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Alternative loans are programs which have been created by lenders for students who do not qualify for financial aid or who have exhausted all other financial aid options. These loans are not regulated by Federal or State rules. Fees, interest rates, and repayment terms vary widely.
We STRONGLY ADVISE students to make sure they have exhausted all financial aid resources (i.e.: grants, work study, and Stafford/Direct or PLUS loans) before considering an Alternative Loan.
We recommend you research each loan option available to you and compare program features carefully before making your final decision to borrow an alternative loan. In the past year, many lenders have suspended their participation in alternative loan programs. It is important that you speak with potential lenders to ensure that you have the most current information regarding their alternative loan program(s).
You have the right to select the alternative lender of your choice. The following is a list of lenders with whom RCTC students have conducted business in the past 3-5 years. RCTC does not promote, endorse, or recommend any of these loan products or lenders by including them on the list:
- Minnesota Office of Higher Education: SELF Loan
- Wells Fargo EFS: Education Connection Loan
If you do decide to borrow an alternative loan, you will be asked to obtain RCTC's cost of attendance information as well as your estimated financial aid awards.
An alternative loan is an agreement between the borrower and cosigner and the lender. RCTC cannot in any way be held liable in the event the borrower is dissatisfied with the rates, terms, or service provided by any lender, nor is RCTC responsible for any damages incurred by the student as a result of the student's choice of lender.
Finally, when applying for an alternative loan, please keep in mind that RCTC does not participate in any alternative loan programs which require school certification. Please check with your lender to ensure that the loan you are applying for does not require a school certification.
NOTE: RCTC does not endorse or encourage participation in any one particular alternative loan program. Any unsolicited Alternative Loan Funds that arrive at the RCTC Business Office will be returned to the lender.
Updated: August 18, 2010
