionally families may need to borrow additional funds to help cover the cost of a student’s education.
Before considering a Private Educational Loan, we strongly encourage families to complete the FAFSA. Based on the FAFSA, the Financial Aid Office will provide a comprehensive award including grants, scholarships, Federal Work Study, and Federal Direct student loans.
To assist you in your choice of Private Educational Loans, Bethany College has identified lenders that our students have borrowed from in the past five years and who are still providing Private loans. This is not a list of recommended lenders but rather a way to compare and select a lender that best fits your needs. However, if you wish to use another lender that is not on this list, you have the right to do so.
A link to additional lenders and their terms is available on the private lenders page for families who would wish to look at more options. Lenders are listed in alphabetical order, and no preference is given to a particular lender.
Review all terms and conditions carefully, including loan disclosure statements, before signing the loan agreement (promissory note).Once you have selected a lender and your loan is approved, we will process the loan for you.
Some Items to consider:
1. Whose name is on the loan?
- Parent PLUS loan is in a Parent’s name, so the parent is responsible for repayment. An Alternative Education loan is typically in the student’s name, so the student is responsible for repayment
2. Will the student need a co-signer?
- A student may need a co-signer. Some lenders require a student who has not established credit history to obtain a co-signer for approval.
3. Is there an origination fee?
- There is a 4.292% origination fee on a Parent PLUS loan, where an Alternative Education loan has a 0% origination fee.
4. What is the Interest Rate?
- The interest rate on a Parent PLUS loan is 6.84%. This is updated every year on July 1st. Interest rates on an Alternative Education loan can be fixed or variable and vary between lenders, and are often based on the credit history of the borrower and co-signer.
5. When will repayment begin?
- Parent PLUS loans can be deferred until after a student graduates. This is true of most Alternative education loans as well, but not always. Interest will accrue on both loans during that deferment period.