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Private or Alternative Loans

Private or alternative loans are offered through a variety of lending institutions, but they are not considered federal loans. These loans should only be considered when all other types of aid have been exhausted. Loan amounts may not exceed the student’s remaining financial need up to the cost of attendance, $5,000 a semester, or $10,000 an aid year.

Eligibility Requirements:

  • You must meet the eligibility requirements for financial aid and have received an Award Notification in your student email.
  • You must have a credit score high enough to qualify for the loan or a cosigner with an eligible credit score.
  • Each lender may have additional requirements. Follow the application procedure below to find what loans you may be eligible for and the eligibility requirements.  

Be sure to pay attention to interest rates, repayment obligations, and repayment plan options before applying for a private or alternative loan. If you have questions regarding the loan, contact the loan provider.  

How to Apply:

You may apply for a private or alternative loan at any bank of your choice, but doing so will significantly delay the time frame in which you receive those funds. We recommend you follow the steps below to apply for the most common loans taken out by Madison College students.

  1. Complete Borrowing Essentials to learn about borrowing money.
  2. Once completed select Continue.
  3. Read and understand the Loan Product Disclosures and select Continue.
  4. Use the filter option to select undergraduate and select filter Loans.
  5. Compare the different options of student loans that are provided.
  6. Once you find a loan you are interested in, select Apply.
  7. Provide the lender with all information required and submit your application.
  8. The lender will receive your application and review to determine if you qualify. They will contact you regarding the outcome of the loan. If your loan is approved, the lender also notifies the Financial Aid Office at Madison College.
  9. The Financial Aid Office will review your account and if you meet the eligibility requirements, your loan will be certified.
  10. It will then take at least 14 business days due to the Truth in Lending Act for the loan monies to come to Madison College.
  11. View disbursement for information regarding after the money is received.

Questions? Visit askMadisonCollege to view frequently asked Financial Aid questions, submit a Financial Aid Category question, access the Financial Aid Tutorials for step-by-step instructions on related processes, or contact Madison College Financial Aid at (608) 246-6170.