Alternative or Private Loans

Many private banks and lenders offer loans for financing educational costs. These are credit-based loans and students must complete the lender's application process. Interest and payment terms vary. Students may apply for as much as UT's cost of attendance less other aid received. See Excessive Awards for more information. 

We recommend families exhaust all aid options before taking an alternative loan, including federal student loans (federal loans are generally less expensive). A FAFSA is not required for alternative loans. Students who wish to take an alternative loan and do not complete the FAFSA must complete private loan counseling with their financial aid counselor prior to receiving the alternative loan funds.

Lenders may require a co-borrower, making payments while in school, or have other stipulations. Even if not required by the lender, students may choose to apply with a cosigner because it could reduce the interest rate. 

UT will process a loan from any lender. The Financial Aid Office regularly evaluates and maintains a preferred lender list of those we believe provide the best loan products and services to students. See UT's preferred lender list for more information: 

• Graduate Students
• Undergraduate Students