Private Alternative Loans
Alternative loans are unsecured educational loans through private lenders (not the federal government). These loans typically have much higher interest rates, loan tuition fees, and/or payments than the Federal Direct Student Loans, and should only be used when you have exhausted all other options. Thus, for those students who apply for an alternative loan through a private lender, please be aware that the OFA&S will require that you have already completed a FAFSA (so that we can determine Stafford or any other aid eligibility first), as well as an Alternative Loan Questionnaire (so you understand the terms of the loan), before we will certify this loan.
How to Apply
CSUB will only certify an alternative loan if -
- you are a CSUB student enrolled at least half time
- you complete a Free Application for Federal Student Aid (FAFSA), which enables us to determine any federal and state financial aid that may be available to you.
- your eligibility for all other forms of aid has already been determine by the OFA&S.
- you complete an Alternative Loan Questionnaire, so that you can make an informed decision.
- lastly, you complete the Private Alternative Loan Self-Certification Form provided by your lender. If your lender does not provide you with the self-certification form, you may print the Private Education Loan Self-Certification Form here, then complete and submit it to your lender.
Note: The deadline for certification of alternative loans is the student's last day of attendance. An exception may be made for students who owe a balance on their CSUB student account, in which case we will only certify the loan for the amount owed to the University.
An alternative loan, whether or not it is required to be certified by CSUB, is a resource that you must report to the Office of Financial Aid and Scholarships. We will coordinate your alternative loan with the other aid you are receiving.
If you receive an alternative loan after receiving other financial aid for the term, you may be required to repay some of all of the aid you receive. The total of all financial aid and other resources cannot exceed your cost of attendance.
Choosing a private alternative loan lender
For a list of lenders and products typically used by students at CSUB, please click our Lender List. We recommend these lenders based on the quality of products and services they provide to students and families. We have carefully considered our selection in order to provide you with the best possible list of lenders. However, if you wish to use another lender that is not on this list, please contact us so we can discuss the possibility of adding them to our list.
Private Alternative Loan disbursement
When we receive your loan check from the lender, you will be asked to endorse the check so it can be credited to your CSUB student account. Once your tuition fees are paid, any refund will be issued to you by the Student Financial Services Office.
CSUB will only disburse funds for an alternative loan if -
- you are an CSUB student enrolled at least half-time,
- you complete a Free Application for Federal Student Aid (FAFSA) which enables us to create a record for you and determine any federal and state financial aid that may be available for you,
- you are listed as the borrower on the loan and the check is made payable only to you (or co-payable to you and CSUB) because CSUB does not participate in private loan programs that allow parents or third parties to borrow a loan on behalf of the student, and
The alternative loan will be deposited to your CSUB university account, and any credit balance will be refunded to you by the Student Financial Services Office.
Non-school certified alternative loans
There are student loans that do not require completion and signature by a school's financial aid officer. You might want to consider this type of loan if you-
- are not a United States citizen or permanent resident,
- are not making satisfactory academic progress, or
- are enrolled less than half time.
The requirements and terms vary from lender to lender, so carefully compare the terms of the lenders that you consider.
Non-school certified alternative loans should be disbursed by the lender directly to you and not through CSUB.
Reporting your alternative loan to CSUB
An alternative loan, whether or not it is certified by CSUB, is a resource that you must report to the Office of Financial Aid and Scholarships.
We will coordinate your alternative loan with the other aid you are receiving. If you receive an alternative loan after receiving other financial aid for the term, you may be required to repay some of all of the aid you receive.
The total of all financial aid and other resources cannot exceed your cost of attendance.