Alternative Loans
There are two general types of alternative loans: Private and Grad PLUS loans.
Private loans are obtained by completing an online promissory note, or application, with the lender of your choice. These privately funded loan programs enable law students to borrow up to the cost of attendance (tuition and fees, plus allowable living expenses) less other financial aid. However, annual and aggregate educational borrowing maximums can limit the size of the private loan. Private loans are variable interest rate loans that are credit-based, and their interest rates will vary with the student's credit rating and according to market forces. A higher credit score allows for the opportunity to get a lower interest rate.
Information on Alternative Loans
Grad PLUS loans are obtained by completing an online promissory note, or application, with the lender of your choice. These federally subsidized loans enable law students to borrow up to the cost of attendance (tuition and fees, plus allowable living expenses) less other financial aid. However, annual and aggregate education borrowing maximums can limit the size of the Grad PLUS loan. The Grad PLUS loans are fixed interest rate loans. The currently interest rate is 8.50% for all borrowers regardless of credit.
Information on Grad Plus Loans
Credit Reports
An amendment to the Federal Fair Credit Report Act was recently passed. This amendment requires that each of the consumer reporting companies to provide you with a free copy of your credit report once every 12 months, at your request.
There is more information at http://www.ftc.gov/bcp/conline/pubs/credit/freereports.htm
Copies of your credit report can be procured from:
Equifax
www.equifax.com
Experian/TRW
www.experian.com
Transunion
www.tuc.com
If you report contains negative financial information, in error or not, your private loan can be denied. We advise you to obtain a copy of at least one of your credit reports to review. It is important that you discover any problems early so you have time to make corrections (see the Fair Credit Report Act for technical requirements or begin repairing any damage to your credit rating. Loyola is unable to replace "denied" loans with other sources of aid, so it is critical for students to know whether or not their credit history will support their planned borrowing.
