Students are encouraged to maximize their federal loan borrowing (subsidized and unsubsidized Direct Loans) before using alternative/private loans, and Parents are encouraged to compare the Federal PLUS loan (http://www.studentloans.gov) to the alternative/private loan options they may be considering.
In addition to the Federal Loan Programs, there are alternative/private loan options for students seeking 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 that Direct Loans, a little research can result in significant savings. Many companies offer numerous alternative loan options, so students are can find a loan that meets their needs. Any student enrolled in 6 or more hours, who is a US citizen, permanent resident, or international student who is a temporary resident is eligible to apply for a Private Educational Loan.
UMHB utilizes ELM SELECT to provide students and parents with information about alternative/private loans that previous UMHB students have used. ELM SELECT lets you to compare several items such as loan rates, length of repayment, monthly payment amounts, etc. The lenders listed at ELM SELECT have had a proven and consistent partnership with UMHB through the years. If you desire to use any other lender to obtain a private loan you are welcome to do so, but please notify the Financial Aid Office so we can expedite this process. In confirmation of the federal disclosure requirements of HES Sec. 487(a) (27) and (h)), none of the lenders listed is an affiliate of any other lender on the list.
Please remember: These loans are credit based and will require a 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 requested on your initial application.
It is strongly recommended that you thoroughly research each option and determine which of the suggested lenders offers a loan which fits with your individual needs or circumstances.
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.