Alternative Student Loans
Alternative student loans are private, direct-to-consumer loans used to assist with educational expenses not covered by federal aid. In most cases, it is most beneficial to the student and family to use a Federal Parent (PLUS) Loan instead of an alternative loan. You may check with your bank for alternative loans that do not require school certification. North Country does not service alternative loans or provide customer service to students who have problems with these loans. Please consider the information below before deciding to borrow an alternative loan.
Private Education Loan Applicant Self Certification
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PLUS
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Private
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Borrower
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Parent
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Student, but cosigner is often required
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Interest Rate
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Fixed at 8.5% (subject to legislative changes July 1, 2008)
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Variable, subject to change monthly
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Capitalization of interest
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Once at repayment
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Can be as often as monthly
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Amount borrowed
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Up to the cost of education minus other aid
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Loan limits vary by lender and/or program
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Eligibility
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Based on credit NOT income
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Based on credit and income
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Loan discharged upon death or permanent disability of borrower
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YES
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Varies by lender
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Repayment
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Begins within 60 days of final disbursement and has a 10 year repayment plan, can be interest only while student in school
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May begin immediately, varies by lender
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Deferment and/or Forbearance
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Various flexible options available
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Limited options available
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