Santa Clara University

The Higher Education Opportunity Act of 2008 mandated a number of significant changes to the application process for Private Alternative Loans. These regulations went into effect on February 14, 2010. New regulations are requiring lenders to provide additional disclosure notices to loan borrowers. In addition to these disclosures, a lender must obtain a signed and completed Borrower Self-Certification form from the loan borrower. These new processes will cause significant delays in the loan application process and disbursements could be delayed by 2-4 weeks or longer. For more information, please see the New Disclosure Requirements for Private Loans.

To speed up the loan application process, please apply for this loan early and keep in touch with your lender often to check the status of the loan.

Private Alternative Loans can help you pay college expenses that may not be covered by federal loan programs or other financial aid. These loans are one source of additional funds used to close the gap between your financial aid resources and college costs. Private alternative loans typically carry higher interest rates and fees than federal loans.

Undergraduate Students, Graduate Students and Certificate-seeking students are eligible for private alternative loans. You (and your parents) may be eligible for Federal Loans (Federal Direct Loans and/or Federal PLUS Loans) which have fixed interest rates that are often lower than Private Alternative Loan interest rates. Most Federal Loan programs offer additional benefits and incentives for borrowers which may reduce fees or lower your interest rates.

We strongly encourage all students to complete the Free Application for Federal Student Aid (FAFSA) and consider borrowing Federal Loans prior to borrowing Private Alternative Loans.

To apply for a Private Alternative Loan

1. You will need to choose a lender and apply for the loan using the lender's online application on their Web site. You may conduct your own research and apply using any lender you wish. The Financial Aid Office will certify Private Alternative Loans from any lender. To learn about and compare trustworthy private loan terms from multiple lenders side-by-side, select California Private Loan Marketplace. Also, we have provided you with a Guide to Choosing a Lender as well as the Alternative Loan Lender Denial Rate Chart to learn more about how to choose your lender. These resources may assist you in determining the best lender for you.
2. Regulation changes effective February 14, 2010 mandate that each student who borrows from a private alternative loan lender be required to complete a Self-Certification Form. Your alternative loan lender is required by law to have your signed Self-Certification Form in their possession before your loan can be disbursed. In most cases, your lender will request that you complete this form as part of the loan application process.

Self-Certification is the process that determines the maximum amount you may borrow in an alternative loan by calculating your Cost of Attendance less all other aid that you have been awarded. The difference between these two amounts is the maximum that you may borrow in an alternative loan. Section 2 of the Self-Certification Form requires that you calculate your Cost of Attendance minus your Estimated Financial Assistance. The Financial Aid Office can assist you with locating this information. Cost of Attendance and Estimated Financial Assistance can also be found in the Financial Aid section of ecampus.

3. Once you choose a lender, apply using the lender's Web site, complete the Self-Certification form and fax or mail it back to the lender, the lender will notify you of the results of your credit check and, if approved, will notify the school of your loan request and approved credit. The Financial Aid Office will certify your loan and communicate with the lender directly to request loan disbursements for the beginning of each quarter. The loan will be disbursed in three equal disbursements; one at the beginning of the fall quarter, one at the beginning of the winter quarter and one at the beginning of the spring quarter. Loans for summer are distributed at the beginning of the session for which you are enrolled.