Purpose:

To outline the procedures for the disbursement, usage of, and repayment of alternative loans.

Revision Responsibility: Director of Financial Aid

Responsible Executive Office: President

Created in formal policies: January 28, 2019 for a March 15, 2019 effective date.

Procedure:

All loan borrowers at Platt College are encouraged to complete the Free Application for Federal Student Aid (FAFSA).  Although a student may be approved by a lender to borrow an alternative loan, Platt College will not certify or disburse any loan funds until the student completes alternative loan counseling with the financial aid office. Alternative loans are credit-based loans borrowed by the student and require the student to have a satisfactory credit history or a creditworthy co-borrower. 

Disbursement

Once you have been approved for the private educational loan of your choice, the selected lender will send Platt College a certification request. This information is submitted online, the application is approved, and funds will be disbursed to the Platt College student’s account. The annual maximum amount that a private educational loan can be certified for is the student’s cost of attendance minus all financial aid received. Some private educational loan lenders may have annual or aggregate loan limits as well.

Platt College does not endorse any lenders and cannot recommend specific lenders.

Awarded alternative loans will first be applied to any outstanding College balance. 

Alternative loans are received via direct deposit to the College.  The alternative loan will first be applied to any outstanding balance(s) owed to the College.  Once balance(s) have been paid, if any loan amount remains, then the student will receive via physical check and may be picked up through the financial services office at Platt College in accordance with the determined dates on the calendar.   

Repayment

Repayment of student private educational loans begins six months after you graduate or if the student falls below half-time (6 credits) enrollment at Platt College. Interest accrual begins at disbursement and may be paid as it accrues or it may be capitalized with the principal.

Repayment of parent private educational loans begins immediately after the full disbursement of the loan. Some lenders offer deferment options.