Undergraduate Supplemental Loans
Alternative Loans
Alternative loans are loans provided by a private lender and require a credit check for the borrower and cosigner. They are typically more expensive than the Federal loans awarded in your financial aid package. Research scholarship opportunities, grants, work programs, and Federal loan programs before borrowing from an alternative loan program. The loan options presented below have been reviewed by the Financial Aid Office and are presented to you based on potential borrower benefits, competitive rates, customer service, and reliability. There are many other alternative loan options available for students and parents our office is always happy to work with any lender of your choosing.
Private Alternative Loan Options
|
Loan Name (Click for Website) |
Low Range of Rates |
High Range of Rates |
Fees |
Borrower |
Phone Number |
Grace Period |
Potential Borrower Benefits |
|
Key Alternative Loan |
LIBOR + 2.49% |
LIBOR + 6.99% |
0 |
Student |
1-800-KEY-LEND |
6 months |
N/A |
|
Solution Alternative Loan (CSLF) |
Prime |
Prime +4% |
2%-6% |
Student |
1-800-237-9721 |
6 months |
Interest rate reduction of 0.25% when using automatic debit |
|
Wachovia Undergraduate Loan |
Prime -0.50% |
Prime + 4.00% |
0 |
Student |
1-877-689-0763 |
6 months |
Interest rate reduction of 0.50% when borrowers authorize automatic debit from checking or savings accounts Cosigner release after the first 36 consecutive on-time monthly payments |
|
Wells Fargo Collegiate Loan |
Prime |
Prime + 5.99% |
0 |
Student and Cosigner |
1-800-658-3567 |
6 months |
Wells Fargo Student Graduation Benefit (interest rate reduction of 0.50% at repayment with verification of graduation Cosigner release after the first 24 consecutive on-time monthly payments |
|
Chase Select |
Prime -1.00% |
Prime + 6.00% |
0 |
Student |
1-800-487-4404 |
6 months |
Interest rate reduction of 0.50% when borrowers authorize automatic debit from checking or savings accounts |
|
MEFA Alternative Loans |
Not yet available |
N/A |
N/A |
Parent |
1-800-449-6332 |
N/A |
N/A |
|
ParentAchiever Loan by Key Bank |
LIBOR + 3.25% |
LIBOR + 7.00% |
0 |
Parent |
1-800-KEY-LEND |
Repayment begins 15-45 days after disbursement |
N/A |
|
Signature Loan |
LIBOR +2.50% |
LIBOR + 9.50% |
0 |
Student |
1-888-2-SALLIE |
6 months |
Interest rate reduction of 0.50% when borrowers authorize automatic debit from checking or savings accounts Cosigner release after the first 24 consecutive on-time monthly payments |
|
CitiAssist by Citibank |
Prime -0.50% |
Prime + 4.75% |
0-5% |
Student |
1-800-967-2400 |
6 months |
Interest rate reduction of 0.25% when using automatic debit Additional 0.50% interest rate reduction if borrower makes their first 48 consecutive required monthly payments on time Cosigner release after the first 24 consecutive on-time monthly payments |
This information is a result of each lender’s response to Wheelock College’s request for information as of April 2008. This information represents the rates and terms effective for loans disbursed from July 1, 2008 to June 30, 2009. The Financial Aid Office attempts to keep the above information as current as possible, however, we urge you to carefully read all documents provided by your lender to confirm the terms of your loan.
Interest Rates as of 04/25/2008
3 month LIBOR: 2.92 %
Prime Rate: 5.25%
Why should parents choose a Federal PLUS Loan?
- A PLUS Loan can be used to cover the entire cost of a student’s education. This includes tuition, room and board, books, and other miscellaneous fees. There is no minimum or maximum loan amount - ultimately, the school determines the amount for which the parent is eligible.
- Credit approval is based on the borrower’s credit history; not on income or debt-to-income as with many other loans. This is surprising to many parents who would otherwise assume they either make too much or too little to qualify.
- Repayment of a PLUS Loan generally does not begin until 60 days after the funds have been disbursed, and has a repayment term of up to 10 years.
- A PLUS Loan can also provide tax savings and incentives. Parents should check with a tax advisor to determine their eligibility
- Some parents opt for private loans in the student’s name because they are concerned about having a PLUS Loan appear on their credit report. However, most private loan programs require a co-signer, who is often the parent. These loans do appear on the co-signer’s credit report, as they are responsible for the loan in the event a student borrower does not make the payments.
Parent PLUS Loan Options
The interest rate for the Parent PLUS loan is currently fixed at 8.5%. A 3% Origination Fee and a 1% Guarantee Fee are deducted from the total amount of the requested loan amount. Please keep this in mind when determining how much to borrow.
Example:
Parent requests to borrow: $1,000
The lender will subtract 4% for the Origination and Guarantee fees:
$40
Total
amount applied to student’s Wheelock account: $960
|
Lender Name (Click for Website) |
Phone Number |
Potential Borrower Benefits |
|
CitiBank |
1-800-967-2400 |
Interest rate reduction of 0.50% when borrowers make on time payments. This benefit continues as long as borrowers make on time monthly payments. Interest rate reduction of 0.70% when borrowers utilize Citibank’s automatic debit system and agree to receive only electronic statements |
|
Citizens Bank |
1-800-922-9999 |
Interest rate reduction of 0.70% when borrowers authorize automatic debit from checking or savings accounts |
|
Key |
1-800-KEY-LEND |
Interest rate reduction of 1% when the borrower makes the first 36 monthly payments on time using automatic debit from checking or savings accounts |
|
Wachovia |
1-877-689-0763 |
Interest rate reduction of 1% when the borrower makes the first 36 monthly payments on time using auto debit from checking or savings accounts |
|
Nellie Mae |
1-888-2-SALLIE |
Interest rate reduction of 0.70% when borrowers authorize automatic debit from checking or savings accounts |
