Alternative Loans
Alternative Loan and Payment Providers
Loan options which are available to families for financing a Caltech education, are listed below. Most of the options described are available independent of the "need" concept associated with the traditional financial aid programs offered by Caltech. This information does not constitute an offer or an endorsement by Caltech of any particular program, and accordingly, families should inquire directly for complete details regarding the individual programs listed here.
Key Education Resources
(800) KEY – LEND
http://www.keybank.com/education
Nellie Mae
(800) 634-9308
http://www.nelliemae.com
Sallie Mae
(800) 695-3317
http://www.salliemae.com
The Education Resources Institute (TERI)
(800) 255-8374
http://www.teri.org
eStudentLoan.com
http://www.estudentloans.com/
campusdoor.com
(800) 786-0002
http://www.campusdoor.com
Wells Fargo Collegiate Loan
(800) 658-3567
www.wellsfargo.com/student/loans/undergrad/collegiate.jhtml
What to Look for When Evaluating Alternative
Loan Programs
Interest Rate
- What is the interest rate indexed to (i.e., prime, T-bill (length), commercial paper)?
- Is the interest rate fixed or variable?
- Is the interest rate capped?
- How frequently is interest compounded or capitalized?
- What is the annual percentage rate (APR) versus the indexed rate?
Borrower Eligibility
- What are the enrollment criteria (i.e., full-time, part-time, citizenship)?
- What are the institutional criteria (i.e., degree-granting program, certificate, etc.)?
- What are the geographic criteria?
- What are the academic criteria (i.e., science, engineering, law, medicine, etc.)?
Loan Limits
- Is there an annual aggregate limit? Total aggregate limit?
- Is there a need determination criteria (i.e., cost minus aid)?
Repayment Terms
- What is the length of repayment?
- Are there flexible and/or graduated payment options?
- Is there any prepayment penalty?
- Does the loan have a grace period prior to repayment?
- Is the repayment amount fixed or variable?
- Is there deferment of interest and/or principal during in-school period?
- Are there charges/penalties for late payments?
- Are there borrower benefits for on-time repayment?
Fees
- What is the application fee (i.e., amount, refundable, annual or one-time- only)?
- What is the insurance or guarantee fee?
- What is the origination fee?
- Is the fee added to the amount borrowed or deducted at disbursement?
Credit Criteria
- Is it based on borrower and /or cosigner creditworthiness?
- Is it based on good credit or merely an absence of adverse credit?
- Is it based on a maximum allowable indebtedness?
- What measures does lender have in place if a family’s situation changes?
- Is it based on debt-to-income criteria? If so, what expenses are considered in calculating the debt-to-income ratio?
- Is there a minimum income criteria?
- Must the borrower be employed?
- Are the fees or interest rate tied to borrower’s creditworthiness?
Lender Reputation
- How available or accessible is the lender (i.e., toll free telephone number, hours of service, web interactivity, etc.)?
- Is the capital limited?
- Does the lender require a business relationship with the borrower?
- What type of education finance experience does the lender have?
Administration
- What is the acceptance rate for applications?
- What is the customer service record of the lender or servicer?
- What is the turn-around time from application to disbursement?
- Does the loan require school certification?
- What are the disbursement policies (i.e., Are there multiple disbursements? Where will the check be sent? Who will be responsible for the money?)?
- What happens to the loan at repayment?
- How is the out-of-school servicing done?
- What is the billing method (i.e., payment coupon booklet, monthly billing statements, ability to authorize funds from borrower’s bank account monthly, etc.)?
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