Alternative Student Loan Options
Alternative Student Loans
Eligibility for alternative student loans is based on credit-worthiness and ability to repay, not on financial need. While alternative student loans are borrowed by the student, most private loans require a co-signer and offer deferment of principal payments while the student is enrolled.
We recommend that students and families read "What to consider before selecting an alternative student loan" to become more familiar with this type of loan.
Alternative Student Loan Lender List Disclosures
In an effort to provide better counseling services to our students, Allen College has created a preferred lender list. Federal and state law mandates that we must provide the following disclosures in association with this process:
- Students may borrow from any lender they choose and are not required to use a lender on Allen College's preferred lender list.
- The lenders on the list were selected based on internet research conducted by the Financial Aid Office and through historical review and student feedback.
- Allen College evaluated and selected lenders based on customer service, no hidden fees (full disclosure), electronic routing and disbursement, ILINK routing and processing, historical use by current and former students, and lender reputation.
- This list does not contain affiliated lenders.
- Allen College has a published a student loan code of conduct that must be followed.
Maximizing Federal Financial Aid First
Federal and state law also mandates that we disclose the maximum amounts of Federal Grant and Loan assistance that are available. Maximum eligibility for Federal financial aid is based on the results of the FAFSA and is outlined on the student's award letter. Federal financial aid has better terms and conditions than private student loans and we strongly encourage students to utilize that aid first. The following is a list of maximum annual awards in each program:
- Pell Grant - $5,775
- SEOG - $1,500 (Award amounts are dependent on federal funding with a typical Allen College award maximum being $300)
- Stafford Loan - $5,500 (freshman class); $6,500 (sophomore class); $7,500 (junior class and above); Independent students can receive an additional $4,000 (freshman and sophomore class) or $5,000 (junior class and above); $20,500 (graduate/doctoral level)
- PLUS Loan - a credit-based loan for graduate or professional students and parents of dependent undergraduate students with a maximum determined by the difference between cost of attendance and the student's financial aid award.
Alternative Student Loan List
Preferred Lender Arrangements are required to be reviewed annually to ensure that competitive products that are in the best interest of the student borrower are being offered. Please provide us with feedback regarding any positive and/or negative aspects that may have been experienced when working with a particular lender. Feedback can be left at FinancialAid@allencollege.edu.