Competitive Private/Alternative 
Educational Loan Programs

(This page was last updated on 04/17/2008 )

Contents:

• Overview
• Questions To Ask When Comparing Private Educational Loans
• Completing the Loan Application
  • General Information
  • Loan Periods
  • Disbursements
  • Loan Status
• Competitive Private Education Loan Lender List

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Overview

Over time, we have experienced the continual rise in the cost of financing a quality education.  As a result of increasing cost, many students are in need of additional funding to continue their education.

The programs listed below are a means of providing an alternative source of funding when all other forms of financial aid and scholarships have not met a student's cost of attendance.  The students who apply for these loans should have exhausted all other options prior to accepting any of the loans listed below. For further information, feel free to contact our office or the lender listed below.

Please understand that these are not federally guaranteed loans.

 

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Questions to Ask When 
Comparing Private Educational Loans

Private Loans:  get answers

(Our thanks to EdFund for permission to offer this publication to you.)

 

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Completing the Loan Application

General Information: 

• We strongly encourage you to complete a FAFSA before applying for a private student loan for two main reasons:

  • Completing a FAFSA allows the WSU financial aid system to automatically create a student budget for you which in turn expedites the process of determining your total loan eligibility.

  • Upon our receipt of your FAFSA information, you will automatically be offered the maximum you and your family may borrow under the federal loan programs.  Since private loans typically carry higher interest rates and fees than federal loans, you may then determine what combination of loans will best suit your needs.

• Private loans plus any other types of financial aid (including any federal loans), may not exceed the cost of attendance as determined by the school.  This is a federal regulation.

• If you choose a lender that requires a  paper application instead of an electronic one, you may see a section on the paper application where a financial aid counselor is required to certify your eligibility for the loan amount you are requesting.  This will not apply to you as a WSU applicant.  We will certify your private loan eligibility electronically via ELM.

• Please ensure that all other sections of the loan application are complete and that you enclose all requested materials. Forward your applications and enclosures to the lender, not the WSU Financial Aid Office. 

Loan Periods: 

• Loan periods must match the regular academic terms. 

• If you are or will be enrolling for the fall and spring semesters, you would complete your loan period for an academic year loan. 

• If you will enroll for only the fall or spring semesters you may request a loan for only those periods.

• Summer is always applied for as a separate loan period. 

• We will not certify a loan for a calendar year (January to December) or for a 12-month period of any combination (May to May, August to August, etc.)

Disbursements: 

• Many private/alternative loan funds are received by WSU electronically at which point the funds are credited to your student account.  

  • Just as with any financial aid, all allowable charges on your student account will be paid in full before a check for the remaining balance will be generated and be available for pick up at University Receivables.  

  • If you have direct deposit set up with University Receivables any remaining funds will be transferred to your designated bank account instead of creating a check.

• Some lenders will send your funds in the form of a paper check.  

  • We do record, in the financial aid system, all checks as they are received.  

  • After recording the check, we take it to University Receivables for disbursement.

  • If your eligibility for the loan has changed due to the receipt of any other financial aid, the entire paper check will have to be returned to the lender.  The lender will then be requested to issue a new check for the reduced amount and again send it to the University for disbursement to you.

• Federal regulations require that for an academic year loan, you would receive one disbursement in the fall and one in the spring term.

Loan Status: 

• Please contact your lender directly for all status updates and information about the results of their process.

• You may check the status of your private loan by using myWSU and checking your financial aid for a "miscellaneous loan".