Alternative Financing

ALTERNATIVE FINANCING OPTIONs

At Pace University we understand that some students may need to look for options other than traditional financial aid to pay their expenses. Two alternative financing options available are private education loans and the Tuition Pay payment plan.

Pace University recommends maximizing your Federal Direct Loans before seeking a private education loan.

PRIVATE EDUCATION LOANS

New Alternative Educational Loan Regulations Are Effective February 6, 2010:

Private Education Loans are credit-based loans borrowed by the student. It is highly recommended that the student apply with a cosigner to increase their chance of approval and to receive a better interest rate.

Many lenders now offer a choice between a fixed-rate loan or a variable interest rate loan. Upon applying, your lender will provide you with necessary information regarding your options. On either type of loan the interest will begin to accrue at time of disbursement.

If the student chooses to use an alternative loan, be aware that the process could take as long as 30 days before the lender can disburse the funds to the school.

Pace University does not recommend any particular lenders. We will accept and certify a loan from any lender the student chooses.

An Alternative loan is a private loan in the student's name which, depending on the credit worthiness of the applicant, may require a co-signer. Many lenders do not require students to be in a degree or certificate program to receive these loans. Many lenders will also lend to students enrolled less than half-time.

Payment and interest on Alternative loans can be deferred until six months after graduation, or as long as the student is enrolled at least half-time. INTEREST WILL ACCRUE DURING THIS DEFERMENT PERIOD AND IS ADDED TO THE PRINCIPAL. It is strongly recommended that students try to make the interest payments while they are in school to avoid an increase of the principal amount of the loan during the deferment period. Students are permitted to finance up to their Cost of Attendance minus other aid.

The student's credit score determines the interest rate and fees for Alternative loans. We advise students to obtain their credit report to verify that the information being used to determine their rate is accurate and up to date. It is always important to ensure that information reported to credit bureaus is correct.

The three major credit bureaus are:

Applications for Alternative Loans can be done on-line or through a paper process directly with the student's chosen lender. It is the student's responsibility to follow-up with the lending institution to ensure that they have received all requested documents needed to finalize the loan.

Loans must be certified by a Financial Aid Counselor at Pace University in order to complete the loan process. Funds are deposited into the student's Student Account at Pace by a specified disbursement date determined by the Financial Aid Office and the Lender.

Application Disclosure – provided by lender

  • Does not need to be signed
  • Contains general information about range of rates, terms and fees
  • Some lenders will provide to cosigners
  • Provides an example of total cost of loan
  • Contains information on Federal Student Loans


Approval Disclosure – provided by lender

  • Applicants and/or cosigners are provided this form after the loan has been credit approved
  • Must be accepted by applicant and/or cosigner within a minimum of 30 days – lenders determine the amount of time before loan is cancelled.
  • Provides the borrower/cosigner with specific information about loan rate, fees, and terms
  • Provides the total cost of loan based on selected repayment term


Final Disclosure – provided by lender

  • Does not need to be signed
  • Contains information on the right to rescind loan prior to first disbursement
  • Gives borrower a minimum of three days to cancel loan – this is known as the Rescission Period


Self-Certification Form

  • Separate from the application
  • Standard form containing demographic information, but not SSN
  • Must be signed by borrower
  • Borrower must provide Cost of Attendance minus Accepted Financial Aid to determine maximum loan eligibility (this information can be found on your award letter or portal)
  • Lenders set deadline on amount time allowed before cancelling loan
  • In most cases the form will be provided by the lender which will include a loan identification code. However, schools must make this form available to students
  • Some lenders will allow for e-signatures
  • The Private Education Loan Applicant Self-Certification Form is available here.
  • Contact your home campus Financial Aid office at 1-877-672-1830 for further assistance with completing the Self-Certification Form


These extra steps will cause significant delays in loans being certified and disbursed. We recommend applying at least 30 days before the payment due date. Most lenders will wait until all documentation is signed and returned before sending a request for certification to Pace University. Once we certify the loan, we will have to wait a minimum of 3-7 business days to receive disbursement.

Pace Student Loan Code of Conduct

Pace University is committed to student-centered loan processing. The University has participated in the Direct Loan program in which loans are provided directly from the federal government to students since the 1994-1995 school year. Pace Financial Aid staff certify and transmit all federal loans directly to the Common Origination and Disbursement Center of the Department of Education.

With regard to private/alternative (non-federal) educational loans, Pace Financial Aid staff will certify any loan of the student’s choice. We do not endorse any particular lender. Neither do we participate in any of the following practices with lenders:

  • Revenue-sharing arrangements with any lender
  • Receiving gifts from a lender, a guarantor, or a loan servicer
  • Contracting arrangement providing financial benefit from any lender or affiliate of a lender
  • Directing borrowers to particular lenders, or refusing or delaying loan certifications
  • Offers of funds for private loans
  • Call center or financial aid office staffing assistance
  • Advisory board compensation


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TUITION PAY PLANS

The Tuition Pay plan allows students to make payments over 5 months for one semester. This program is administered through the Office of Student Assistance – Student Accounts. For more information, please visit the OSA web page.


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ADDITIONAL RESOURCES

Private College 529 Plan

Pace University is a participating school of the Private College 529 Plan, the only nationally sponsored plan that's owned by participating private colleges and built to help families control the cost of tuition and avoid market risk.&The Plan allows families to prepay tuition today that their child can later use at any member college. It provides a guarantee against tuition inflation, and the flexibility to choose from some of the nation's top colleges.

When enrolled in the Private College 529 Plan, you purchase Plan tuition certificates that are guaranteed. A semester of undergraduate tuition for a participating college or university purchased today will be worth a semester of tuition at that school for up to 30 years — no matter how much tuition rises or what happens in the financial markets.

To learn more about this plan, please visit the Private College 529 Plan web site.

 


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