Alternative Loans

Alternative education loans (also known as private education loans) are loans that are often used help bridge the gap between a student’s cost of attendance and the amount of federal, state and institutional financial aid that a student is awarded.  Alternative loans are credit based loans that are offered by private lenders and often require a good credit history and/or a co-signer with a good credit history.  These loans are usually more costly than federal education loans with interest rates and repayment terms that usually are not as advantageous to the borrower.

UNCG strongly encourages all students to complete the FAFSA and apply for federal and state programs before applying for an alternative loan.  Federal loans (Student, Perkins and PLUS) should always be the first option to consider when borrowing money to finance an education.  If you are considering an alternative loan, you should carefully evaluate each loan program to determine if it best meets your needs.

If you are planning to file a FAFSA it is best to wait to apply for an alternative loan until you receive your financial aid award from UNCG so you can see what financial aid you may be qualified for.

Our office will certify an alternative education loan from the lender of your choice if the loan’s eligibility requirements are met.  However, if you choose not to apply for federal aid and want to use an alternative education loan to pay for school, the Alternative Loan Consent Form needs to be submitted to our office before certification can take place.

For more information on alternative loans visit