These loans are nonfederal loans, made by a lender such as a bank, credit union, state agency, or a school. MHCC does not offer private loans. Students wishing to have MHCC certify a private loan must:
- Be enrolled in at least 6 financial aid eligible credits
- Be a degree/certificate seeking student
The Financial Aid Office can only certify up to the unmet need or the cost of attendance (see Budget worksheets at www.mhcc.edu/FinancialForms/). The Financial Aid Office will contact the student before certifying a private loan to ensure understanding of possible Federal Direct Loan (FDL) eligibility.
Private loans are not federally guaranteed or governed by the US Department of Education. MHCC does not make lender or loan program recommendations. Borrowers should carefully review terms and conditions, which vary by lender and loan. To be eligible, a student must often have a co-signer with qualifying income, time-on-job, debt-to-income-ratio, and other considerations. In the student's best interest, MHCC’s Financial Aid Office generally certifies this type of loan only after the student has exhausted all FDL options. MHCC retains the right to refuse certification based on professional judgment.
Communication is Key: Alternative loans are different from most other types of financial aid in that you need to be in close contact with the lender rather than the school to ensure your loan is processed in a timely matter.
Processing Deadlines: Due to lender policies regarding credit checks and other factors, there are processing deadlines that you need to make sure you are aware of; contact your lender for details.
Loan Amounts: Be aware that any co-signers of an alternative loan may adjust your requested loan amount. Discuss the loan with your co-signer to make sure you have agreed upon the amount you may borrow.