In addition to federal, state and Mount Ida aid, you also may want to explore a student loan from a private bank, credit union or other national lender to meet your educational expenses. Our Financial Aid team encourages you to look for loans that are school certified, have low interest rates, zero fees, and come with a variety of repayment options—find the best loan product that meet you and your family’s individual circumstances.
It is important to note that compared to federal and state loans, interest rates on private loans are typically higher; and interest accrues while you are attending college. Also, repayment of your private student loan(s) typically begins six months upon graduation. Lastly, the private loan is in your name and often requires a co-signer for approval.
Our Financial Aid team will work with the private lender of your choosing and process the private loan without penalty by Mount Ida. When putting your financial plan together, we do ask that you keep private or alternative borrowing to the necessary minimum. Private loan funds do not reach Mount Ida until 30 days after the start of the semester.
We urge you to read these important notices on Private Education Loan Self-Certification form information and Regulations Z, Truth in Lending prior to your private loan search. Please contact Financial Aid with any questions regarding private loans.
Private Education Loan Self-Certification Form Information
Effective February 14, 2010, lenders of private education loans are required to collect a completed and signed Self-Certification Form (PDF) from the student prior to disbursing the loan proceeds to the College. This requirement applies to any private education loan(s) that are not at least partially disbursed prior to the effective date. Private education loans include all Alternative Loans, as well as the Massachusetts No Interest Loan program. Individual lending institutions are implementing their own procedures to comply with this new regulation, so you should contact your lender directly if you have specific questions about the process for submitting this form.
If you do not submit a completed and signed Self-Certification Form to your lender, your loan funds will not be disbursed to the College.
Regulation Z – Truth in Lending (TILA)
The Higher Education Opportunity Act (HEOA) enacted August 2008 amended the Truth-in-Lending Act (TILA) establishing private education loan disclosure requirements about loan terms on or with the loan application and lenders must also disclose information about lower cost alternatives like federal student loans. Additionally, once the loan is approved and finalized for disbursement, additional disclosures must be provided. These regulations were passed to ensure that borrowers of private education loans have the necessary information to make informed choices about financing products to fund educational costs. These regulations apply to all private education loans but not to loans under the Federal IV loan programs (Stafford, Perkins and PLUS). We are providing a model Private Lender Agreement (PLA) Form as an example of what your lending institution is required to share with you upon borrowing an educational loan.
Click here to view the Model PLA Agreement Form (PDF)
Click here to view the Method and Criteria for Selecting Alternative Loan List
Click here to view the Alternative Loan Annual Application and Solicitation Disclosure Notices
You will find, if you have borrowed a private educational loan previously, the process of applying for and receiving an education loan will take a longer period of time. Therefore, we encourage you to start early in the planning of your educational financing so you do not experience delays in receiving your education loan proceeds. Under these amendments, you, the borrower will have additional responsibilities as a loan borrower including acknowledgement of the disclosure statements and completion of the Self-Certification Form. We encourage you to check with your lender to ensure you complete all necessary paperwork. Also, we invite you to contact the Office of Financial Aid if you have any questions about these requirements.