Private/Alternative Loans

If you need funds to help bridge the gap between the federal/state aid you qualified for and the actual cost of your education, a private or alternative student loan might be an option. There are many outside agencies and private lenders that provide this type of funding to students. While NYSID does not promote or endorse any lenders in particular, there are many loan comparison sites available on the internet to assist you in your research. Students are advised to compare loan programs carefully because the terms and conditions for private loans vary greatly.

Here are some items to consider when researching private/alternative loans...

  • Your home state may have special, low-interest loan programs available exclusively to its residents. You should check with your state's student aid assistance agency for such offers
  • Private loans are contingent upon credit approval and approval is not guaranteed. Sometimes a cosigner may be required
  • Interest rates are typically variable and interest is NOT subsidized
  • Private loans may be subject to additional fees (i.e. origination fees, missed payment fees, prepayment penalty fees)
  • Private lenders may not offer deferment or forbearance options, and loan forgiveness programs are highly unlikely

You can find information on the difference between federal and private loans here.

Once a private lender has been selected, you must obtain and complete that lender's loan application. You may apply for loans on a semester basis, or combined for the entire academic year. We recommend one loan application for each academic year to minimize the number of credit checks as this can jeopardize credit approval. Make sure to submit all required documentation directly to the lender. After your application has been approved, the lender will forward information to NYSID for certification. Please note that the loan funds will not be available for credit on your bill until the check has been received and disbursed by NYSID.