Alternative Loans
Overview
Important: We encourage students to explore federal student loan options before applying for an alternative (private) loan, as federal loans may offer more favorable interest rates, repayment options, and borrower protections.
Alternative loans are available to students who are not eligible for federal financial aid or who need additional funding to help cover educational expenses. Eligibility is determined by your Cost of Attendance (COA), other financial aid and resources received, and any annual loan limits established by your lender.
Because alternative loans are not backed by the federal government, they are provided through private lenders. These loans often have higher interest rates and fees than federal student loans. Most lenders will review your credit history and other financial factors when determining eligibility. Approval criteria vary by lender, so you may be denied by one lender and approved by another.
Loan Certification and Disbursement
After you submit your application to a lender, Wichita State University will typically receive the certification request within 2 to 3 business days. If the loan is eligible for certification, the request will be reviewed and certified by the Office of Financial Aid & Scholarships.
Following certification, your lender may contact you to complete any remaining requirements before funds can be disbursed. The time between certification and disbursement varies by lender and may take up to two weeks or longer. Please contact your lender directly for specific information regarding their disbursement process and timelines.
Processing Times
Alternative loan certification requests are reviewed in the order they are received.
- Standard processing: 2 to 4 weeks
- Peak processing periods (July-August and December-January): 4 to 6 weeks
- Incomplete applications: May require additional processing time and could result in delays
To avoid delays, submit all required application materials as early as possible.
FAQs and Other Resources for Alternative Loans
Alternative loans are not for everyone. They are expensive and should only be considered when all other resources (such as Federal Direct or Parent PLUS loans) have been exhausted.
For example, a freshman dependent student can borrow up to $5,500 under the Direct Loan Program. If this student is not eligible for grants or other aid and cannot make up the difference through working, there may not be funds available to cover registration fees, books, and housing. If no other resources are available, this student may want to consider an alternative loan.
- What is the interest rate and what is it based on?
- When do I need to begin repaying the loan?
- Can principal and interest be deferred?
- When is the interest capitalized?
- How much is the loan origination fee?
- What is the maximum amount I can borrow per year?
- What is the minimum amount I can borrow per year?
- Can I make payments on the web?
- Can I consolidate the loan with other loans?
- Can I borrow money to cover past-due balances from a previous semester?
- Are there interest rate deductions or other incentives if I make my payments on time?
Requirements vary according to the lender. However, common requirements state that loan recipients must be:
- Undergraduate students in a degree or certificate program
- Enrolled at least part time
- Creditworthy borrowers or borrowers with creditworthy cosigners
- U.S. citizens, permanent residents or eligible non-citizens
- Making satisfactory academic progress
Wichita State does not endorse any specific loan lenders; however, we offer a list of lenders that students have used over the past 2 years. This list provides some comparison information for interest rates and terms, but we encourage to be diligent in your search for the best loan for you.
You may select another lender, but be advised that delays may occur as some other lenders do not process with us electronically.
View lenders to apply for an Alternative loan
Note: If you choose to borrow a private loan before using any available federal Direct loans (applied for through the FAFSA), the Office of Financial Aid will require you to complete a "Authorization for Certification of Alternative Loan Prior to Direct/PLUS Loan Certification" form.
If you need information to complete a Self-Certification form for an alternative student loan, please follow the instructions listed below:
- Log into myWSU.wichita.edu.
- Select the myFinances tab and then Financial Aid Awards.
- Select the appropriate academic year
- Award Overview
Use the information on the Financial Aid Award Overview page to complete your Self-Certification form from the loan lender. This page will display your Cost of Attendance (also known as an Estimated Financial Aid Budget), Financial Need, and Total Aid. If the loan you are currently applying for has already been added to your award, do not include it as current aid on the Self-Certification form (available through your private loan lender).
Submit the form online directly to your loan lender for processing (not to the Office of Financial Aid).
The Office of Financial Aid & Scholarships recommends that all students interested in financial aid, including student loans, complete the Free Application for Federal Student Aid (FAFSA) so that eligibility for federal and state grants, loans, and other types of financial aid can be determined. Students who meet the minimum eligibility criteria will typically qualify for a Federal Direct Unsubsidized Loan.
To decline pursuing a Federal Direct Loan, you must complete the authorization form and return to the Office of Financial Aid & Scholarships. A new authorization form is required for each new aid year.
