Alvernia University recommends that its students first utilize Federal funding but sometimes students have found that in addition to federal funding, a private student loan can be helpful in financing their educational costs.
When is a private student loan appropriate?
If your family has exhausted more attractive financing options such as the tuition payment plan through Tuition Management Systems and the Parent PLUS Loan, then you might want to consider a private alternative loan. A private alternative loan is a loan that the student borrows, however, in most cases the student will need to secure a credit-worthy co-signer. The student and co-signer should be fully aware that the loan is in both the student's and co-signer's name. If the borrower defaults (stops making payments or is late in making payments) on the private alternative loan the co-signer is fully responsible for the loan.
Students should always take Federal student loans first before considering any private student loans. Stafford loans have a fixed interest rate. Most Parent PLUS loans have a fixed interest rate. Most private student loans require a credit-worthy co-signer. Please be aware that the lenders/loans have variable interest rates and have no cap; these interest rates may change monthly or quarterly depending on the bank/lender. Interest does accrue on private/alternative loans, and may be deferred while in school, or depending on the lender, must be paid while in school. We recommend, when possible, to pay any accrued interest while in school and during the six-month grace period.
While you may apply on your own for private student loans, some students will need to apply with a creditworthy cosigner, such as a friend or family member. We strongly urge all students to apply with a cosigner as it may improve the chances of loan approval and may help quality for a lower interest rate.
Private Loan Disclosure Statement:
Federal loan regulations, set by the Department of Education, require a college or university that chooses to provide a Recommended Lender List to its borrowers to disclose their method of selecting the lenders included on the list. This information is provided to potential borrowers about the methods and selection process utilized by Alvernia University's Office of Student Financial Planning in the creation of the Recommended Lender List.
According to Section 682.212 of the Federal Register, published by the Department of Education, "A school may, at its option, make available a list of recommended or suggested lenders, in print or any other medium or form, for use by the school's students or their parents, provided such list:
Why a Preferred Lender List?
Steps Taken With Decision Process
Once all information had been gathered and considered, the committee within the financial aid office made a decision for the academic year based on particular criteria (which are listed below).
Criteria Used to Select Lenders
Borrower Benefits—In considering benefits, it was important to evaluate the lenders who offer borrower benefits to students as well as the percentage of the actual borrowers who qualified for such benefits. Such borrower benefits that were evaluated included the following:
Quality of Lender Products and Services—In evaluating lenders' quality of products and services, it was important to determine which lenders provide exceptional customer service to its borrowers as well as the school. Such quality of products and services criteria used to evaluate each lender was as follows:
Lender Stability—With regulatory changes and market instability affecting lenders' decisions to remain in the student loan industry, it was important to select lenders who are reliable and will continue to service borrowers for future years. Such lender stability criteria used to review each lender included the following:
View Alvernia's Recommended Lender List*
*This is not a comprehensive list of all the lenders who currently market private/alternative student loans. The list is in alphabetical order, not in any order of preference. If you would like to use another lender that is not on this list, you have the right to choose whatever lender you wish. Some states have their own private loans for residents of that state. Some state specific alternative loans include: Alaska, Maine, Massachusetts, and New Jersey. Please check with your state to see if private state loans are available. The interest rate and fees on private/alternative student loans are dependent upon many variables, one of which is the FICO score of the borrower and/or co-borrower. Please review the information listed below for each bank/lender very carefully before making your choice, and you may want to visit the lender's website for more details.
400 Saint Bernardine Street
1st Floor – Bernardine Hall
Reading, PA 19607
Mon - Th: 8:00 am – 6:00 pm
Fri - 8:00 am – 4:30 pm
Summer Office Hours*
Mon - Th: 8:00 am – 5 pm
Fri - 8:00 am – 4:30 pm
*Starting on June 2nd