Private Loans

Private educational loans (also called alternative loans) are designed to help students who need additional funding to meet educational costs. We strongly encourage students and families to complete a FAFSA each academic year and to make sure they have completed all the necessary steps to take advantage of any federal, state and institutional grants and scholarships for which they are eligible. You should also consider, and apply for, all Federal Direct Loan programs (Direct Student Subsidized and Unsubsidized, and Federal Direct Parent and Graduate PLUS loans) before applying for a private educational loan.

Lenders

Immaculata University has developed a private educational loan lender list based on the loan programs used most frequently by our students and their families, and the quality of products and services provided. Regardless of which lender you choose, your private educational loan application will be processed in a timely manner. Review the list of lenders, services, and benefits to evaluate which loan might be right for you.

**The lenders listed have been selected by Immaculata University based upon customer service and satisfaction, being mutually exclusive, and belief that their product information is in the best interest of our students and families to provide financing options. Both students and families are free to choose from any lender and/or guarantor other than those listed above for providing private educational loan funds with no unnecessary delay.  Please contact the Office of Financial Aid for any additional information about the lender/guarantor processing. If you have had previous private educational loans, you may wish to choose the same lender when applying for additional loans. 

Applying

Borrowers must contact the lender directly to apply. Consider the amount of financing you will need for the entire academic year when applying for loans. If you have little or no credit history, you will greatly improve your chances of being approved when applying with a qualified co-signer. Also, having a co-signer may result in better loan terms and conditions, such as a lower interest rate.

Note to co-signers: When co-signing a loan, you are responsible for the repayment of the loan if the primary borrower is unable to make satisfactory payments. Some lenders may have co-signer release options.

After the loan is approved, the lender will contact Immaculata University to request certification. Before the loan can be disbursed, you must complete the private loan disclosure process, which includes completing the private loan self-certification form and returning it to the lender. The entire private educational loan process, from application to disbursement, takes a minimum of 60 days. Be aware of the length of this process when considering using these funds to pay your Immaculata University bill.

Disclosure Statements

The Private Student Loan Transparency and Improvement Act, as a part of Regulation Z of the Higher Education Opportunity Act (HEOA) requires lenders to provide certain disclosure statements through the Truth in Lending Act (TILA), which is meant to allow borrowers and students choices for loans covering educational expenses. This allows for borrowers to receive three disclosure statements from the lender and requires a self-certification from the student between the time of a private educational loan application through the time funds are disbursed to the University.

  1. Application and Solicitation Disclosure (ASD) – The ASD provides general information regarding rates, fees, and loan terms for prospective borrowers. It also provides examples of loan costs, estimated interest rates, eligibility, repayment options, the total amount to be repaid based on the amount borrowed, and other federal loan alternatives that may be applied for. The ASD also informs borrowers of a federal student aid website for providing information on other types of loans and instructions for obtaining and completing the self-certification information.
  2. Approval Disclosure (AD) – Lenders are required to provide an Approval Disclosure to the borrower and co-signer (if applicable) prior to the loan consummation that indicates the borrower-specific rate, fees, and other terms for the loan being approved. The AD must also provide an estimated repayment schedule and terms based on the current and/or maximum allowable interest rates. Lenders must give the borrower 30 calendar days (Right of Acceptance Period) after the date on which the borrower receives the AD to decide to accept the offered private loan term presented. During the 30-day period of acceptance, lenders are prohibited from changing the interest rate on the loan, except those on the index of the loan (prime, libor, t-bill).
  3. Final Disclosure (FD) – The Final Disclosure is sent to the borrower after the loan terms are accepted and the school’s certification of eligibility for the loan has been received and at least 3 business days prior to the first disbursement of loan funds. The Final Disclosure gives the borrower up to a 3 business day right to cancel the loan. Within the 3 business days the borrower has the right to cancel a private educational loan without penalty and cancellations are only accepted in writing by the borrower and/or co-signer. Lenders are prohibited from disbursing funds until the expiration of the 3 day right to cancel. If the disbursement extraction process has started prior to the cancellation request, the lender will contact the school for fund return. The FD contains similar information as that included on the AD, including rate, fees, terms, and repayment schedules.
  4. Self-Certification Form – A lender must receive a completed and signed Applicant Self-Certification Form from the borrower. This is a standard Department of Education form. This form will include information about the availability of federal student loans, the borrower’s cost of attendance, estimated other types of financial aid, and it will also show a projected balance due.

 

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