Private credit or Alternative loans are private loans available through lending institutions to help bridge the gap between your educational costs and available federal and state grants and federal student loans. These loans are credit based loans that require you to have established credit or a co-signer. Private credit loan programs differ from lender to lender so it is important that you know the terms and conditions of the loan and your rights and responsibilities as a borrower. Always apply for Federal Stafford loans first. Stafford loan interest rates and repayment options are better.
Always remember that a loan is a debt that you must repay. Learn the ABC's of student loans – Always Borrow Conservatively!
The Truth in Lending Act, section 128, requires lenders to provide detailed information to the borrower outlining the terms and conditions of the private loan through the following disclosures:
- Disclosures Required in Private Loan Application and Solicitations – must be provided upon application of the loan;
- Disclosures when Private Loan is Approved – must be provided when loan is approved by the lender;
- Student Self-Certification – form must be completed by the student and returned to the lender prior to disbursement
of the loan; and
- Disclosures when Private Loan is Consummated – must be provided when the loan is scheduled for disbursement.
For more information and to apply for a private credit loan, visit Great Lakes Fast Choice.