Kansas Wesleyan University :: Enrollment and Financial Services

Alternative Loans

Alternative Loans are offered by private for-profit lenders to students for educational purposes. Before students consider an alternative loan, it is important to understand that Federal Direct Stafford loans-- Subsidized and Unsubsidized Stafford Loans, and Parent (PLUS) Loans should be exhausted first, because the federal programs will always have better interest rates and terms than private alternative loans. The amount of the interest rate for your alternative loan will depend upon your credit rating (or that of your co-signer). If your parent is willing to co-sign the alternative loan for you, they should consider applying for a Federal Parent Loan before doing so due to lower interest rates. (The student can always make the loan payments on the Federal Parent Loan).

In seeking alternative loans, students may borrow from the lending institution of their choice based on the criteria most relevant and important to their situation. Kansas Wesleyan University has established an electronic processes with four lenders: Discover, Sallie Mae (Sallie Mae Education Trust or Fifth Third Bank), and Wells Fargo.

The following lenders have been selected because they offer credit based private loans for students that are deferred for half time or greater, and offer a six month grace period after school before repayment begins. Note: Sallie Mae requires the borrower to pay “interest only” payments each month after funds are disbursed.

AMOUNT

REQUIREMENTS/DESCRIPTION

Alternative Loans

Varies.

Credit based loans for students. The loan principle is deferred for half time students, has a six month grace period after school before repayment begins. Repayment period varies between 5-15 years. Apply for the entire year; however, funds are disbursed each semester. A co-signer is highly recommended to reduce the interest rate. Variable interest rate currently between 4.25 and 12.75%, dependent upon credit.

Discover - http://www.discoverstudentloans.com

Sallie Mae – Click here to apply

Wells Fargo - http://www.wellsfargo.com/student/undergrad/collegiate

Discover “Certified Private Loan”:

Apply on line at www.discoverstudentloans.com
Sign the loan electronically with e-sign process.
Your co-signer can e-sign online also
KWU will receive notification to certify your enrollment here, therefore allowing Discover to release the funds to the school into your student account each semester.
To check the status of your application or to apply by phone, call 1-877-728-3030.

Sallie Mae “Smart Option” Private Loan:

Apply online Click here to Apply
Sign the loan electronically.
Have your co-signer sign electronically (give them the password or PIN# that Sallie Mae issued to you.)
KWU will receive an e-mail notification to certify your enrollment here, therefore allowing Sallie Mae to release the funds to the school into your account each semester. *Note: Sallie Mae requires the borrower to pay “interest only” payments each month after funds are disbursed.
To check the status of your application or to apply by phone, call 1-800-695-3317.

Wells Fargo “Collegiate Loan”:

Apply online at www.wellsfargo.com/student/undergrad/collegiate
Sign the loan electronically with PIN# that Wells Fargo issues to you.
Have your co-signer sign electronically with PIN# that is issued to them as well.
KWU will receive notification to certify your enrollment here, therefore allowing Wells Fargo to release the funds to the school into your student account each semester.
The check the status of your application or to apply by phone, call 1-877-566-6733.