{"id":293,"date":"2017-12-04T19:00:54","date_gmt":"2017-12-04T19:00:54","guid":{"rendered":"http:\/\/www.montclair.edu\/red-hawk-central\/?page_id=293"},"modified":"2025-05-23T11:06:59","modified_gmt":"2025-05-23T15:06:59","slug":"private-educational-loans","status":"publish","type":"page","link":"https:\/\/www.montclair.edu\/red-hawk-central\/financial-aid\/loans\/private-educational-loans\/","title":{"rendered":"Private Educational Loans"},"content":{"rendered":"<h2><strong>What is a Private\/ Alternative Educational Loan?<\/strong><\/h2>\n<p>A private educational loan is a non-federal educational loan through a private lending institution. Each lender has different eligibility requirements (e.g., degree status, enrollment status, US citizenship status), loan rates, repayment terms and conditions. Some lenders may also require payment of interest while students are in school.<\/p>\n<h2><strong>Consider Federal Aid First<\/strong><\/h2>\n<p>We highly recommend you complete the Free Application for Federal Student Aid (<a href=\"https:\/\/studentaid.gov\/\"><strong>FAFSA<\/strong><\/a>) and apply for any student financial aid for which you are eligible. Private educational loans should be considered after state and federal sources of financial aid have been utilized. Before choosing a private loan, review information for the\u00a0<strong><a href=\"https:\/\/www.montclair.edu\/red-hawk-central\/paying-for-college\/loans\/federal-parent-loans-plus\/\">Parent Loan for Undergraduate Students (PLUS)<\/a><\/strong>.<\/p>\n<ul>\n<li>You have a 30-day window to apply for a private educational loan and a PLUS loan to choose the best rate. This is called the<strong>\u00a0\u201cshopping period\u201d<\/strong>. Once the 30 days are up, the credit checks for all of these loans will be consolidated to one credit check.<\/li>\n<\/ul>\n<h2><strong>Things to Remember About Choosing a Private Loan<\/strong><\/h2>\n<ul>\n<li><strong>Students who are not meeting SAP<\/strong>\u00a0should always check their lender\u2019s SAP borrowing policy before applying.\n<ul>\n<li>If using\u00a0 <strong><a href=\"https:\/\/www.elmselect.com\/v4\/school\/357\/program-select\">ELMSelect\u00a0<\/a><\/strong>to research lenders, students should use the Sort &amp; Filter option and indicate: \u201cSatisfactory Academic Progress: Not Required\u201d before considering the lenders listed there.<\/li>\n<\/ul>\n<\/li>\n<li>Register for\u00a0<strong><em>ALL<\/em><\/strong>\u00a0of the courses you plan to take\u00a0<strong><em>BEFORE<\/em><\/strong>\u00a0you apply for your loan to assure your loan is certified for the correct amount. <strong>Increases may not be possible after the loan is certified.<\/strong><\/li>\n<li>Apply for the private educational loan within 90 days of the end of the semester to ensure your credit does not expire. If your credit check expires, you will need to complete a new application.<\/li>\n<li>After the application approval, choose the lender that fits your needs the best.<\/li>\n<li>A separate loan application is required for summer session(s) and for each academic year.<\/li>\n<\/ul>\n<p><em>麻豆传媒在线 does not endorse particular private loan providers. The list of lenders provided have successfully conducted business with 麻豆传媒在线 in the past. Neither 麻豆传媒在线 nor the Financial Aid Office promote, endorse or recommend any of these loan products or lenders by including them on the list. You have the right to select the private educational lender of your choice.<\/em><\/p>\n<h2>Private Educational Loan Application<\/h2>\n<p>Private education loans vary by lender. You should compare the loan terms and conditions and choose the one that best fits your situation. You can compare private loans from multiple lenders using either of the following options:<\/p>\n<p>The <a href=\"https:\/\/www.elmselect.com\/v4\/school\/357\/program-select\">Elm Select Tool<\/a> displays a neutral list of private lenders that 麻豆传媒在线 students have borrowed from in the past. 麻豆传媒在线 does not prefer, recommend, promote, endorse or suggest any of these lenders.<\/p>\n<p>The use of a lender listed on ELM Select is not required. You may choose to work directly with a particular educational lending institution or use a multi- lender, single application service. If you do choose a multi-lender, single application service it will not include a complete list of lenders for whom we have certified loans in the past.<\/p>\n<p><strong>Here are several questions you may want to consider when choosing a private loan:<\/strong><\/p>\n<ul>\n<li>What is the interest rate? Is it fixed or variable?<\/li>\n<li>What fees must be paid and when are they due?