Alternative or Private Loans
Many private banks and lenders offer loans for financing educational costs. These are credit-based loans and students must complete the lender's application process. Interest and payment terms vary. Students may apply for as much as the UT's cost of attendance less other aid received. See Excessive Awards for more information.
We recommend families exhaust all federal aid options before taking an alternative loan (federal loans are generally less expensive). A FAFSA is not required for alternative loans. Students who wish to take an alternative loan and do not complete the FAFSA must complete private loan counseling with their financial aid counselor prior to receiving the alternative loan funds.
Lenders may require a co-borrower, that the student makes payments while in school or other stipulations. Even if not required by the lender, students may choose to apply with a cosigner because it could reduce the interest rate. UT will process a loan from any lender.
The Financial Aid Office regularly evaluates lenders and maintains a preferred lender list of those it believes provide the best loan products and services to students. See UT's preferred lender list for more information: