Alternative Loans

http://federalstudentaid.ed.gov/federalaidfirst/

Student should always explore options available to them through the federal aid process before choosing an alternative loan. Alternative loans are credit based loans that the student would need to apply for directly with a lender of their choice. Students are strongly encouraged to apply for the alternative loans with a credit worthy co signer. We offer a Preferred Lender List or the student can apply with a lender outside of the list. Please keep in mind that we will certainly welcome all approved loans. Please plan accordingly to ensure that your lender will disburse the funds based on their process to meet all deadlines. The lender will send a Disclosure statement to the borrower with the expected disbursement date. Also, it is possible that students and co signers would receive an interest rate based on the tier the lender has to offer. Depending on their credit, the interest rate could be at a rate that is more beneficial than the federal loans offered. This is a case by case situation and solely depends on credit and the lenders interest rate options.

  1. Student (and co signer when applicable) applies for the loan directly with the lender of their choice. There is a disclosure released to the student during the application process. This disclosure will also include an example of the total cost of a loan based on maximum interest rate.
  2. The lender would complete a credit check after all necessary documentation has been submitted for the application process.
  3. The lender will send a second disclosure to the borrower (and co signer) to advise of the credit decision. For approved loans, this disclosure would advise of the rate, fees, and other terms of the loan product the student is applying for. This disclosure would also include an estimated total repayment amount based on both the current interest rate and the maximum interest that can be charged on this loan. In the event that the lender has denied the application, the school will not be able to access the reason why the loan was denied nor will the school be able to advise the student of the denial.
  4. If the loan is approved, the lender will mail out disclosures to the student. The disclosures advise of scheduled disbursement dates, the interest rate, repayment start date, and other important information pertaining to the loan.
  5. The student will be required to complete a Self Certification Form at some point in the loan process. The process varies based on the lender the student selects. The student can get a copy of the self certification form from the lender or the school. The student is responsible for completing and returning this form to the lender in which they have applied for the loan. Students should inquire with the lender when in the application process is the Self Certification Form completed. The student will need to get the actual cost of attendance from the Office of Students Accounts website or HU Net. The loan will not disburse until the form is completed and returned to the lender.
  6. The lender is required to allow 30 days from loan approval for borrower to decide whether or not to take the loan. During this period the lender cannot change the rates or terms of the loan.
  7. The lender must allow cancellation within 3 days of consummation. There will be a third disclosure mailed to the student at the time of consummation. This disclosure would include the updated cost of the loan and the three day right to cancel policy.
  8. Hampton University’s disbursement dates are generally scheduled every Tuesday and Thursday. Students are strongly encouraged to view HU Net after 5pm on the scheduled disbursement date to view their student account balance. If the student is due a refund, The Office of Student Accounts would be able to now process that refund. It is the advice of this office that students sign up for E-Refund on HU Net to expedite the refund process. For further information on the E-Refund process, please contact the Business Office at 757-727-5661 or toll-free at 1-800-624-3327.
  9. If you need to make changes to your loan, we have forms available for you to decrease, cancel, use the loan for a previous balance, use the loan for one semester only. Please use these forms when requesting changes to your loan. Private loan increases would require student (and co signer) requesting the additional funds through the lender and possibly another credit check.