Alternative Loans

Alternative loans terms such as interest rate, origination fees, borrowing limits and length of repayment are based on student/cosigner creditworthiness. In order to receive the best possible loan terms, it is to your advantage to have a cosigner. Ask questions when considering an alternative loan. These questions should include, but are not limited to:

• What is the minimum/maximum amount that I can borrow?
• What is the lowest interest rate and fee combination that you offer? How can I get that rate? Is the rate only for a limited period (an introductory rate), or for the duration of the loan?
• If the interest rate you are offering is variable, is there a limit on how high the rate can go? How often is the interest rate adjusted, and how is it determined?
• Is a co-signer required?
• How often do you capitalize the interest?
• What rate can I get on a fixed-rate loan?
• How long will I be repaying the loan? Is there any penalty for paying off the loan early?
• When do I have to start making payments?
• How long can I defer payments while I'm in school? What if I go to graduate school after my bachelor's degree? If I do not make payments while in school, how much will I owe when I do start making payments?
• Will I lose my on-time-payment discount with just one late payment or if I ask for a change in the payment schedule? What proportion of your borrowers actually get the discounts you offer?
• Are your discounts guaranteed, or are they subject to change later?
• If I have difficulty making payments (“economic hardship”), do you allow me to defer or reduce my payments temporarily? Under what circumstances, and for how long?

Source:Project on Student Debt of the Institute for College Access and Success

Student as the borrower:
Alternative Lender List

The lenders listed on the following page are frequently used by UMM students and offer online services that are compatible with ELM, an electronic loan management system used to expedite loan application processing and disbursements. UMM will process all loans, regardless of whether the lenders appear in the list.

When requested, provide your lender with these identifiers:

• Name of postsecondary institution : University of Minnesota, Morris
• Federal School Code : 002389-00