Private Alternative Loans

In addition to the Federal Loan Programs available, there are several loan options for students who are searching for additional funds to help finance their undergraduate or graduate education.

Alternative Loan Programs are created by private lenders specifically to fill the gap between the financial aid awarded and the actual cost of education. Although alternative loans can be more expensive than Direct Loans, a little research can result in significant savings. Many companies offer numerous alternative loan options, so students are quite likely to find something that fits their needs. Any student enrolled in 6 hours or more, who is a US citizen, permanent resident, or international student who is a temporary resident is eligible to apply for a Private Educational Loan.

The lenders below have a proven and successful consistent partnership with UMHB through the years. If you desire to use any other lender to obtain a private loan, please notify the Financial Aid Office. In confirmation of the federal disclosure requirements of HEA Sec. 487(a)(27) and (h)), none of the lenders on the Lender List below is an affiliate of any other lender on the list.  Please remember:  These loans are credit based and will require a full credit check. Final approval amounts are determined by the Office of Financial Aid once a request for certification is received from your lender.

Be aware that due to Federal Policies governing educational lending, the amount certified by UMHB may be less than the amount you request on your initial application. It is strongly recommended that you thoroughly research each option and determine which of the following lenders offers a loan which fits with your individual needs or circumstances.

Please use the links below to vist the lenders' websites.

• Wells Fargo
• PNC Solution Loan
• Bank of Lake Mills
• Sallie Mae
• CitiAssist Loan (Citi - The Student Loan Corporation)
• TruFit (Charter One)
• Discover Student Loans
• Union Federal

Students should keep in mind that the Federal Consolidation Loan program consolidates only federal loans. This excludes all loans received privately. Some alternative loan lenders may offer loan consolidation programs that will consolidate both federal and alternative loans. However, these consolidation loans are usually offered at much higher interest rates than that of the federal program. Students should ask lenders about consolidation options and their costs before committing to an alternative loan.

B-On-Time Loans

Texas B-On-Time Loans are loans made available to students on an academic year basis who have filed a complete and accurate U.S. Department of Education Free Application for Federal Student Aid (FAFSA).  It is a loan program with a loan forgiveness component.  The determination of eligibility for loan forgiveness is made on the basis of whether the student completes a baccalaureate degree within four calendar years, (in some cases an approved five year program) after the date the student initially enrolled in an eligible institution.  If the student is not eligible to have the loans forgiven, the loans are repaid at zero percent (0%) interest. 

Each year the State determines the aggregate amount of the B-On-Time award which UMHB will receive, and the maximum per-student award amount.  Only full-time students who are Texas residents, maintain a 2.5 GPA (repeat borrowers only), have completed fewer than 150 semester credit hours, and are maintaining Satisfactory Academic Progress (SAP) are eligible to receive the funds.  

According to the state of Texas B-On-Time regulations, awarding preference is given first to students who have previously received B-On-Time funds, and then to new borrowers with demonstrated financial need – information provided by the current year FAFSA (Texas Administrative Code, subchapter E, Rule 21.124).  If additional funds are available, first-time borrowers may be added to the program, as funding permits.

Please note:  B-On-Time is a loan which, if not forgiven, must be repaid.  Repayment begins six months after the borrower graduates or ceases to be enrolled at least half-time at a post-secondary college or university.  The loan repayment schedule will call for a minimum monthly payment of $75 or an amount required to repay the loan within 15 years, whichever is greater.  For further information concerning the B-On-Time Loan, please visit www.hhloans.com

College Access Loan (CAL)

The College Access Loan Program provides alternative (private) education loans to Texas students who are unable to meet the cost of attendance.  The CAL may be used to cover part or all of the student’s Expected Family Contribution (EFC); students do not have to demonstrate financial need.  Students must be enrolled at least half-time, be a Texas resident, maintain satisfactory academic progress and receive a favorable credit evaluation or provide a cosigner who has good credit standing and meets other requirements.  For further information, or to apply for the CAL, please visit www.hhloans.com.