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Private Alternative Loans

For any private alternative loans, be sure to complete the loan application 30 days before the start of your enrollment to avoid late fees or holds preventing registration. It may take this additional time before SPU receives the funds.

Private student loans

Private (also called alternative) loans are non‑federal loans offered by banks, credit unions, and private lenders. These loans can help cover educational costs if federal aid and other resources do not meet your full Cost of Attendance.

How to find a private loan?

You are free to choose any private lender. The resources below may help you compare options:

  • Use  to compare lender that have provided private loans to SPU students in the past.
    • You are not required to choose a lender from this list.
  • Check with your personal bank or credit union

Please note:
Your Financial Aid Specialist cannot recommend a specific lender, but they can help you understand loan terms and the application process.

Quick overview

Private loans are typically taken out in the student’s name. Depending on your credit history, a cosigner may be required to qualify or to receive a lower interest rate.

The total amount you may borrow cannot exceed your Cost of Attendance (COA) minus all other financial aid.

COA – other financial aid = maximum private loan eligibility

Private loans do not have origination fees, so you should apply only for the amount you intend to borrow.

Some lenders require payments while you are enrolled, but most offer in‑school deferment, meaning payments are not required while you are enrolled at least half‑time (3 credits for graduate students).

  • Both fixed and variable interest rate options are available.
  • We generally recommend fixed‑rate loans, as the interest rate remains the same for the life of the loan.
  • >Rates and terms vary by lender and are based on credit history.
  • Applying for a private loan requires a hard credit check.

Interest begins accruing when the loan disburses to your student account, typically about 10 days before the start of the term.

Regulations

Note that regulations require the lender and borrower to complete several steps before the loan may be disbursed, and once approved, it may take an additional 30 days before SPU receives the funds.

Due to the Federal Truth in Lending Act regulations:

  • The date of disbursement of your loan cannot be changed.
  • The lender provides you with a 10 day right of rescission (cancellation) once the loan has been approved. This is a period where the disbursements are held by the lender in order for you to have a final chance to change your mind and cancel your loan without penalty. 

Research alternative loan lender options.

Questions? We are here to help!

Email loan questions to loans@spu.edu

206-281-2061
800-737-8826 toll free