Private and Alternative Loan Programs
Educational loans that are not part of the Federal Student Aid program are typically referred to as "private" or "alternative" loans. These loans can be made to either the student or the parent and usually require a co-signer.
Before considering additional funding through a private loan program, MacMurray encourages students and their parents to utilize the maximum federal loan eligibility available to them. Comprehensive information regarding federal loan programs is available at www.studentaid.ed.gov. Once all federal opportunities have been exhausted, a private loan can assist the family in bridging the gap between college costs and traditional funding sources.
Terms and conditions of private loans (including approval, interest rates and fees) are dependent on the credit worthiness of the borrower or the co-borrower. The borrower as a consumer should carefully review program details before selecting a private loan program.
- Eligibility — The school must certify enrollment and eligibility based on total cost of education minus other financial aid received. The borrower and co-borrower must be credit worthy as determined by the lender.
- Interest rates and fees — The interest rates on private loans can vary depending on the type of loan, the lender, and the credit history of the borrower or co-borrower. The interest rates are variable and have no cap. Interest rates and fees for students who do not have a co-borrower will usually be higher.
- Repayment — Repayment of a private loan can be deferred until six months after the student ceases to be enrolled at least half time; however, the interest will accrue during the in-school period, which will increase the amount of the loan. Some lenders may require that you make interest-only payments while in school.
Private loan borrowers must complete a Self-Certification Form. Your lender will provide you with this form and instructions on how it must be completed (electronically or by paper). All Self-Certification Forms for private loans should be sent to your specific lender and not the Financial Aid Office.
MacMurray College will process private loans from any lending institution. However, we have provided our historical list of lenders used here over the past several years. This list is not all encompassing, and students are encouraged to find their best option when using private loan financing. Students are encouraged to read all terms and conditions before applying for a private loan. The lenders in this list appear in alphabetical order. We also suggest visiting www.finaid.org. This will help students and parents compare many lender rates, terms, and benefits.
|Discover Student Loans||www.discoverstudentloans.com||877-728-3030|
|Midwest Bank of Western Illinois||www.sifc.com||800-521-7714|
|Wells Fargo EFS||www.wellsfargo.com/student||877-599-6788|
Student Lending Code of Conduct
MacMurray College is committed to provide students and parents with the best information regarding the private loan process. You can visit our Code of Conduct page for more details.