The Higher Education Act of 1965, as amended (HEA) prohibits institutions from refusing to certify a loan because of the borrower's choice of lender (or guaranty agency). SUNY Fredonia participates in the Family Federal Education Loan Program (FFEL), and this law and regulation applies to all schools that participate in the FFEL Program. Students and their parents should understand that they are not required to use any of the lenders on SUNY Fredonia's "Recommended Lender" list, and are free to select the lender of their choice. SUNY Fredonia will promptly certify any loan from any lender selected by a borrower. Lenders who are included in SUNY Fredonia's "Recommended Lender" list disclose agreements to sell their loans to other entities. The selection of lenders for inclusion on SUNY Fredonia's "Recommended Lender" list is based solely on the best interests of the students and parents who may rely on such a list.
In compliance with the New York State Attorney General's Code of Conduct, the process through which recommended lenders are selected is fully disclosed through SUNY Fredonia's Request for Information (RFI) process.
Click Here to view the criteria used (RFI) to determine SUNY Fredonia's Recommended lender list.
How do I apply for an Alternative Loan?To apply for an Alternative Loan at SUNY Fredonia access our recommended lender comparison list via the "Apply On-Line for Alternative" link below. Once you are approved through one of our recommended lenders, the Financial Aid Office will certify the amount of the loan that the borrower is eligible for and subsequently transmit this information back to the lender for a final guarantee. For more information regarding alternative loans and other financing options view the Alternative Options Guide.
What requirements do I have to meet?Borrowers will be evaluated based on credit history, debt to income ratio, and work history. A student can be approved when applying alone but will typically require a co-borrower. Filing a Free Application for Federal Student Aid (FAFSA) is not required to receive Alternative Loan funds. However, you should contact the Financial Aid Office if you wish to waive your right to Federal Aid.
How much can I borrow?The yearly limit on an Alternative Loan is equal to your cost of attendance minus any other financial aid you are awarded. For example, if the institutional cost of attendance is $16,000 and you receive $6,000 in other financial aid, you can borrow up to $10,000.
Who receives my Alternative Loan funds?Funds are electronically transmitted to SUNY Fredonia's Office of Student Accounts. The money will then be applied to your tuition and fees, room and board, and other school charges. If any loan money remains, you will receive the amount as a check. Any remaining loan money must be used for your education expenses.
What's the Alternative Loan interest rate?The interest rate is typically based on Prime or LIBOR and a credit check performed by the lender. There is no cap on interest rates for the Alternative Loan. Interest is charged on the loan from the date the first disbursement is made until the loan is paid off.
When do I begin repaying the loan?Repayment can begin within 6 months of when you graduate or drop below half time. Check with your individual lender for repayment terms and conditions.
Click here to Apply On-Line for Alternative.