Private Alternative Loans

Private loans are credit-based consumer loans that can help bridge the gap between your total Cost of Attendance and your federal financial aid. Unlike federal loans, these are offered by private banks or credit unions.

Eligibility

Approval is based on the creditworthiness of the borrower and/or co-signer. Lenders typically evaluate your debt-to-income ratio and credit history to determine eligibility and interest rates.

Co-signers

Most students, particularly undergraduates, will require a credit-worthy co-signer to qualify for the most competitive rates.

Terms & Limits

Interest rates, fees, and minimum loan amounts vary by lender. While many lenders allow you to defer principal and interest payments while enrolled at least half-time, interest will continue to accrue during this period.

The 2026 Federal Landscape

Under the OB3 Act, federal Graduate PLUS loans are being phased out and Parent PLUS loans are now capped. Because of these new federal limits, we strongly encourage you to maximize your Federal Direct Stafford Loan eligibility first, as federal loans offer unique death/disability discharges and the new Repayment Assistance Plan (RAP) that private lenders do not provide.

Using ELM Select

Bay Path University provides a neutral list of private lenders for your consideration via ELM Select. This platform is designed to help you make an informed financial decision by providing side-by-side comparisons that evaluate loan programs, interest rates (fixed vs. variable), and repayment terms simultaneously.

• Direct Application Access: Move seamlessly from the comparison tool to the lender’s secure application site.
• Financial Literacy Tools: Access loan payment calculators to estimate your future monthly obligations before you borrow.
• Historical Data: View information on rates and fees from lenders who have a proven track record of working with Bay Path students.