Since each family’s financial situation is different, we are not able to recommend one financing plan that will meet each
family’s needs. We have, however, prepared this brochure to provide you with information on how to select an alternative
loan program, and have included a list of the programs most frequently used by our students and their families.

It’s to your advantage to become well-informed before you take on the responsibilities that come with an educational loan.
You should first apply for all other forms of financial aid, including grants, scholarships, employer tuition plans, etc.
before applying for an alternative loan.

AES/PHEAA does a great job of comparing the benefits of borrowing a Stafford or PLUS loan versus an alternative loan.  To download a side-by-side comparison of interest rates, loan fees, repayment terms, and more, please visit www.aessuccess.org/find_aid_for_school/alternative_loans/index.shtml.

Get All the Facts

Educate yourself before you borrow. Before taking out your alternative loan, have a clear understanding of what type of
loan you have and its characteristics, for example:

Check Out Your Repayment Options Before Borrowing

Repayment may seem a long way off, but choosing your alternative loan carefully NOW can mean a less expensive and
more manageable loan later. Some lenders have loans that enter repayment immediately after full disbursement. Some
lenders offer programs that let you pay electronically and offer rewards, such as lower interest rates, to those who
consistently pay on time. Understanding your options will help you decide how much you can borrow.

Before You Sign Anything

Keep in mind that these are loans, not grants. When you enter repayment, you’ll be required to make regular monthly
payments. Make sure that you don’t put yourself in a situation you can’t handle.