<\/li>\n<li>What are the repayment terms? Is there a grace period? Are there deferment or forbearance options?<\/li>\n<li>What will my monthly payment be?<\/li>\n<li>Do I need to be admitted to a degree or certificate program?<\/li>\n<li>Do I need to be enrolled at least half-time?<\/li>\n<li>Is there a Satisfactory Academic Progress requirement?<\/li>\n<li>Can the loan be applied to past periods of enrollment? If so:\n<ul>\n<li>Within what timeframe must students apply if they are still enrolled at 麻豆传媒在线?<\/li>\n<li>Within what timeframe must students apply if they have withdrawn or graduated from 麻豆传媒在线?<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<hr \/>\n<h2><strong>Refund Checks<\/strong><\/h2>\n<p>If you have received a refund after all your loans have been disbursed the following options are available:<\/p>\n<ul>\n<li>You may keep the refund and use for winter or summer classes and\/or educational expenses.<\/li>\n<li>You can request for a reduction of their loan in the current semester,\u00a0<strong>cash the check<\/strong>\u00a0and then pay student accounts the balance owed from the loan reduction\u00a0<strong>(Recommended)<\/strong>.<\/li>\n<li>You can request a reduction of the loan for the upcoming semester and use the refund to pay the balance for the upcoming semester.<\/li>\n<li>You can also use the money to pay the lender back directly. If you choose this option, make sure you will not need the excess later as we may not be able to increase your cost of attendance to allow for an increase in the loan.\u00a0<strong>(Consult a loan counselor to ensure this is the best option)<\/strong><\/li>\n<\/ul>\n<hr \/>\n<h2><strong>Private Loan Policy <\/strong><\/h2>\n<p>麻豆传媒在线 is a school that uses a \u201cHistorical Lender List.\u201d Historical Lender Lists are a neutral approach that do not offer preferential treatment towards lenders. 麻豆传媒在线 does not promote the use of any specific lender.<\/p>\n<ul>\n<li>Advising may be provided to students regarding the school\u2019s ability to certify loans from specific lenders due to eligibility requirements<\/li>\n<li>Advising may be given as requested on how to find a loan appropriate to the student\u2019s eligibility requirements<\/li>\n<\/ul>\n<h3><strong>Definition of Private Educational Loan <\/strong><\/h3>\n<p>Private educational loans are exclusively for educational purposes and are defined as loans that are not provided through the Federal Direct Lending program (Stafford, PLUS, Perkins).\u00a0 Other private loans that are not exclusive to education (e.g. personal loans, line of credit, etc.) may be used by students and\/or families for educational purposes are not defined as private educational loans.<\/p>\n<h3><strong>School Certification Requirements<\/strong><\/h3>\n<p>麻豆传媒在线 (hereby referred to as the University) does not require that a student obtain a private educational loan. It also does not require that the loan be certified by the University. However, the University will not include any loan that does not require school certification on the University\u2019s historical list.<\/p>\n<p>Loans not certified by the University will not be processed and posted through financial aid.<\/p>\n<p>If a loan is not certified by the University, the University will not certify that loan to be included in future consolidation loans where required.<\/p>\n<h3><strong>ELM Select<\/strong><\/h3>\n<p>The University uses ELMSelect for processing certifications, making modifications and disbursements. The ability to process, certify, or disburse loans through ELM select is not required. If a lender does not process funds through ELMSelect, they may use another means to have us certify the loan.<\/p>\n<h3>Loans for Students Entering With, But Not Limited To, F or J Visas<\/h3>\n<p><strong>Policies:<\/strong> Lenders who specialize in lending to only international students do exist and are listed on ELMSelect.com, as well as on other lending sites.<br \/>\n<span style=\"font-weight: 400\">\u00a0Students are encouraged to review all of the lenders that may be available to them on ELMSelect.com, as more lenders are adding products for international students and this policy applies to certification requests submitted to financial aid for international students.\u00a0<\/span><\/p>\n<p><strong>Procedures:<\/strong> <span style=\"font-weight: 400\">麻豆传媒在线 receives certification requests for students who are entering school with, but not limited to, F or J visas.