Private Alternative Loans
A number of private lenders (non-federal) and other financial institutions offer education loans to students. These loans are referred to as private alternative loans.
Private alternative loans are not subsidized, and generally have higher interest rates and fees, both based on your credit score. In addition, cosigners may be required. Penn encourages U.S. citizens and permanent residents to first consider the Federal Direct and Federal Direct PLUS loan programs when they need to borrow.
If you choose to pursue a private alternative loan, you will submit your loan application directly to the lender and not through the University of Pennsylvania.
Can Penn recommend the best private alternative loan?
Interest rates and fees on many private loans are tiered, based on your credit score. Therefore, Penn cannot provide you with information about comparative pricing of private loans nor about the likelihood of your being approved with or without a cosigner.
To assist you we have listed below, in alphabetical order, those private lenders who have made five or more private educational loans to Penn students over the past five years, who have not, to our knowledge, suspended making education loans, and who have electronic processes and links to Penn that expedite loan origination and disbursement.
Tip: Before applying for any private alternative loan program, be sure to get free copies of your credit reports at www.annualcreditreport.com and correct any errors that may be listed.
Historical Lending List
Please note you are not required to use any of the listed lenders and will not be penalized or disadvantaged if you choose to borrow from another lender. Be sure to compare the fees and terms of all student loan products to determine which are best suited to your needs.