Alternative Student Loans
Alternative loans are private loans. The terms for these loans vary widely as do the eligibility criteria. These loans are not connected to the University of Alabama in any way. You will be entering into a private agreement with the lender. A web search will provide you with numerous private options, but note that UA does not recommend any specific private lenders.
You (and your co-borrower, if applicable) should carefully research the options and apply for the alternative loan that best suits your needs. If you wish to take out a private educational loan, you must provide any documentation requested by the sponsor of the loan and follow the application procedure that is specific to that loan.
Types of Lenders:
- Private Student Loan Companies: Many private lenders offer loans specifically to international students.
- Banks: Some banks offer student loans for international students.
- Global Loan Programs: Offer loans to students from various countries.
Cosigner Requirements:
- Most lenders require a U.S. citizen or permanent resident cosigner who will co-sign the loan. This is because international students typically lack a credit history in the U.S.
- Some lenders offer no-cosigner loans: A few companies offer international student loans without a cosigner. They evaluate eligibility based on factors like academic success and career potential instead of credit history.
Eligibility Requirements for No-Cosigner Loans:
Lenders determine their own criteria for loans without a cosigner, these might include the following:
- Attend a school approved by the lender.
- Be from a country on the lender’s approved list.
- Be less than 2 years from completing your degree.
- Reside in the U.S. during your studies.
- Have the proper visa status to study in the U.S.
- Be able to verify your identity.
