The University of Alabama

FINANCIAL AID

Alternative Loans

Alternative loans, or private loans, are loans that are not issued by the federal government which can be used to help pay the cost of attendance less any other type of aid.  An important distinction within this class of loans is whether the loan is either certified or non-certified.

Certified loans are loans that are certified by the Financial Aid Office. The Financial Aid Office ensures that students are indeed eligible to receive additional amounts and that these amounts do not exceed the cost of attendance.

Non-certified loans do not have to be certified through the Financial Aid Office.

Students do not have to fill out a FASFA to pursue private loans because they are based on credit worthiness. Lenders of private loans set their own criteria for approving loans and unlike federal loans, interest rates vary by lender. It is best for students to apply for federal loans before seeking alternative loans.