Private Student Loans

Private student loans (also interchangeably called education or alternative student loans) are designed to bridge the gap between college costs and traditional financial aid resources. They may be used to help pay for current term expenses, past due balances from a previous term or academic year, and can also be used for students who are enrolled less than half time.

Private student loans cannot exceed the Cost of Attendance minus other financial aid the student is receiving. They are offered and serviced by private loan lenders.

California Lutheran University will only certify private student loans for students who are meeting Satisfactory Academic Progress (SAP).

Federal vs. Private Loans

If you are deciding between a federal student loan and a private student loan, carefully compare the pros and cons of each.

Completing the FAFSA may make you eligible for federal loans or other Title IV aid, which often offer more favorable terms than private student loans. In general, students should use their federal loan options before considering private student loans.

For guidance, review this comparison diagram from Federal Student Aid to help determine which loan type best fits your needs.

Processing Timeline

Loan Application: You select a lender, apply for the loan, and the lender makes a credit decision.

Cal Lutheran Private Loan Request Form: You complete & submit the required electronic form to the Cal Lutheran Financial Aid Office.

School Certification: The school confirms your cost of attendance, other financial aid, and approved loan amount.

Final Disclosure: The lender issues a final disclosure, which includes a three business day right to cancel.

Disbursement: Funds are typically sent directly to Cal Lutheran about 10 days after certification and applied to your student account.

Procedure

You must complete the 3 steps below in order to receive a private student loan.

STEP 1 - Select a loan lender

Select a Loan Lender

Based on a review of factors such as borrower benefits, Cal Lutheran offers a Lender Search Tool that lists lenders currently participating in private student loan lending.

Eligibility for a private student loan is typically based on the student's and co-signer's (if required) credit history. Most loan lenders allow students to determine if they would like to have a fixed or variable interest rate and when their repayment will begin.

Lender Search Tool Disclosure

Cal Lutheran is an impartial party and does not endorse any specific lender. Use of this list is optional, and lenders are displayed in random order.

Neutral Processing Statement

All private student loan certifications are processed equally and without prejudice, regardless of lender. Selecting a lender not included in the tool will not delay certification.

Lender Search Tool

UNDERGRADUATE

PROFESSIONALS

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STEP 2 - Apply for a loan from your chosen loan lender

Apply for a Loan

After selecting a private student loan lender, complete the lender’s loan application, which is typically available online through the lender's website.

Important: If your loan has already been approved, proceed directly to Step 3.

Self-Certification Form (If Requested)

Most lenders include the certification form within their online application, so a separate self certification form is usually not required.

Only follow the instructions below if your lender specifically asks you to complete one. If so, download the Alternative Loan Self-Certification Form.

Self-Certification Form Information

The Title X of the Higher Education Opportunity Act (HEOA) requires that a series of three loan disclosures be provided to Alternative Loan borrowers throughout the application process and that the borrower also complete an Alternative Loan Self-Certification Form prior to the loan being disbursed.

The purpose of the disclosures is to:

Present the terms/cost of the loan in a clear and consistent manner.
Allow for comparison shopping and re-evaluation of borrowing an alternative loan during the application process.
Present lower cost federal options that should be exhausted prior to considering an alternative loan.
Reduce overall borrower indebtedness.

The student is required to complete the Alternative Loan Self-Certification Form and return it to the Alternative Loan Lender. The Alternative Loan Lender will not disburse any loan funds until the student’s completed form has been received.

Below are instructions on how to obtain information that is required to complete the Alternative Loan Self-Certification Form.

Cost of Attendance & Estimated Financial Assistance (Section 2 of the form)

Part A: Cost of Attendance (COA)

For Traditional Undergraduate students, please refer to Undergraduate Estimated Cost of Attendance for specific amounts.
For Professionals or Graduate students, the COA is variable based on the number of units the student is registered in per term and the number of terms he or she attends CLU in an academic year. Contact the Financial Aid Office to find out more about specific COAs.

Part B: Estimated Financial Assistance (EFA) Please follow these steps to determine your EFA:

Accept or Reject Financial Aid.
Add together all accepted aid (in scholarships, grants, Federal Work Study, Federal Stafford Loans, and Parent PLUS Loan) for the academic year.
Use the total amount as your Estimated Financial Aid (EFA) amount. Your EFA should not include the current Alternative Loan that you are applying for.

Part C: Difference between COA and EFA

The difference between the Cost of Attendance and Estimated Financial Assistance is the maximum amount of Alternative Loan that a student is eligible to apply for.

The student should contact the private loan lender to submit the self-certification form.

All self-certification forms must be sent to the private loan lender. If a private loan lender requires the self-certification form, the loan cannot be processed until the lender has received that completed self-certification form in addition to other disclosures that require the student’s signature. Cal Lutheran recommends that all students follow up with their private loan lender to be sure that they have completed all necessary steps.

STEP 3 - Submit a Cal Lutheran Private Loan Request Form

For questions contact the Financial Aid Office at finaid@CalLutheran.edu.