Federal School Code: 003425
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Alternative or private loans are designed to help students who need additional assistance with educational costs. In most cases, it is advantageous for students to pursue Unsubsidized Federal Stafford Loans and for parents to pursue Federal PLUS Loans (or Grad PLUS Loans for graduate students) before seeking alternative loans. A major advantage of these programs is that the federal government caps the interest on the loans. Additionally, alternative loans typically do not offer the same benefits as federal loans, such as consolidation, service cancellations and military repayment.

If assistance beyond what is available through the federal loan programs is desired, there are a number of private lenders who offer alternative loans to cover educational expenses. Loan approval is generally based on creditworthiness and ability to repay - for students, a credit-worthy, employed cosigner may be required. Each lender offers different rates, fees, repayment terms, and approval requirements. To get the best rates and terms, it is strongly suggested that you obtain a cosigner with a good credit rating.

How to Apply for an Alternative Loan

During the 2008-09 academic year, Clemson University students used the following alternative loan programs: (Clicking the links will take you to the lenders' web sites).

The above lenders are not recommendations by Clemson University, merely a listing of lenders our students have used. You are not obligated to use them. Please note that the credit check performed by many lenders expires after 90-120 days. Therefore, you should not apply for an alternative loan more than 3 months prior to the start of the loan period. However, due to processing time, you should apply as soon as possible within the 3 month window.

In order for funds to be available for payment purposes, applications should be submitted by:

  • June 1 for the fall semester
  • November 1 for the Spring semester
  • March 1 for Summer sessions

Disbursement

Most alternative loan disbursements are made via Electronic Funds Transfer from your lender to Clemson University. These funds are applied to the student's account with any excess, after all University fees are satisfied, being released to the student.

Changing Loan Amounts

You are encouraged to only borrow needed funds. If the loan approval is more than you desire, you may reduce the amount by calling the Financial Aid Office at 864-656-2280, emailing the Financial Aid Office at finaid@clemson.edu, or following the directions provided by the lender on the disclosure statement you receive.

Attendance at Prior Institutions

We strongly encourage students who have borrowed through the alternative loan programs at other institutions prior to attendance at Clemson to retain their previous lenders. This will avoid making multiple loan repayments in the future.

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