<\/span><\/p>\n<p>In order to certify these loans, 麻豆传媒在线 must ensure that the student is meeting the minimum registration requirements as set out by U.S. federal regulations:<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Graduate Degrees other than the Artist\u2019s Diploma: enrollment in a minimum of 9 Credits<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Artist\u2019s Diploma: enrollment in a minimum of 6 Credits<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Undergraduate Degree: enrollment in a minimum of 12 Credits\u00a0<\/span><\/li>\n<\/ul>\n<p>In addition, 麻豆传媒在线 will only certify the private educational loan if the student is registered and an accurate Cost of Attendance\/Budget (COA) is calculated.<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">麻豆传媒在线 will certify loans based on the academic year (AY) which begins with fall.<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">COA is based upon semester enrollment.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A student seeking a loan for a full year in January will have a loan certified only for the terms within the AY in which the student will be enrolled (spring or spring\/summer).\u00a0<\/span>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A new loan must be submitted for the next fall\/spring.<\/span><\/li>\n<\/ul>\n<\/li>\n<li>Prior to certification, students need to complete a <a href=\"https:\/\/docs.google.com\/forms\/d\/e\/1FAIpQLSdTTRIBaEuNV4BXpL2CXq14RpTxm-R-ctcVEGIa9cQMzPqyvQ\/viewform?usp=sf_link\">Precertification Form<\/a> for review. Students must be logged into their @montclair.edu email account to respond.<\/li>\n<li style=\"font-weight: 400\">The student who borrows from an exclusively international lender will have an opportunity to respond with a Cost of Attendance Re-evaluation Request (with supporting documentation) before the loan is sent to the lender for final processing. A link to the Cost of Attendance Re-evaluation Request Form is provided on the <a href=\"https:\/\/docs.google.com\/forms\/d\/e\/1FAIpQLSdTTRIBaEuNV4BXpL2CXq14RpTxm-R-ctcVEGIa9cQMzPqyvQ\/viewform?usp=sf_link\">Precertification Form<\/a>.<\/li>\n<li style=\"font-weight: 400\">Prior to loan disbursement, registration will be monitored for all students with a private educational loan.\n<ul>\n<li style=\"font-weight: 400\">If student withdraws from courses prior to the end of Add\/Drop or they defer their enrollment to a later date, the private educational will be cancelled and\/or rejected via ELM.<\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Records of these transactions will be maintained within Financial Aid for a period of three years.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><strong>Single Application\/Multiple Lender Service Sites<\/strong><\/h3>\n<p>The University permits loans to be obtained by the student outside of the historical lender list and the ELMSelect site. The University may provide information for an external third party site that provides a single application platform for multiple lending services as long as it:<\/p>\n<ul>\n<li>Provides a beneficial service to the student\/family.<\/li>\n<li>Includes loans that are part of the historical list.<\/li>\n<li>Does not promote preferred lenders above any of the lenders included on the site.<\/li>\n<li>The University will provide a link to the site, but will also include a disclaimer that not all loans are provided from the historical list.<\/li>\n<li>The University encourages students to research their options carefully before choosing a loan through a single application platform service.<\/li>\n<\/ul>\n<h3><strong>Non-Traditional Educational Funding<\/strong><\/h3>\n<p>The University does not promote private educational funding products that do not fully disclose the nature of their costs. For example, Income Share Agreements (ISA) must disclose that their product does not provide the same protections that are given through The Truth in Lending Act. Lender disclosures may not present any information that is potentially misleading such as implying that there is no interest paid on the loan. To be included on ELMSelect or any other listing service that is used for processing by the University, the product must be able to be displayed under its own category where the University can add disclaimers and provide information to the student about ISA and the difference between an ISA and a loan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What is a Private\/ Alternative Educational Loan? A private educational loan is a non-federal educational loan through a private lending institution. Each lender has different eligibility requirements (e.g., degree status, enrollment status, US citizenship status), loan rates, repayment terms and conditions. Some lenders may also require payment of interest while students are in school. 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