Alternative Loan Programs
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
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.