Frequently Asked Questions About Alternative Student Loans

1. Who is eligible for the Private Student Loan?
2. What information do I need to apply?
3. What are the fees for the Alternative Student Loan?
4. What are the repayment options?
5. Is the Alternative Student Loan need-based?
6. What do I do if I have bad credit?
7. Who is a qualified co-signer?
8. What are the obligations of a co-signer?
9. What do I do if my school/program is not listed?
10. How much money can I borrow?
11. Can I get a paper application?
12. How long does it take to get the Alternative Student Loan?
13. What is the LIBOR mentioned in the rates?
14. I received a message saying I was declined, what do I do?
15. How high can the interest rate go?
16. Is the interest tax deductible?

1. Who is eligible for the Alternative Student Loan?

This loan is available to US citizens and permanent residents attending schools within the United States of America or international students with a US citizen cosigner. A co-signer is strongly recommended for US citizens and is required without exception for international students . You or your co-signer must meet the credit guidelines.

2. What information do I need to apply?

The following information will be needed when you apply. When you apply with a co-signer, you will need the same information for your co-signer.

• Full Name
• Social Security Number
• Date of Birth
• Permanent Address and number of years at that Address
• Monthly Rent or House Payment
• Home Phone Number
• Occupation / Position
• Employer and How Long Employed
• Business Phone
• Gross Annual Income
• Proof of enrollment: tuition invoice, letter of acceptance, etc.
• Reference: Nearest Relative or Friend Not Living with You, Must be Different than Reference for Co-signer (Name, Address, Home / Business Phone Number

3. What are the fees for the Alternative Student Loan?

Origination fees vary based on the loan you are applying for, your credit rating, and the repayment option selected. Please see our Rates and Qualifications page as well as individual program pages for more information.

4. What are the repayment options?

K-12 Repayment Terms

• Immediate repayment after loan disbursement
• No pre-payment penalties
• Minimum monthly payment as low as $25 (click here for more detailed information)

Undergraduate Repayment Terms

• Choose from 3 different repayment options, including payment deferral until six months after graduation or you leave school
• No pre-payment penalties
• Minimum monthly payment as low as $25 (click here for more detailed information)

Graduate Repayment Terms

• No pre-payment penalties
• Minimum monthly payment as low as $25 (click here for more detailed information)

Continuing Education Repayment Terms

• No pre-payment penalties
• Minimum monthly payment as low as $25 (click here for more detailed information)

When you apply online, you can specify which option you would like.

5. Is the Alternative Student Loan need-based?

No! The Alternative Student Loan is a credit-based loan, relying on the credit rating/score of the student (or co-borrower, if applicable) or parent (for K-12 borrowers). This is one of the best features of the Alternative Student Loan - when Uncle Sam says no even though you have good credit, we say yes!

Do you know what your credit score is? Click here to request a credit report!

6. What do I do if I have bad credit?

First, review your credit repair options. There are several tutorials online which offer helpful credit repair tips - visit StudentPlatinum.com for more information. If you cannot repair your credit quickly, you can still receive the loan with a qualified co-signer.

Apply now with a co-signer!

7. Who is a qualified co-signer?

A qualified co-signer is any person with at least US$18,000 in annual income over a two-year history, plus a good credit history (no late payments, defaults, bankruptcies, or adverse judgements) at least two years long, who has been a US citizen/permanent resident (Green Card) for at least two years, and a debt-income ratio less than 40%.

8. What are the obligations of a co-signer?

Co-signers are in fact co-borrowers and are jointly and severally liable for the loans. If the primary borrower has poor credit or no credit, a co-signer guarantees the lender that if the primary borrower does not make payments, the co-signer will assume the loan obligations and make payments on it in the primary borrower's place.

9. What do I do if my school/program is not listed?

Contact your school's financial aid office and have the Director of Financial Aid (or equivalent administrator) apply to TERI for school certification. School certification can take as long as 30 - 60 days, so if you know you will need a loan in a few months, contact your school now!

Click here to check if your school is eligible!

Are you a financial aid professional at your school? Click here for information about how to become certified to offer our loans!

10. How much money can I borrow?

Up to $30,000 (USD) per academic year, with a maximum total of $130,000 (USD) overall. Undergraduate and graduate borrowers may not borrow in excess of the estimated annual expense of the program they are enrolled in.

11. Can I get a paper application?

You can apply online.

12. How long does it take to get the Alternative Student Loan?

It varies depending on several factors:

• Your credit history and rating
• Your school
• The amount of funding you have requested

Generally, loans are approved usually between 5 and 10 business days, but extenuating circumstances can prolong the process up to 25 business days.

To improve the chances of approval and potentially expedite the loan approval process, we recommend applying with a qualified co-signer.

13. What is the LIBOR Index mentioned in the rates?

London Inter Bank Offering Rate (LIBOR) Index is an average of the interest rate on dollar-denominated deposits traded between banks in London. The LIBOR Index is an international index, which follows the world economic condition. It allows international investors to match their cost of lending to their cost of funds.

14. I received a message saying I was declined, what do I do?

Simple! You need to locate a creditworthy cosigner and re-apply online. Doing so will improve your chances of approval. If you applied with a cosigner, apply with a different one.

15. How high can the interest rates go?

The interest rates for private alternative student loans are based on two variable factors, the LIBOR Index rate and your credit rating. Your credit rating makes the most difference! If you have less than perfect credit, your rates will be higher by as much as 3%, so it is strongly advised that you get a qualified co-signer.

16. Is the interest tax deductible?

Yes! Student loan interest - for federal or private student loans - is deductible from your adjusted gross income.

Do you have a question you need to have answered? Contact us!