Private Alternative Loans
Private alternative loans are available for students who are not eligible for federal loans* for any of the following reasons:
- Enrolled less than half-time (2 credits per term)
- Enrolled in a certificate program
- Non-matriculated
- Not a U.S. Citizen or Permanent Resident
- Borrowing funds for a loan period with an end date in the past
*Note: Students who are eligible for federal loan assistance are strongly encouraged to review the Department of Education's publication Federal Aid First and learn about the Federal Loan programs before applying for a private educational loan. Federal loans generally have better benefits, more flexible repayment options, and lower, fixed interest rates.
Interest rates for private/alternative loan programs are usually variable, may change quarterly, and are set by each lender based upon their established parameters. Approval ratings also vary from lender to lender. Some students may be required to apply with a creditworthy cosigner. We recommend that students compare interest rates and repayment options before applying for a private alternative loan. Click here for a list of lenders that offer private student loans. Student Financial Services will process loans from all lenders.**
As with all student loans, the amount borrowed must be for educational expenses and cannot exceed (including all other sources of aid) the Cost of Attendance (2011-2012 or 2012-2013) for the loan period. The loan period for which funds are borrowed must be a time during which the student was, is, or will be enrolled at NU. Please check directly with the lender regarding the eligibility requirements for their private student loans.
The application process for most private alternative loans is completed online at the lender's website. Your private education lender will require you to complete a Private Education Loan Applicant Self-Certification Form. You should use the version the lender provides as it may contain pre-populated information, but you may use this version if your lender does not provide you with one.
When all requirements are complete and the loan is approved, the student may provide Student Financial Services with the loan amount, the loan period, and the lender's full name and address. Most lenders require school certification verifying the student's enrollment status during the loan period and confirming that the requested loan amount is within the student's Cost of Attendance.
**Northwestern University adheres to the Code of Conduct as established by the Higher Education Opportunity Act as well as the National Association of Student Financial Aid Administrators' (NASFAA) Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals. Click here to view Northwestern's Financial Aid Code of Conduct.
