Free or lower-cost Title IV federal, state, or institutional aid may be available in place of, or in addition to, a private education loan. You are strongly encouraged to pursue the availability of free or lower-cost financial aid first.
Alternative loans are private educational loans in which the student is the borrower; however, a cosigner is usually required depending upon the creditworthiness of the student.
When you click on the link below you will leave the Saint Joseph’s University website and access the ELMSelect website hosted and maintained by ELM Resources, which provides information about educational loans. Saint Joseph’s University does not control the ELMSelect website and expressly disclaims all liability for any damages to you as a result of your use of or reliance on the information on the ELMSelect website. Saint Joseph’s University does not promote, endorse, or recommend any loan products or lenders that are available through the ELMSelect website. Your use of the ELMSelect website is governed by third party terms and policies, including privacy and data practices, which are not those of Saint Joseph’s University.
Lenders listed under Saint Joseph’s University on the ELM Select website are those our students have successfully borrowed with over the past several years. Students and families have the right and ability to select the education loan provider of their choice, are not required to use any of the lenders current students utilize, and will not be penalized for choosing another lender. Saint Joseph’s University will process a loan with any lender a borrower chooses.
Click here to view alternative loans on ELMSelect.
Terms and conditions of loans depend greatly on the credit score of the borrower and cosigner. It is important to be a good consumer and explore all of the alternative loan options. In fact, many loans have different interest tiers and repayment options. It is important to determine what tier you qualify and what your interest rate will be. In general, interest rates are based upon a standard rate, then a percentage (%) is added. Example interest rate: 3-mo Libor + 3.9% would be 4.16% (.26% 3-mo Libor + 3.9%).
Remember, all loans are certified for the full year – ex. Fall/Spring or Fall/Spring/Summer. Loans are not processed for one term only.
The Fair Isaac Corporation, the creator of the FICO score, recently clarified that shopping for the best priced private educational loan does not necessarily lower an individual’s credit score as long as the credit inquiries are made within a time frame of 30 days. We recommend that you shop for the loans during a 30-day period through June and July. Once you have decided on a loan and have sent a signed Master Promissory Note (MPN) along with all required paperwork to the lender, certification information is then provided to the University. This certification process begins in mid to late July.
The following are questions we suggest asking when speaking with lenders:
- What is my interest rate?
- How often will the interest rate change?
- Are there any fees with this loan? If so, what are they?
- When do I begin repayment of principal?
- When do I begin repayment of interest?
- If I submit a payment late, can the lender raise my interest rate?
Changes to Alternative Loan Regulations
Alternative Loan Borrowers – The Federal Truth-In-Lending Act has changed the regulations necessary for borrowers to receive private educational loans.
- Please note that the processing time of an alternative loan from the time you apply to the time funds might be made available is approximately 4 to 6 weeks.
- The Federal Truth-In-Lending Act has changed the regulations necessary for borrowers to receive private educational loans. Specific adjustments include providing three detailed disclosures to the borrower throughout the loan application and approval process, obtaining a borrower self-certification form and providing a three-day “right of rescission” period in which the student may cancel the loan.
- Borrower Self-Certification – The borrower must submit a signed self-certification form to the lender. This form, which is completed and signed by the student, must show the student’s cost of attendance, expected family contribution, estimated financial assistance, total aid and the maximum private loan amount allowed.