Private student loans (alternative loans) are credit-based loans provided by nationally recognized lending or banking institutions to eligible students. The maximum amount a student may borrow per academic term is the total cost of attendance minus the total of other financial aid received. Loans will typically be scheduled to disburse at the start of each term. Before applying for an alternative student loan, students are encouraged to maximize their federal student loan options, if applicable.

To assist you in finding an alternative student loan, American University now provides a tool where you can compare lenders online side by side. This website includes a historical listing of lenders who have served our students in recent history. Not all lenders participate in the online comparison tool, and a PDF copy of our historical list of lenders is included below. You may select any lender of your choosing, and you will not be penalized for choosing a lender not already listed. American University does not endorse, recommend, or promote any of the listed lenders.

Historical Listing of Lenders

You may apply with any lender of your choosing. However, you are responsible for comparing the terms of the loans you are considering and selecting the loan that will best meet your needs. The following are some tips for you to consider when evaluating your options.

• Interest Rates - Some loans, like the Federal Direct Loans, have a "fixed" interest rate, meaning that the rate will not change over the life of the loan. Many alternative loans will have a variable interest rate, meaning that the rate can change over the life of the loan based on market rates. Variable interest rates can increase significantly, resulting in higher minimum monthly payments or more payments over the life of the loan.
• Loan Fees - Some common fee names are origination fee, disbursement fee, or default fee. Some lenders may have a sliding scale of the fee that is charged based on the strength of your credit.
• Benefits - Front-end benefits are discounts offered up front when the loan is disbursed. This can be a reduction of fees or a rebate. Back-end benefits are discounts offered when the student goes into repayment. These might include an interest reduction for auto-debit payments. It is best to focus on discounts which you can't lose or on discounts that are immediate. Be aware of fine print that requires you to repay a fee rebate if you consolidate with another lender or charges a penalty to pay off the loan early (pre-payment penalty).
• Processing Time - Find out from your lender how long it typically takes to process a loan application and whether it is a paper process or an electronic process. A paper application process can take 6-8 weeks if an original document needs to be mailed back and forth.
• Customer Service - Lenders can let you know their average response time and satisfaction ratings. Many lenders will also now provide self-service options via phone or the internet, allowing you to get information on your loans even faster.
• Will the lender sell the loan to a different lender in the future? Some lenders will hold the loan for the life of the loan, guaranteeing you their service until you finish repayment. Other lenders may sell your loan to a new servicer.

Students interested in applying for an alternative loan must follow the instructions from the lender carefully. These instructions will guide the applicant step by step through the process.

1. Submit a loan application directly to the lender of your choice. You should submit this at least two months prior to when you will need the funds to ensure adequate processing time by both the lender and American University. Applying with a creditworthy co-borrower can enhance your credit rating and lower your interest rate and fees.
2. Enroll in your classes. Your loan application will not be certified until you are enrolled in the minimum number of credits required by the lender and/or loan product.
3. Notify the AUWCL Financial Aid Office by email that you are approved for a private loan and confirm your registration for the applicable semesters.
4. Once the loan has been certified by the AUWCL Financial Aid Office, you will receive a financial aid offer notice indicating the amount of the loan that has been approved for the applicable terms. Note: The loan will appear in an estimated status until the funds have been received from the lender.
5. Loan funds will be applied to your student account when American University receives them from your lender. Most lenders will send their funds via EFT, but a small number will still send a paper check. You will be notified if a paper check requires your endorsement. Student enrollment is verified prior to disbursement.
6. All nonfederal loans require a new Private Education Loan Applicant Self Certification form. This form must be completed by the student, signed and returned to the lender before any funds can be disbursed. Your lender may provide a blank form to you as part of the application process. Note: A "rescission period" is mandated by the federal regulations. The intent of the rescission period is to allow borrowers a final opportunity to evaluate their needs for a private student loan and/or cancel the loan without penalty. Lenders cannot disburse funds until the end of the rescission period. The actual time frame for disbursement will vary from lender to lender. If you have completed all paperwork with your lender, then funds will pay at the start of the term or approximately 2-3 weeks after the loan is certified by AUWCL Financial Aid, whichever is later.