What is an Alternative Loan?
Alternative loans are education loans secured under a master promissory note from a lending institution of your choice. Alternative loans will normally require school certification. These loans are not secured loans and will accumulate interest at a rate determined by the lending institution (normally based on you or your co-signer’s credit score and credit history).
Alternative loans are usually secured to supplement your federal financial aid and allow you to borrow up to the maximum amount of your cost of attendance at UVU.
What are the requirements to secure an Alternative Loan?
In order for Utah Valley University (UVU) to certify your alternative loan application, you must be all of the following:
- Admitted to UVU
- Registered in at least 6 credits
- A degree-seeking student
- Making satisfactory academic progress as defined below
Alternative Loan Applications
Completion of the lender’s application is by far the most important phase of applying for an alternative loan. The information recorded on the application must be accurate and complete. Erroneous information will result in denial of the applicant’s loan request. Once it has been completely filled out and dated, it must be submitted to the lender, not to UVU.
Loan Certification and Disbursement
Once a student is approved for a loan by the lender, the lender will request that UVU certify the loan. When UVU certifies the loan, we are confirming for the lender that the loan applicant meets all eligibility requirements.
Alternative loans will not be certified by UVU until you have completed all the following:
- You have completed the Alternative Loan Counseling quiz (see below) and it is submitted to the Financial Aid office
- The Aviation Information form is completed and faxed to 1-877-336-8872 or e-mailed to aviationfinaid@uvu.edu
- You are enrolled in a minimum of 6 credits for the semester in which you expect the first alternative loan disbursement
Alternative Loans cannot be disbursed until all the items listed in the checklist at the bottom of this counseling are completed.
How much should I apply for?
The maximum amount UVU can certify per year in alternative loans is your cost of attendance (COA) minus all other aid you are receiving (e.g. grants, reimbursements, or alternative loans you have received based on UVU enrollment). Your COA is federally mandated and includes some living costs added to your projected costs of pursuing a degree at UVU. Your COA is re-calculated every academic year. Loan requests for more than the COA will be reduced or denied certification by UVU. You can only receive the amount that you are eligible for, regardless of what you request.
When will I get my disbursements?
Loans are usually disbursed at the beginning of each semester (a maximum of 3 consecutive semesters) or as soon after certification as possible if you are otherwise qualified. Alternative loan funds will be disbursed from your lender to UVU in the form of a check. This check cannot be released to you until your tuition has been paid in full .
If you are receiving federal financial aid (which we strongly encourage you apply for), make sure all requirements have been completed so your federal funds can disburse to pay your tuition by the due date. If you are not receiving federal funds, or your federal funds are not enough to pay the entire amount of your tuition, please make payment through your UV Link account.
Note : If you are a local student flying at the UVU flight school, your alternative loan disbursement will be deposited into your local flight account. If you withdraw from flight training or transfer to another flight school, any remaining funds in your flight account must be returned to your lender.
Please contact Aviation Financial Aid (aviationfinaid@uvu.edu) if you have questions regarding your disbursement.
What is Satisfactory Academic Progress?
To receive alternative loan funds, you must be an active student in a degree-seeking program who is making satisfactory academic progress (SAP). UVU institutional policy pertaining to alternative loans defines SAP as:
- Completion of 75% of your credits each semester.
- Maintaining a minimum aggregate Grade Point Average (GPA) of 2.0 each semester.
- Making progress towards a degree or certificate.
- Attempting less than 150% of the number of credits required for their program.
If a student fails to maintain SAP, future loan disbursements will be delayed and possibly cancelled. Please see the Financial Aid Handbook for further details. If your GPA falls below 2.0, your course completion rate is less than 75%, or you have attempted more than 150% of the number of credits required for your program, you will need to go through the appeals process. Further information about the appeal process can be obtained by contacting the Aviation Financial Aid office at 1-877-336-8872 or by e-mailing questions to aviationfinaid@uvu.edu. If an appeal is approved, you may be able to receive your remaining federal and alternative loan funds.
Safeguarding Your Investment
UVU Aviation has been instrumental in providing students all over the world with an opportunity to receive their college degree, an investment that should be highly guarded. Alternative student loans have made this possible and should be equally valued. To protect your investment, every student applying for assistance needs to be aware of the potential hazards related to borrowing large sums of money to obtain a degree.
BE CAUTIOUS OF WHERE YOU INVEST YOUR FUTURE!
Flight School Costs
Alternative loans are specifically designated to help cover your education related costs. You must understand that UVU does not have any affiliation with any flight school outside UVU and so it is of paramount importance that you do the necessary research in order to choose your flight school carefully.
Being Responsible
Students Beware! The money you borrow MUST be repaid! Do not sign any forms or contracts without knowing what you are signing and what impact it will have on your credit. Ensure you get copies of all forms you sign. Keep a hard copy of all Master Promissory Notes and keep track of all your loan debt. Know how much you are in debt from year to year so that you do not overextend your credit. Be familiar with the repayment schedule provided by your lender. Know the total amount of your loans and the monthly payment schedule required to pay off the loan. If at any time you are not sure of any of the above, contact your lender or lenders and get the information you need.
You are responsible for managing your student financial aid and debt. We encourage students to budget wisely. Know what kind of expenses you will incur on a monthly basis. Pay off as much debt as you can when funds allow. Think of how you can cut expenses and keep your cost of living down. Make choices to live within your means. Limit your credit card use. Poor credit can greatly affect future loan opportunities and major purchases such as a house or a car. Please do not allow your enthusiasm for flying to overshadow your prudent use of debt or financial management.
Repayment Terms
Depending on the terms of your promissory note, you may or may not be required to start repayment of alternative loans while you are still actively enrolled in a degree-seeking program and registers in classes. If you fail to maintain active enrollment for a period of longer than six months, your loans will come out of deferment and repayment terms will be instituted. All repayment terms have been determined by the individual lending institutions providing alternative funding, not by UVU. The student agrees to these terms when signing the lender’s promissory note. All repayment inquiries pertaining to student alternative loans should be directed to the individual lenders. It is up to the student to find out when repayment on their alternative loan begins.
Alternative Loan Counseling Checklist
□ Apply for admission to UVU
□ Enroll in a minimum of 6 credits
□ Complete the Aviation Information Form and fax it to 801-863-8448
□ Maintain academic progress as defined above or submit an appeal
□ Apply for your loan with the lender of your choice. Your lender will notify UVU to certify the loan when you have been approved
□ Complete the Alternative Loan Quiz which will be electronically submitted to the Aviation Financial Aid Office