Oregon State University

Types of Aid- Other Programs

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Private Supplemental/Alternative Loan - Students needing additional funding for school, whose aid package has not fully met their cost of attendance, may opt to apply for funding through a private lending agency. These loans have a variable interest rate, and a credit check must be done on all applicants. For more information, contact the Office of Financial Aid and Scholarships or see Alternative Loans

Students needing additional funding for school whose aid package has not fully met their cost of attendance, may opt to apply for funding through a private lending agency. These loans have variable interest rates, and a credit check must be done on all applicants. The Office of Financial Aid & Scholarships cannot provide recommendations on where to secure private or alternative loans. Our best advice is for you to explore options with a lender you may already do business with and feel comfortable using. We also recommend doing your research before signing on the dotted line to be sure that you will not be in for any surprises later. The excerpts from the article below come from the Federal Student Aid website. The article can be found in its entirety here.

 

Student Loans: Avoiding Deceptive Offers

Excerpts from a joint publication of the Federal Trade Commission and the U.S. Department of Education

An education beyond high school is an investment in your future. It can be expensive and often requires you or your family to take out loans to help pay for it. Student loans fall into two categories, federal loans and private loans.

Federal loans, which are subject to oversight and regulation by the federal government, include:

  • Direct Loans, where the U.S. Department of Education is the lender;
  • Federal Family Education Loans (FFEL), where private lenders make loans backed by the federal government; and
  • Federal Perkins Loans.

Private loans, sometimes referenced as “alterna­tive loans,” are offered by private lenders and do not include the benefits and protections available with federal loans.

Whether you’re taking out a new student loan or consolidating existing education loans, the Federal Trade Commission (FTC), the nation’s consumer protection agency, and the U.S. Department of Education (ED), the agency that oversees federal student loans, want you to know how to spot potentially deceptive claims or business practices some private companies may use to get your loan business. Private companies may offer you loans and other forms of financial assistance for your education. They often use direct mail marketing, telemarketing, television, radio, and online advertising to promote their products.

Paying for your education is a serious long-term financial obligation; that’s why comparing the costs of different ways of financing your education is so important. Private loans tend to have higher fees and interest rates than federal government loans. Private loans also do not offer the opportunities for cancel­lation or loan forgiveness that are available on many federal loan programs. So it makes good financial sense to exhaust your federal loan options (as well as grants and scholarships) before considering loans from any private companies. To learn more about federal government loans, visit www.FederalStudentAid.ed.gov.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business prac­tices in the marketplace and to provide informa­tion to help consumers spot, stop, and avoid them. To file a complaint or to get free infor­mation on consumer issues, visit ftc.gov or call toll-free, 1‑877‑FTC‑HELP (382-4357); TTY: 1‑866‑653‑4261. The FTC enters Internet, tele­marketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

Federal Student Aid, an office of the U.S. Department of Education, administers the federal student financial aid — grants, loans, and work-study programs — available for education beyond high school. Federal Student Aid interacts with postsecondary schools, financial institutions and other participants in the student aid programs to deliver services that help students and families plan and pay for college.

To learn more about Federal Student Aid and how to pay for college, visit www.FederalStudentAid.ed.gov or call 1‑800‑4‑FED‑AID.

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