Alternative Loans

Loan Information - Alternative Loans

Alternative loans are designed to meet the gap between the student's financial aid package and the actual cost of attending college. These loans are offered by private lenders and are somewhat more expensive than the Federal Direct Stafford Loan programs. You should always apply for federal student loans before using private lenders. The amount borrowed cannot exceed the cost of education, minus other financial aid. All private loan programs will do a credit check and/or an income-to-debt ratio check on either the borrower or co-signer or both.

It is important to compare the terms of the loans from several private lenders before choosing the lender and program that is best for you. View for a list of most commonly used private lenders at Lane.

The Financial Aid Code of Conduct for financial aid personnel establishes the provisions that bring Lane CC into compliance with federal law. The document may be viewed here

The following are some helpful tips to aid you in your research:

Helpful Tips: (not intended to be all inclusive)

  • What is the interest rate? How often will it change?
  • Is the interest rate capitalized annually or when repayment begins?
  • Are there loan origination fees and if so, how much?
  • Does the lender offer repayment incentives such as an interest rate reduction for automatic debit or consecutive on time payments?
  • Is a co-signer required? Is there a co-signer release option available?
  • Is there a grace period?
  • When will repayment begin?
  • What are the annual and aggregate loan limits?
  • How long is the repayment period?