Private/Alternative or Other Loan Options

If you do not have enough savings or other resources available to help you cover your cost of attendance, you may apply for an alternative loan from a private lender. Some lenders refer to alternative loans as "supplemental" or "private" education loans. Alternative education loans also provide borrowing options to students that do not apply or qualify for traditional financial aid.

Alternative loans are interest-bearing loans from commercial, for-profit lending institutions which generally have higher interest rates and expenses than other educational loans. To borrow from an alternative loan program, students need to have a good credit rating, or they will need to apply with a credit-worthy cosigner. Students with no credit history often qualify without a cosigner but may receive a better interest rate if they apply with a credit-worthy cosigner.

If you are considering an alternative loan, you and your cosigner should decide together which loan best meets your needs. Please refer to the Alternative (Private) Education Loan Guide for additional information. Students enrolled at less than half-time (see Credit Requirements), or students who need loan funding to pay an overdue account balance after they are no longer enrolled, should review the guide before applying for an alternative loan.

UMD encourages all students to complete the FAFSA to apply for aid through federal and state programs before applying for an alternative loan, because the loans offered by federal aid programs do not require students to have a good credit history or a cosigner and may have more favorable interest rates.

Alternative Loan Programs Most Commonly Used By UMD Students

• CitiAssist
• Key Alternative Loan
• Signature Loans serviced by Sallie Mae
• US Bank Gap Loan
• US Bank No Fee Loan
• Wells Fargo Collegiate Loan

This is not intended to be a comprehensive list of every alternative loan program nor is it intended to recommend these programs over those offered by other lending institutions. If you are considering an alternative loan, you can apply with the lender of your choice; you are not limited to those lenders listed here. UMD cannot recommend a loan program for you.

After you chose a loan program, you can apply online or by phone directly with the lender. When you and your cosigner complete the lender's application process, the lender will contact UMD for electronic certification of your application. Once your application is certified and approved, your loan funds will be sent to UMD. Funds from most alternative loan programs will pay electronically directly into your UMD account toward your tuition and fees. However, if your lender sends a paper check, when it arrives you will be contacted via your UMD e-mail account to claim your funds in person at the Student Assistance Center. See additional information on Disbursement of Funds.

When applying online, it is important to apply for the correct type of loan. Because UMD is a "Direct" lender, you cannot apply for the Stafford Loan (students) or PLUS Loan (parents) through a commercial lending institution. Federal funds from the Direct Stafford Loan and the Direct PLUS Loan come to UMD students through the William D. Ford Federal Direct Student Loan Program.

The Office of Financial Aid and Registrar does not intend any specific endorsement of these loan products by including them on this page. The University of Minnesota Duluth neither receives nor accepts any incentives, financial or otherwise, to list lenders on this page.