Occasionally families may need to borrow additional funds to help cover the cost of a student’s education.
Before considering a Private Alternative Loan, we strongly encourage families to complete the FAFSA. Based on FAFSA results, 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 a Private Alternative 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 historical list of lenders chosen by our students. If you wish to use another lender that is not on this list, that is fine with Bethany.
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. View private lenders page here.
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. A Private Alternative 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 4.248% origination fee on a Parent PLUS loan, where a Private Alternative loan has a 0% origination fee.
4. What is the Interest Rate?
- The interest rate on a Parent PLUS loan is 7.6%. This is updated every year on July 1st. Interest rates on a Private Alternative 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 Private Alternative loans as well, but not always. Interest will accrue on both loans during that deferment period.