There are several types of loans available to assist students, whether you are a dependent, independent, undergraduate, or graduate student. There are also loans to help parents of dependent students with paying for college. The chart below will help you understand the basic differences between each type of loan.
Eligibility for federal student loans will be listed on UE's Financial Aid Notification Letter for those who have filed the Free Application for Federal Student Aid. Instructions for requesting loan funds will be communicated via e-mail to the student. Repayment of federal student loans is not required by the student until 6 months after leaving college.
After exhausting the student's eligibility for federal student loans, some families choose to pay any remaining balance with additional loans. Creditworthy parents of dependent students who have filed the FAFSA may choose to pay their out-of-pocket college expenses by borrowing a Federal Direct Parent Loan for Undergraduate Students (PLUS). Parents apply online for the PLUS Loan at studentloans.gov. Parents usually begin to repay the Federal Direct PLUS during college, while loans in the student's name offer deferred repayment after leaving college. In contrast to the Federal PLUS Loan, many private educational lenders offer loans in the student's name, with repayment deferred until after college. See below for more details about private/alternative student loans.
Borrowers may request more PLUS or private loan funds than is due to UE in order to have extra funds for educational expenses that arise throughout the year, such as books, supplies, and transportation. The maximum PLUS or private loan that borrowers may request for one year is determined by subtracting the total aid (scholarships, grants, and student loans) received by the student from the official Cost of Attendance (COA) budget. Various COA budgets for UE students can be found online.
Educational Loan Comparison Chart
Private (Alternative) Loans Based Upon Credit
Private educational loans (often called 'alternative' loans) are available on a credit-approval basis from private lenders and offer additional financial assistance if you have exhausted all other sources of funding for your education. Filing the FAFSA is not required for private loans; however, you should use all grants, scholarships and federal loans for which you are eligible before considering any private loan. Most lenders allow the loan to be in the student’s name; however, most require a creditworthy adult cosigner to qualify for a private loan. Each private lender has different eligibility requirements, loan rates, repayments terms, and conditions. Some will not require loan repayment until after college, but may require payment of interest while you are in school.
Please use the links below to access private lender comparison tools and online applications via ISM Marketplace and/or ElmSelect. The lenders listed in these links are offered here for the convenience of comparing loan terms. You may select any lender you wish for a private educational loan.
All private loan lenders are required to provide to student borrowers three disclosure statements and a Self-Certification Form prior to the school being able to certify the loan. The student will be required to complete and return the Self-Certification Form to the lender.
Other types of disclosures the student will receive include:
- Application Disclosure
- Loan Approval Disclosure
- Final Disclosure (prior to disbursement)
If you plan to apply for a private loan, you will need to be timely and proactive in acknowledging and providing any information requested. Delays in acknowledgement of the above disclosures or in completion of the Self-Certification Form will delay disbursements.
United Methodist Loan
The United Methodist Scholarship and Loan Programs are a church wide educational service providing scholarships and loans to help supplement the financial needs of today's students. Funding for these loans and scholarships are provided through offerings, wills, annuities, and other designated gifts. Find more information here: United Methodist Loan.
Costs of Attendance for Private Loan Self-Certification
The Cost of Attendance (COA) is the fall and spring total of tuition, fees, room, meals, books, personal, and transportation costs the University has built into your overall budget and is the maximum total financial aid you may have for this year. Various COA budgets for UE students can be found online.
All private lenders must require students applying for a private loan to complete a Self-Certification Form indicating the amount of the UE COA, the student's financial aid, and the difference between the two.
Questions about the Cost of Attendance can be answered by contacting the Office of Financial Aid.