»Private Alternative Loans

Many lenders offer "private alternative loans" for students who need additional aid to attend college. Most alternative loans are credit based and may require a co-signer.  The interest rate can be higher than that of a Federal Direct Loan.  In most cases the amount of the loan cannot exceed the cost of attendance minus other financial aid.

The following is a list of Chapman University’s recommended private alternative loan lenders. We recommend you review the terms and conditions of each of the lenders to obtain the loan that best meets your needs.  You can and may wish to investigate lenders that are not listed.  When you have decided on a lender, you will need to apply.   The lender will communicate with Chapman University electronically.   If the lender is not listed below, you should follow the application procedures the lender prescribes.

+-Discover Bank ~ Discover Student Loans

www.discoverstudentloans.com   Phone: 800-788-3368

About the Lender:

  • Variable interest rate starting as low as Prime Index + 0% and fixed interest rates as low as 5.49% APR.
  • Zero origination and repayment fees 
  • 0.25% Interest rate reduction available in repayment when payments are setup for automatic debit from a bank account 
  • International students may apply with a U.S. citizen or permanent resident cosigner
  • Offers graduate students a 9-month grace period in lieu of the standard 6-month
  • Offers cash reward of 2% of outstanding principal balance of the loan on the last day of the month of graduation for an eligible borrower
  • Up to 36 months deferment for military or public service
  • Up to 12 months of forbearance
www.discoverstudentloans.com

+-Sallie Mae ~ Smart Option Loan

www.salliemae.com/chapman   Phone: 888-272-5543

About the Lender:

  • Variable interest rate options. Fixed interest rate coming in May.
  • Zero origination and repayment fees
  • 0.25% interest rate reduction available for students who elect to participate in automatic debit  for loan payments
  • Loan can be for a previous balance, up to 365 days from end of loan period to time of disbursement
  • Borrower can be less than half-time
  • Borrower can be non-satisfactory academic progress
  • International students may apply with a U.S. citizen or permanent resident cosigner
  • Borrower may receive 0.5% interest rate reduction if approved with creditworthy cosigner and can receive an additional rate reduction if cosigner has better credit than borrower
  • Cosigner release after 12 months for eligible borrowers
  • Smart Reward - 2% reward in borrower’s Upromise account just for making on-time payments while in school with the Interest Repayment Option and Fixed Repayment Option

+-Wells Fargo Bank ~ Wells Fargo Collegiate & Graduate Loans

www.wellsfargo.com/jump/EFS/studentloans  Phone: 800-658-3567

About the Lender:

  • Variable and fixed interest rate options
  • Interest rate reduction available in repayment and additional rate reduction for prior relationship with another Wells Fargo product
  • Loan can be for a previous balance as long as student is currently enrolled
  • Borrower can be less than half-time
  • Borrower can be non-satisfactory academic progress
  • International students may apply with a U.S. citizen cosigner
  • Cosigner release after 24 months for eligible borrowers
  • Offers consolidation of private student loans

+-Some Additional Important Information...

While none of the recommended lenders require student borrowers to apply with a credit-worthy cosigner, all of them offer that choice.  Applying with a credit-worthy cosigner often will lower your Interest Rate significantly.  If possible, we encourage you to take advantage of this benefit.

Chapman University evaluates lenders based on the following criteria:

  1. Telephone service to borrowers.  Lenders must have toll free telephone numbers to provide counseling and support.  Preferably, telephonic communication will be available during normal West Coast business hours (8:00 am to 5:00 pm Pacific Time).
  2. Borrower benefits.  Lenders must be willing to provide reduction in interest rates, loan fees, and/or loan principal.
  3. Written communications with borrowers.  Lenders must have good written communications about their student loan products.  The publications should encompass debt management, lender contact information, loan terms and conditions, and procedures for making payments, requesting deferments and forbearance.
  4. Compatible computer system.  Lenders must possess an efficient administrative process that will assure fast, effective, loan originations.
  5. Resolution of problems.  Lenders must have in place a system that will promptly resolve any difficulties that students or the university may have.
  6. Default prevention strategy.  Lenders must have a strategy for reducing student loan defaults.
  7. Web based services.  Lenders must have a web address that will enable students to learn of the status of their loans and the terms and conditions related to their loans.  Procedures for making loan payments and requesting loan deferments and forbearance should be easily accessible.  Students should be able to print whatever forms they may need from the lender’s web site.
  8. Electronic Funds Transfer.  Lenders must be able electronically to transfer moneys from their accounts to the university so that funds can be delivered to students quickly.
  9. Email.  Lenders must have an email address and be responsive to students who use this medium to convey information and ask questions.
  10. Financial stability.  Lenders must be in good financial condition as evidenced by their annual financial reports.
  11. Sharing of borrower information.  Lenders must not transfer information about their borrowers for any purpose other than originating, servicing, or collecting the student loan.  If the lenders share information for these purposes, the entity that receives the information also must agree to not to provide the information to other interests for purposes other than management of the student loan.

Recommended Lender Selection Procedure:

  1. Lenders will be asked to submit proposals for inclusion on our recommended lender list.  The proposals should include information about how the lender meets the criteria listed above.
  2. Designated staff will evaluate the proposals.  The lenders will be ranked in two general categories: Administrative and Borrower Benefits.  The borrower benefits ranking will be determined by the amount of interest students must pay over the life of the loan and access to special benefits such as graduated repayment plans.  The administrative ranking is determined by evaluating all the other criteria.
  3. Designated staff will make recommendation for the recommended lender list to the Director.  The number of recommended lenders will be at least three.  The recommendation and its rationale will be reviewed by the Director who may approve or modify the recommended lender list. 
  4. After the recommended lenders are chosen, the listing will be posted and distributed to students.

NOTE: Students are free to choose lenders whom Chapman University does not recommend; however, processing may be delayed if the lender you choose uses computer systems incompatible with Chapman University’s software.  Also, the borrower benefits may not be as beneficial as those offered by a recommended lender.

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