Wells College recommends that students exhaust their federal and/or state financial aid resources first before considering other financing options with the use of the Free Application for Student Aid (FAFSA). The reasons we request students complete the FAFSA are:
· to determine if your are eligible for grant (non-loan) funds
· to offer the least expensive student financing options through the Federal Loan Programs
After exhausting all federal, state and institutional funds, many students are still left with educational costs. To assist students in paying for these expenses, banks and lenders provide private alternative educational loans.
Alternative (Private) Loans are in the student’s name. You have a right to use the lender of your choice. If the alternative loan program you choose requires a school certification, the student can borrow up to the cost of enrollment .
Private education loan programs:
Are not government-sponsored
Are not regulated on interest rates, deferment or payment options
Often require a co-signer
Interest rates are determined by the lender (typically depend on borrower and co-borrower’s credit worthiness)
We strongly recommend that you carefully read the terms of your Alternative Loan to know exactly what costs will be involved. We also recommend that you contact the lenders directly for any questions you may have so that you fully understand what will be required and what total you will be repaying.