Private Supplemental/Alternative Loan
You may need additional funding for school and opt to apply for funding through a private lending agency, such as a bank or credit union. For most students, federal loans are a better option and should be utilized before private loans are considered. Alternative loans require a credit check and may have a higher, variable interest rate. They also do not offer the flexible repayment, consolidation, and loan forgiveness options that may be available with federal loans.
Oregon State University cannot recommend specific private lenders, but we have partnered with ELMSelect to provide a resource that allows potential borrowers to compare alternative loan options. Please visit ELMSelect to search available lenders filtered by your program type.
ELMSelect is a third-party company that works with college institutions to provide private loan lender information to help students and families compare private student loans. This will allow future borrowers to compare items such as interest rates, borrowing conditions and repayment options. The site also has a loan estimator to help determine monthly payments based on interest and principal borrowed balance.
The Federal Student Aid website provides some additional information on how to compare federal and private loans. More information about taking out a private loan may also be found on the Federal Trade Commission and Consumer Financial Protections Bureau websites.
Processing Information
Private student loans must be certified by the school you are attending. Below are some important notes regarding the certification process:
- The processing of your private loan request from the application to disbursement may take ~4 to 6 weeks, so it is important to plan ahead.
- We can only certify your loan for an amount that fits into your remaining expected cost of attendance, which can vary based on several factors like your degree type, enrollment status, other financial aid, and more.
- We may only certify if you are enrolled for classes at least for the first term of the loan period. We will use the loan dates sent by your lender and your enrollment to determine which terms to apply the loan towards.
- A single private loan cannot be split up between more than one school year. If you need funds split across multiple school years, your lender will need to send different loan certifications for each year.
- If you will be enrolled less than full-time, you will need to complete an Enrollment Revision form. This will inform us what your enrollment level will be each term in the academic year you are attending.
- If your loan is certified and you do not enroll or drop all your courses for a 100% refund, your private loan funds for the term will be returned to your lender and future disbursements canceled. We may also be required to return funds when your total aid/resources exceed your estimated cost of attendance (known as an overaward).
Once your lender sends us your private loan certification, you will receive a confirmation email from us with important information. You can check on the status of the loan certification in your OSU Financial Aid Portal (access at the top of this webpage) on the Home tab. After we certify the loan, your lender will have a mandatory borrower right-to-cancel period before they send us the funds. This period is approximately 10 business days, but may be longer as determined by your lender.