Germanna Community College will certify alternative (private) loans for eligible students. Students must complete theFree Application for Federal Student Aid (FAFSA) before Germanna Community College can certify an alternative loan application. Lenders require that alternative loan borrowers be credit worthy. In many cases a credit worthy co-signer is required by the lender. Different lenders have different definitions of credit worthiness. Please contact your lender for more information.
Borrowers should visit the lender web sites or contact the lenders directly to apply for an alternative loan and for details on the alternative loan programs. Many lenders allow online applications. The Financial Aid Office may be required to certify eligibility once your application has been approved by the lender. The loan amount that Germanna certifies will be the cost of attendance minus other financial aid, not to exceed the requested loan amount. Loans cannot be certified until the student has registered for classes.
Some lenders send checks directly to the student and some lenders send checks to the college. If the loan check is sent to the college once the loan is approved, the college will apply the loan to the student's tuition statement balence before distributing the loan funds to the student, and after enrollment has been verified. Any refund due to the student from an alternative student loan will be delivered to the student 5 days prior to the beginning of the semester in order to ensure enrollment for the upcoming semester. If loan funds are to be used to pay the tuition balance, funds must be received by the college on or before the tuition due date.
Best Private Student Loans
Borrowers should review this information on Best Private Student Loans found on the finaid.org web site before selecting a lender. Please see the information below about questions borrowers may ask when comparing alternative loan lenders. You should use the lender comparison chart on the finaid.org web site to compare interest rates and terms from many lenders.
Tip. Payment amounts are determined by the borrower's credit score. Better credit scores equals lower payments. Payments may be lowered by having a parent with a good credit score co-sign the loan application.
Tip. Germanna recommends comparing lenders for discovering the most attractive interest rates. Lenders typically will not disclose your interest rate until you have completed the loan application and your credit score has been reviewed. If this is the case, contact the lender directly with questions. Applying for more multiple loans can have a potentially negative impact on your credit score.
Applying for the Loan
In many cases the borrower applies through the lender's web site and the application is certified by the Financial Aid Office. The loan check is sent to the college once the loan is approved and the college applies the loan to the student's tuition statement balence before distributing the loan funds to the student, and after enrollment has been verified. Any refund due to the student from an alternative student loan will be delivered to the student no less than 5 days prior to the beginning of the semester. In some cases the loan check is sent directly from the lender to the student.
Please notify the Financial Aid Office once you have received approval from your lender so that the Financial Aid Office can certify the loan. If the lender requires a paper (rather than online) certification you must provide the certification form to the Financial Aid Office.
>Students often ask the Financial Aid Office for the names of lenders. This is an alphabetic list of some lenders that offer alternative loans. See the section named Best Private Student Loans for a more extensive list. Germanna does not recommend lenders and does not have a preferred lender list. The lenders listed here may not be those with the lowest interest rates or the best terms. Borrowers should check each web site for the most current loan terms.
Lenders for non-credit courses through the Center for Workforce
Students taking non-credit courses are eligible to borrow to pay the cost of tuition and books and supplies. The borrower works directly with the lender and in most cases the loan check is sent directly to the borrower. There are several lenders who will make loans to students taking non-credit courses. See the information above about Best Private Student Loans.
Student borrowers under age 18
Most states require student borrowers to be at least 18 years old. Parents and, in some cases, other credit worthy adults may borrow on behalf of students who are under 18. See the information above about Best Private Student Loans.
Questions borrowers may ask lenders when choosing alternative loan lenders
Interest rates. What is the base interest rate? What is the margin over the base interest rate? Is the interest rate variable over the life of the loan? How often does the variable interest rate adjust?
Fees. Does the lender charge up front loan fees? Does the lender charge fees when the loan goes into repayment?
Minimum Loan Amount. Some lenders will not approve small loans less than $2000 or $3000. If you want to borrow less, choose a lender that will make smaller loans.
Interest Capitalization. Can interest be capitalized (added to the loan principal) while the borrower is attending school? What is the interest rate on capitalized interest? Can interest only payments be made during periods while the borrower is attending school?
Repayment. Are there interest rate or principal reductions for on time or electronic payments? Are there different repayment options? Are there prepayment penalties? What is the projected monthly payment? Do you have the option to extend the repayment period? What is the maximum repayment period? Is there a grace period before repayment begins?
Creditworthiness. What is the lender's credit criteria? Will a co-signer be required?