Private or alternative loan programs differ from Federal Direct Loans in several important ways. We encourage students to borrow their maximum in the Federal Direct Loans prior to borrowing from an alternative loan because Federal Direct Loans generally have more favorable terms.
Please be aware that these types of loans can take several weeks to process especially during peak time periods.
General Information
A private/alternative loan is an educational loan in the student’s name through a private lender (cosigner may be required). This allows students to borrow additional funds after federal student loans have been exhausted or if the student is not eligible for federal aid. 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, therefore we recommend students utilize federal loans first if eligible and borrow only what is needed.
Federal vs. Private Loans
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.
- Interest rates are normally variable and can change on a quarterly basis. Students are responsible for researching the terms and conditions of all loan programs.
- Loan and interest rates are based on credit approval, and approval is not guaranteed.
- Virginia Tech is NOT involved in the credit decisions or denials for these loans. Questions are best addressed to the individual lender.
- Loans are not federally guaranteed; therefore they do not have the same deferment, cancellation, and consolidation benefits.
Alternative Loan Application Process
Attention alternative loan borrowers:
Federally mandated changes to the lenders loan application process went into affect February 14, 2010. Alternative loan lenders are required to provide borrowers with three separate disclosure statements. Please read these disclosures carefully and be aware you have to actively accept the terms of your loans and complete a Self Certification form. The lenders will provide the needed disclosures and forms within the loan process. Unless you have completed all these steps with your lender, your loan will not be finalized and processing and disbursement will be delayed. It is very important that you pay attention to correspondence from your lender. The information to complete the self-certification form is available on HokieSpa/MyVT for most students. Please use the self-certification from your lender sends you or provides online for you. If you need assistance completing the form or need a blank form, please contact our office.
- You should start your private loan application process by checking with the financial aid office. We can help determine the amount of student loan funds you may need 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.
- It is recommended that if you will use a private/alternative loan for both fall and spring, to apply for both terms at the same time. It is important to request the loan using proper loan period dates (see below).
- Please do not apply for 2012-2013 private alternative loans until May 2012.
- To ensure loan funds are available to meet your fall 2012 semester bill due date; apply during May and June, 2012. If you apply after this time, your loan will be delayed and not available to meet the August 10th bill due date.
- To ensure loan funds are available to meet the summer 2012 bill due dates; apply for summer loans starting in early March.
Valid Loan Term Dates at Virginia Tech :
Fall and spring 2011-2012: 08/22/2011 to 05/9/2012
Spring only 2012: 01/16/2012 to 05/9/2012
Summer 1 (2012) only: 5/21/2012 to 6/30/2012
Summer 1 and Summer 2 (2012): 5/21/2012 to 8/11/2012
Summer 2 (2012) only: 7/2/2012 to 8/11/2012
- You should then review all lenders and determine which loan program best meets your needs. Please keep in mind that some lenders require students to be enrolled at least half time, be in a degree-seeking program, and/or meet reasonable academic progress standards.
- After choosing a lender, you should contact the lender directly to apply for the loan. Most lenders will have an online application process. Lenders may require supporting income documentation and/or a co-signer. Please be sure to read all correspondence from your lender. Remember you must actively accept the terms of your loan and complete a Self-Certification form. The information to complete the self-certification form is available on Hokie Spa/My VT for most students. If you need assistance completing the form, please contact our office.
- Once the lender has approved the loan, a certification request will be sent to our office. It can take up to four weeks, depending on the time of year 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, and after lender processing time, the lender disburses the funds to VT. Our office and the University Bursar then process the disbursement and issue a student living expense refund if applicable. Please note: Once the funds arrive at VT it can several days to 2 weeks to process and for payment to show on the student account and for a refund to post.
- Note: Please make sure your social security number is on file and correct with the registrar's office.
- If you will not be enrolled full-time for the semester you utilize this type of loan, please turn in the "Financial Aid Change Form" located under "Forms" on our website to let us know
Lender Options
A student can choose to borrow from any lender that offers private alternative loans. Our office will certify (based on eligibility) a private/alternative loan from any lender the student chooses.
The list of comprehensive private alternative loan lenders are ones that students at Virginia Tech have borrowed from during 2009-2012 The Private Alternative Loan Comparison Chart can be used to assist you in reviewing information on the lenders listed below. The terms and conditions of the lenders provide are as of March 1, 2012 and may have changed. Lenders that are no longer offering private alternative loans have been removed from the list below. The list is in alphabetical order only---there is no ranking.