Alternative Loan
If you have expenses that are not paid for by the Federal loans or grants you have received, you may want to investigate private loans as an alternative. Most alternative loans require a good credit rating and/or a creditworthy co-signer. Terms, fees, and borrowing limits of alternative loans may differ from lender to lender.
Federal and State Aid First!
The University of Houston-Clear Lake recommends that all students complete the process for federal and state aid before considering alternative (private) loans. You may qualify for federal or state grants or loans. The terms and conditions of federal and state aid may be more favorable than the terms and conditions of alternative loans. If you decide to forgo the federal and state application process, you will be required to meet with a financial aid counselor for special loan counseling.
If you served on Active Duty, you might be eligible for education benefits offered by the Department of Veterans Affairs. For example, the Post-9/11 GI Bill® provides financial support for educational and housing expenses to individuals with at least 90 days of aggregate service after September 10, 2001, or individuals discharged with a service-connected disability after 30 days. You must have received an honorable discharge to be eligible for the Post-9/11 GI Bill®.
If you are currently serving in the military, you may be eligible for funding offered through the Department of Defense Tuition Assistance program. Check your eligibility status and the amount for which you qualify with your Service prior to enrolling.
If you are the spouse or child of a service member who is serving on active duty Title 10 orders in the pay grades of E1-E5, O1-O2, or W1-W2, you may be eligible for financial assistance from the Department of Defense for education, training, and/or the occupational license and credentials necessary for a portable career.
If you are the spouse or child of a service member, you may be eligible for transfer of the service member’s Post-9/11 GI Bill® benefits to you.
Alternative loans
- Are not federally guaranteed
- Often require certification by the Office of Student Financial Aid
- We will not lend more than the annual cost of attendance minus the total you were awarded in other financial aid.
- You will be asked to complete a Private/Alternative Loan Self-Certification Form from your lender. You can find information in your E-services account to complete this form. If you have issues completing this form, please contact the Office of Financial Aid.
Apply to your lender online
Several lenders have expressed an interest in lending to UHCL students. We have partnered with ELM Resources to provide a lender comparison and application tool. Please visit our ELM Select website to compare and apply to these lenders. The ELM Select Web site also contains required information about how the lenders they list are selected.
Please note: You are free to select any lender you wish. The lender does not have to be on the ELM Select website. UHCL will certify an alternative loan to any eligible student regardless of lender.
Student loan Code of Conduct
In accordance with the Higher Education Opportunity Act, the University of Houston-Clear Lake's Office of Student Financial Aid maintains and enforces a Student Loan Code of Conduct.
The office also adheres to the National Association of Student Financial Aid Administrators' Statement of Ethical Principles and Code of Conduct for Institutional Financial Aid Professionals.
The federal government requires the University of Houston-Clear Lake to disclose certain characteristics about the selection of the lenders below. The following FAQ is designed to maintain compliance with the disclosure regulations. If you have any questions regarding alternative loans or the information listed below, please feel free to contact the Office of Student Financial Aid at 281-283-2480 or via email at uhcl_fao@uhcl.edu.
We reviewed the list of lenders on our 2023-24 comparison chart and noted a few that do not have their own lending product; they process loans through another lender on our list. Such lenders will not be included on the chart for the 2024-25 year to ensure lenders are given equal representation.
On April 3, 2024, a 2024-25 Request for Information (RFI) questionnaire was emailed to each of the remaining lenders on the 2023-24 list. Responses were requested by May 10, 2024. We did not invite new lenders to submit a 2024-25 RFI as the current lenders provide an sufficient range of lending products to meet the needs of our students.
We reviewed the RFIs received by May 10, 2024. Each loan lender included on the 2024-25 chart met the following criteria:
- Electronic processing of loan certifications and disbursements to reduce the time it takes for the borrower to receive funding.
- No origination or other fees deducted from the loan proceeds.
- Lender processes and services their own loans.
- Offers various repayment plan options and/or interest rate discount opportunities.
All information was received by May 10, 2024. The chart will be used from June 2024 through June 2025, and a new chart will be effective July 2025. Please note that the current chart is subject to change at any time.
No two lenders on the comparison chart are affiliated with one another.
If you are eligible for federal financial aid, you will need to visit with a financial aid counselor to consider this option. Generally, we will not approve an alternative loan before awarding all available federal aid first. In general, federal aid has lower costs and is more favorable for students to utilize than alternative loans.
It depends. The amount you may borrow is the difference in the amount of aid already awarded subtracted from your Cost of Attendance. For each individual student, this is a different amount. For example, if your Cost of Attendance is $12,000 and you received $7,000 in financial aid, you may be able to borrow up to $5,000 in an alternative loan. However, please note, a lender has to approve you for this amount.
Yes. You can borrow from any lender you wish. You do not have to borrow from a lender on the comparison chart.
Note: University of Houston-Clear Lake cannot be held liable in the event the borrower and/ or co-borrower is dissatisfied with the rates, terms, or service provided by any lender, nor is the school responsible for any damages incurred by the borrower and/or co-borrower as a result of the student's choice of lender. The information listed above is current as of June 2024.
GI Bill® is a registered trademark of the U.S. Department of Veteran Affairs (VA). More information about education benefits offered by VA is available at the official U.S. government website at http://www.benefits.va.gov/gibill.