A private/alternative loan (BALP) is a consumer-based, non-need-based loan. The interest rate for an alternative loan is usually considerably higher than the rate for a federal loan. Depending on your lender there may be no payments required while you are enrolled half-time or more.
Things You Should Know Before Apply for an Private/Alternative Loan
- Apply for FASFA (Free Application for Federal Student Aid).
- Even if a student has a high EFC (Expected Family Contribution) FASFA will offer federal loans options to students without SAP issues.
- Federal loans may offer lower interest rates and better repayment options than private/alternative loans.
- Private/Alternative loan interest rates are credit-based.
- Borrowers and/or co-signers with a good to excellent credit score are recommended.
- Private/Alternative loans in combination with all other financial aid and scholarships cannot exceed the student’s budget.
- Students are required to be enrolled in at least a half-time standing.
- Half-time for undergraduates is 6 credits.
- Half-time for graduates is 5-6 credits.
- All first time private/alternative loan borrowers are required to complete a first time entrance counseling. This entrance counseling is specific to private/alternative loan borrowers and is not the same as the Stafford loan entrance counseling.
- Students with a history of multiple SAP (Satisfactory Academic Progress) issues will be required to complete the appeal process.
How to Borrow a Private/Alternative Loan
- The borrower will apply directly with their lender of choice.
- Borrowers have the right to select any lender. It is important to compare interest rates and borrower/repayment benefits.
- Lenders most often selected by the University of Nevada, Reno, private/alternative loan borrowers
- If you do choose another lender, you will suffer no penalty for selecting your lender of choice is a link to the lenders most often selected by the University private/alternative loan borrowers.
- After you apply, the lender will contact our office electronically to request certification.