Private alternative loans are available to those graduate students who feel they will need more than the $20,500 maximum available from the Federal Stafford Loan program or students enrolled in certificate programs which are not Stafford or Graduate PLUS eligible. Most private alternative loans will allow a student to borrow up to the cost of attendance minus any other aid.  Private alternative loans generally require school certification of enrollment and eligibility information.  In most cases the lender forwards this request to the school after your completion of the initial application, the disclosures, and the self-certification form.  Please be sure that the loan program for which you applied has received all required information, and has GW’s contact information on record.  Each private alternative loan product has specific enrollment level requirements and prior balance coverage standards.  When applying, make sure the products enrollment requirements and other standards meet your specific needs.  Also be aware the final approval and disbursement decision rests with the lender. School certification of the eligible amount is not a guarantee of fund delivery. 

We will certify any private alternative loan application submitted to the Office of Student Financial Assistance accompanied by the required Loan Questionnaire. It is wise to shop around different lenders and products to find the loan option that best suits your needs.  An internet search for “Private alternative student loans” provides a valuable starting point for both learning about the terms of the loans and reviewing the products available from various lending institutions.  

THE APPLICATION PROCESS FOR ALTERNATIVE LOANS AND THE PROCESS FOR HOLD LIFTS

New federal regulations on the processing of Alternative Loans went into effect on February 14, 2010.  Federal regulations have added several steps to the processing of alternative loans and you must be aware of the following that will slow down the process considerably.

Those students who intend to apply for an alternative loan to have a Student Accounts Hold lifted for advance registration must now start the application process at least four weeks prior to the date on which they are scheduled to register for the upcoming semester.  Several steps will have to be completed before the lender will provide the Office of Student Financial Assistance with a certification form.  Until we have received the funds from the lender, there will be no action that the aid office can take about requesting that the ‘hold’ be lifted.

One of the requirements is that the student must complete a ‘Private Education Loan Applicant Self-Certification Form’ and submit it to the lender.  Your lender will make this form available to you.  The information necessary to complete the form is available on our website at https://banweb.gwu.edu/.  Since this is your personal award information, you will need to log in using your USER ID and PIN.  You will be able to access both your award and Cost of Education information.  If you prefer, you can visit Colonial Central (located on the ground floor of the Marvin Center) or call us at 202.994.6620 for assistance.

When you apply for an alternative loan, please be sure to follow the instructions from your lender carefully.  These instructions will guide you step by step through the new process.

In addition to the extra steps involved in the application process, there will be a delay of up to at least ten business days before the loan funds will be disbursed to the University to be credited to your account.