Alternative Loan Programs
We strongly encourage you to carefully evaluate the terms offered by lenders for your alternative loan. Many lenders require that you utilize the Direct Stafford Loan prior to applying for an alternative loan. Review the rates for both the Direct Stafford and Direct Parent PLUS loans at these interest rates are set by the government. It is essential that you educate yourself about the relative terms and benefits offered by lenders to ensure the best possible terms for your personal circumstances.
Families should evaluate the various terms and features associated with each loan. Among the terms and features to consider are the following:
- Loan Requirements
- Repayment terms (may occur while student is currently enrolled)
- Interest rates
- Loan benefits before and during repayment
- Deferred payments
- Rate reductions
- Principal reductions
- Auto debit rate reductions
The Higher Education Act of 2008 sought to protect student loan consumers and amended the Truth in Lending Act (TILA) and established disclosure requirements for private education loans. ( Regulation Z)
As a result of this change all private lenders are required to collect from an applicant a self certification form before a private loan can be processed. The form is designed to remind students about other sources of financial assistance and federal loan options. The form seeks to collect from the student their cost of attendance and expected financial assistance at MMC. This information will be used by the lender as part of the eligibility determination process.
Marymount Manhattan College is not a lender and is not engaged in rendering legal, accounting, financial planning, or other professional services. We recommend that you consult with your own expert advisors before making educational financing decisions. Students and parents have the right and ability to select the education loan provider of their choice.
Private Loan Process
Step 1: Select a Lender
Students need to do their home work and research lenders to see what lender offers them the best options in terms of interest rates, fees, repayment options and disbursement options (check or EFT).
It is important to note that some lenders require students to immediately go into repayment and untimely payments can affect future disbursements. Meaning loans disbursed in the fall for which monthly timely payments are not made can jeopardize a spring disbursement of that loan regardless of original approval.
At Marymount Manhattan College, we believe that students and parents have the right and ability to select the education loan provider of their choice. Our Financial Aid office works with all lenders and guarantors to ensure the accurate and timely processing of Federal loans, and private loans on behalf of our students and their parents.
Step 2: Complete Private loan application process through Lender of your choice
When applying for an alternative / private loan, lenders will require you to complete a Private Education Loan Self- Certification form. If they do not provide you with a way to complete this form online then you can download the form from our website. Private Education Loan Self-Certification Form. Click to download the form.
- To calculate your cost of attendance you can use the attached figures. Click here for standard cost of attendance information
- To calculate your tuition cost go to our Tuition Information web page or log onto your MMC Connect account and view your term bill and use it to estimate the tuition cost related to the term of your loan.
- Your estimated financial assistance is available on the “Award Package by Aid Year” or by logging onto your MMC Connect account.
Important note: The Cost of Attendance information provided is based on standard enrollment of full time.
Students who plan on filing a FAFSA should do so before applying for a private loan so that they have an estimate of their financial assistance.
Step 3: Complete the Application Process
Complete the application, submit self certification form and any other required paper work to lender, authorize a credit check and if approved sign promissory note.
Keep the following in mind when applying for your private loan:
- Carefully consider the loan period. Students should select a period that corresponds to the schools academic year. Since eligibility is tied to a credit check if a loan is needed for the full year it is advisable to apply for the loan for the full academic year rather than apply for a loan for the fall and then reapply for a loan for the spring. Remember the spring portion if not needed can be cancelled or returned.
- The loan amount you are certified for will be divided equally among the terms for which your private loan was applied for and approved
- Maximum eligibility is your Cost of Attendance, which includes tuition, fees, and living expenses minus the other financial aid you are receiving
- MMC will only deduct private loans from a student’s bill when they are “approved”, meaning that the credit is acceptable or “ready for school certification”, promissory note has been signed, and any documentation required by the lender and college has been submitted. Please note it is the responsibility of the borrower to ensure that the Financial Aid Office receives any certification requests from lenders.
Step 4: School Certification
Once the loan has been approved MMC will receive notification directly from the lender that the loan has been approved and that school certification is requested. Since these loans are designed by the lenders for educational purposes they require certification that the student is enrolled in a postsecondary institution. Traditionally they also require the school to certify the class level ,and credit enrollment and anticipated graduation date of the borrower.
Step 5: Disbursement of Loan
Loans will be disbursed according to the disclosure statement from lender.
If you choose a lender that does not disburse funds via Electronic Funds Transfer( EFT), then a paper check will be issued to MMC and the student. The paper check will require endorsement from the borrower before funds will be credited to the student’s account. The Center for Student Services will notify students if they need to endorse a paper check.
We encourage students to ask their lender about having their loan disbursed EFT since this expedites the payment process. Most disbursement dates are timed to reflect the start dates of each semester.
Direct to Consumer Loans
MMC does not encourage students to apply for Direct to Consumer Loans because the terms tend to be less favorable than private loans certified by the school. The loan amount is not automatically deducted from your bill nor can a temporary credit be placed on the account for the amount of the loan. The loan amount will be posted to your account once payment is received. Please keep in mind that Direct to Consumer Loans are counted as a financial resource and must be disclosed by the student to MMC.
Parents should consider borrowing from the Direct Parent PLUS loan program since it is generally a less expensive loan as compared to a private educational loan. However, parents should be clear that PLUS loans obligate the parent, not the student. Private loans, while more expensive, obligate the student for repayment. However in most cases parents may be required to cosign a private student loan, thereby obligating them as well.