private/alternative loan information

Office of Student Financial Services

**IMPORTANT INFORMATION ABOUT STUDENT LOANS**

Beginning with the Summer 2010 term, the University of North Alabama will begin participation in the FEDERAL DIRECT LOAN PROGRAM. Recent legislation eliminates the Federal Family Educational Loan Program (FFELP). UNA has made the decision to begin participation in the Federal Direct Lending Program effective with the Summer 2010 semester to ensure that our students have continued access to federal student loan funds. For more information about this switch, click here.

STUDENTS MUST BE ENROLLED IN AT LEAST SIX CREDIT HOURS TO BE ELIGIBLE TO RECEIVE FEDERAL STUDENT LOANS.

Alternative Loans are private loans made through lending institutions based upon the student's level of creditworthiness as determined by the lender. The student's level of creditworthiness affects the loan terms and if a co-signer is required. Private loans are more expensive than federal government loans and cannot be part of a federal consolidation loan in repayment. Generally speaking, students should consider private education loans only if Federal Stafford Loans are unavailable.

You can compare multiple loans using the FinAid Loan Comparison Calculator.

CERTIFIED Alternative Loan products require the University of North Alabama to report enrollment (full-time, half-time, less than half-time) and other financial aid information about the student, and these funds count toward satisfying the Cost of Attendance at UNA. Funds for an approved certified alternative loan are electronically sent to UNA by the private lender and then disbursed to the student's billing account on the same schedule as federal aid is disbursed.

Certified Alternative Loan funds are not reflected as Estimated Financial Aid toward the bill until UNA receives the funds the lender has actually transmitted to UNA by Electronic Funds Transfer. Your application must be made, loan approved and funds received from the lender by UNA far enough in advance of the first due date of the term to be counted as Estimated Financial Aid toward the charges. Otherwise your billing account will be due on the scheduled due date.  Failure to pay your student account balance by the scheduled due date will result in cancellation of your registration schedule.

You are free to choose any lender that participates in the Private/Alternative loan program and should apply DIRECTLY WITH THE LENDER. UNA does not recommend or endorse any lender and does not benefit in any way from your lender selection.

EFFECTIVE WITH THE 2012-2013 AID YEAR:  In order for your private loan to be certified by UNA, you must meet the Standards of Satisfactory Academic Progress and be registered for at least six hours in the semester for which the loan is requested.

Self Certifying Private Loans

The U.S. Congress recently mandated that private loan lenders require borrowers to complete an Applicant Self-Certification form when requesting any private educational loans. DO NOT SUBMIT YOUR SELF-CERTIFICATION FORM TO UNA STUDENT FINANCIAL SERVICES as we cannot complete this form for you. This information will be submitted to your chosen lender. If your lender has not provided you with a self-certification form, you may print one here.

The following SECTION 3 of the self-certification form must be completed from your latest financial aid award notice on your UNA Portal. If you have not been awarded, click here.

 

Section 3: Cost of Attendance and Estimated Financial Assistance

A. Student's cost of attendance for the period of enrollment covered by the loan

B. Estimated Financial Assistance

C. Difference between amounts A and B

 

How can you find this information?

Access your UNA Portal Self-Service Financial Aid.

1. Find and click the Financial Aid tab

2. Click on Award

3. Click Award For Aid Year

4. Must match the correct academic award year with the loan period

5. Click Award Overview

6. Complete Line A with the Cost of Attendance total amount

7. Complete Line B with the total from Financial Aid Award. This is the estimated financial assistance and is the total of all your Financial Aid, including any loans that you see already on your financial aid.

Reminder: You must sign the form and send to your lender. Always check to see if you can e-sign this form on your lender's web site.

What Type of Loan is Best? Private education loans tend to cost more than the education loans offered by the federal government, but are less expensive than credit card debt. Federal education loans offer fixed interest rates that are lower than the variable rates offered by most private loans. Federal education loans also offer better repayment and forgiveness options. Since federal education loans are less expensive than and offer better terms than private student loans, you should exhaust your eligibility for federal student loans before resorting to private loans.