Alternative Loans from Other/Private Lenders

If you do not have enough savings or other resources available to help you cover your cost of attendance, or if you do not qualify for federal or state financial aid, you have the option to apply for an alternative loan from a private lender.

Alternative loans are student loans offered through commercial lenders. Most programs require that you have good credit or that you apply with a credit-worthy cosigner. Your ability to borrow, and the interest rate of the loan, depend on your (and/or your cosigner's) credit score.

Alternative loans have interest rates that vary over the life of the loan, and they may also have expenses and fees that the lender charges, in addition to the amount you borrow. These loans may also have less favorable repayment terms than federal or state loans, and often they cannot be consolidated with federal loans once you are done with school.

For these reasons, it is in your best interest to complete the Free Application for Federal Student Aid (FAFSA) and to exhaust your federal aid eligibility before applying for an alternative loan. Your FAFSA will determine your eligibility for all types of aid, which may reduce the amount you need to borrow from an alternative loan.

Because every student's financial situation is different, and because lenders reserve the right to change qualification requirements for their programs at any time, UMD cannot recommend a loan program for you. It is up to you and your cosigner to determine which loan best meets your needs. Always keep in mind that borrowing responsibly will help minimize your debt load once you are out of school.

Please refer to the Alternative Loan Guide for additional information about applying for an alternative loan. Please note: Your choice of lenders will be limited if you are enrolled less than half-time or need loan funding to pay for a past-due balance.

Alternative Loan Programs Most Commonly Used By UMD Students

• CitiAssist
• Sallie Mae Smart Option Student Loan
• US Bank No Fee Loan
• Wells Fargo Collegiate Loan

This is not intended to be a comprehensive list of every alternative loan program, nor is it intended to recommend these programs over those offered by other lending institutions. Because lenders reserve the right to change their loan programs, the information on each lender's website is considered to be the most current and will be used to determine eligibility in the event the information provided on UMD's website conflicts with the lender's web site. If you are considering an alternative loan, you can apply with the lender of your choice; you are not limited to those lenders listed here. UMD cannot recommend a loan program for you.

After you chose a loan program, you can apply online or by phone directly with the lender. When you and your cosigner complete the lender's application process, the lender will contact UMD for electronic certification of your application. Once your application is certified and approved, your loan funds will be sent to UMD. Funds from most alternative loan programs will pay electronically directly into your UMD account toward your tuition and fees. However, if your lender sends a paper check, when it arrives you will be contacted via your UMD e-mail account to claim your funds in person at the Student Assistance Center. See additional information on Disbursement of Funds.

When applying online, it is important to apply for the correct type of loan. Because UMD is a "Direct" lender, you cannot apply for the Stafford Loan (students) or PLUS Loan (parents) through a commercial lending institution. Federal funds from the Direct Stafford Loan and the Direct PLUS Loan come to UMD students through the William D. Ford Federal Direct Student Loan Program.

The Office of Financial Aid and Registrar does not intend any specific endorsement of these loan products by including them on this page. The University of Minnesota Duluth neither receives nor accepts any incentives, financial or otherwise, to list lenders on this page.