Alternative Student Loans
Federal student loans are available to most students regardless of income and provide a range of repayment options including income-based repayment plans and loan forgiveness benefits, which other education loans are not required to provide.
Alternative education loans (also known as private loans) are an option for financing your education. Federal, state and university policy recommends that student borrowers maximize federal loans before the alternative/private loan request is processed. Complete a Free Application for Federal Student Aid (FAFSA) or California Dream Act in order to determine student loan eligibility.
StudentAid.gov provides a federal and alternative/private loan comparison. Here are some things to consider:
- Alternative loan eligibility requirements vary from lender to lender.
- Alternative loan lenders can offer variable interest rates that can increase or decrease over time, depending on market conditions.
- Students may also be required to meet citizenship requirements or provide a co-signer who meets citizenship requirements.
- The interest rate on a private loan may depend on the borrower’s and/or co-signer’s credit rating.
- Other eligibility requirements may apply depending on the lender.
- Review the interest rate and processing fees prior to borrowing.
UC Davis is not involved in the alternative loan credit decision. All credit decision questions should be directed to the loan lender. Financial aid eligibility applies to all certifications of loan amounts.
School Certification Process
Financial aid staff will receive a certification request. Certification will be reviewed for the 2020-21 academic year after the July 15 verification deadline. We recommend that you take action on University and Federal Loan offers before this date to expedite processing.
- Staff will approve or deny alternative loan certification. Maximum eligibility is determined as follows:
- Cost of Attendance; estimated financial aid (offered and accepted) will equal alternative loan eligibility
- Alternative loan estimate posted on MyAwards and split among all registered terms
- Lender approval is subject to award minimum and maximum criteria
- The lender sends funds to UC Davis Cashier & Payment Solutions Office
- Student Accounting applies loan funds to MyBill after financial aid staff reduces the placeholder
Alternative/Private Lender List
To start your search, the UC Office of the President has put together a list of recommended lenders. Please be aware that you are not required to use any of the lenders on the list, they are simply provided for your convenience. Per the Higher Education Opportunity Act (HEOA) guidelines, our office adheres to the University of California Code of Conduct in regard to lender arrangements. If you have specific questions related to your credit history you should contact the alternative loan lenders at the numbers provided on the website listed below:
- UC Private Lender List (managed by ELMSelect)