Financing a college education is a concern for many families. Most financial aid packages will include student loans; however, federally subsidized and unsubsidized loans may not cover the total cost of college expenses.   Once you have exhausted all forms of financial aid including federal loans, private loans (also known as alternative loans) offer another way to supplement the costs of higher education.

Alternative loans are private loans that provide students with additional funding for unmet college expenses. Students are encouraged to file the Free Application for Federal Student Aid (FAFSA) to exhaust all eligibility for federal funds before applying for alternative loans. Alternative loans are not federally guaranteed and require a good credit rating and/or credit worthy co-signer. The annual amount cannot exceed the cost of attendance minus other financial aid.
Private education loans tend to cost more than the education loans offered by the federal government, but are less expensive than credit card debt. Stafford loans offer fixed interest rates that are lower than the variable rates offered by most private student loans. Stafford loans also offer better repayment and forgiveness options. Since Stafford loans are less expensive than and offer better terms than private student loans, you should exhaust your eligibility for federal student loans before resorting to private student loans.
The interest rates and repayment terms may vary depending on the lender. If you have exhausted all federal options and feel you need to apply for a private loan, shop around and ask a lot of questions to ensure you receive the best interest rate and terms.

The Wisconsin Association of Student Financial Aid Administrators (WASFAA) offers some guidance on private loans that may be accessed by clicking on the link: Private Loan Information.

We believe that borrowing an alternative loan is a decision that should be made with careful consideration.  FASTAlt Solutions provides you with information you need to make an informed decision. 
You may access Fast Alt Solutions counseling session by clicking on the link below.