Private/Alternative Loans
Private/Alternative Loans are educational loans offered by banks, credit unions, and other private lenders. These loans can help cover educational expenses after federal financial aid, scholarships, grants, and other financial resources have been considered.
Private loans are not funded by the federal government and may have different interest rates, repayment terms, fees, and borrower protections as determined by the lender.
Eligibility for most Private/Alternative Loans is based on credit approval for the student borrower and/or a cosigner, as determined by the lender.
When Should Private Loans Be Considered?
Mississippi State University encourages it's students to explore the following funding options first:
- Scholarships
- Grants
- Federal Work-Study
- Federal Direct Loans
- Private/Alternative Loans
Private/Alternative Loans can be a useful funding option when needed, but these loans should only be considered after other financial aid options have been explored.
How Much Can I Borrow?
Most private lenders allow students to borrow up to the cost of attendance minus any other financial aid received.
The amount you may qualify for depends on:
- Your cost of attendance
- Other financial aid received
- Credit-worthiness
- Lender requirements
Applying for a Private Loan
Students can compare and apply for Private/Alternative Loans through an approved lender. After selecting a lender, the application is completed directly with that lender.
Mississippi State University does not have a preferred lender list for Private/Alternative Loans. We encourage all students to compare private loan options and review lender terms before selecting a loan.
Some lenders may require students to meet Satisfactory Academic Progress (SAP) standards and be enrolled at least half-time. Be sure to review each lender’s specific eligibility requirements.
Compare and Apply for Private Loans
Frequently Asked Questions
What is a Private/Alternative Loan?
A Private/Alternative Loan is a student loan offered by a private lender, such as a bank or credit union, to help cover educational costs not met by other financial aid.
Should I complete the FAFSA before applying for a private loan?
Completing the FAFSA is not a requirement for most Private/Alternative Loans. However, students should complete the FAFSA first to be considered for federal grants, scholarships, work-study, and federal student loans, which typically offer more favorable terms.
How much can I borrow with a private loan?
Private loan amounts are generally limited to the cost of attendance minus any other financial aid received, as determined by Mississippi State University.
Do I need a cosigner?
Many students may need a creditworthy cosigner to qualify or to receive better loan terms. Cosigner requirements vary by lender.
How are interest rates determined?
Interest rates are set by the lender and are based on factors such as credit history, cosigner credit, and market conditions. Rates may be fixed or variable.
When do I start repaying my private loan?
Repayment terms vary by lender. Some plans require payments while in school, while others allow deferred repayment until after enrollment ends.
Does Mississippi State University recommend a specific lender?
No. The university does not maintain a preferred lender list. Students may choose any eligible lender and are encouraged to compare options carefully.