If the government determines you have an EFC of $20,000 a year for school out-of-pocket, the school will try to make up the remainder of the tuition with an aid package consisting of federal loans, grants, work study and/or scholarships. However, if you can't meet that expected family contribution and/or the school cannot meet your need in full, alternative loans make up the difference.
Alternative loans are loans lent by banks, credit unions and private lending companies rather than the federal government and are specifically for education purposes. Many alternative loans mimic some features of federal Stafford loans and are below market rate. (Many lenders may require the student to take out the maximum Stafford loan amount before any alternative loans will be approved.) The research required to gauge the value of the scores of companies offering alternative loans can be daunting, but take heart: We've saved you that research time. Our selected lenders offer a comprehensive range of loan types to suit a variety of needs.
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