An alternative loan is an educational loan through a lender that allows students to borrow additional funds after federal student loans have been exhausted. This lender has no ties to the federal government or to Virginia Tech. Our goal is to minimize the amount of debt students incur while at Virginia Tech.
Private or alternative loan programs differ from Federal Direct Loans in several important ways. Generally, it is the Federal Direct Loans which have more favorable terms. We encourage students to borrow their maximum in the Federal Direct Loans prior to borrowing from an alternative loan.
Please note that the entire alternative loan process can take up to six to eight weeks. You should start your private loan application process by meeting with a counselor from our office or other office assistant to determine the amount of student loan you should request and if there are any other aid options. The maximum loan amount you may apply for is limited to the cost of attendance minus any other financial aid you are receiving.
You should then review all lenders and determine which loan program best meets your needs. Please keep in mind that some alternative loan lenders require students to be enrolled at least half time and/or meet reasonable academic progress. As you compare lenders, be sure to identify educational loan products. If you are enrolled in less than half time or not in a degree-seeking program, only certain lenders will provide loans.
After choosing a lender, you should contact the lender directly to apply for the loan. Most lenders will have an online application process. While we encourage students to compare several lenders, you should only apply with one lender. Lenders may require supporting income documentation and/or a co-signer.
Once the lender has approved the loan, a certification request will be sent to our office. It can take 21 days from the date the certification request was received until the loan is actually certified and visible on Hokie SPA/ MyVT. Once the loan has been certified, the lender disburses the loan to Virginia Tech. Our office and the Office of University Bursar then process the disbursement and issue a refund if necessary.
Students applying for a summer alternative loan must complete the Summer Financial Aid Application.
Many private lenders offer alternative loans. The choice of which lender to borrow from is a decision the student must make. Our office will certify (based on financial need) an alternative loan from any lender the student chooses. Some of the lenders students have chosen in the past include: