Alternative Financing

Pace 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

Private Education Loans are credit-based loans borrowed by the student. It is highly recommended that the student applies 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 the necessary information regarding your options. On either type of loan, the interest will begin to accrue at the 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.

An Alternative loan is a private loan in the student's name which, depending on the creditworthiness 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 interest payments while they are in school to avoid an increase in 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 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:

• Equifax
• Experian
• TransUnion

Additional Steps

Application Disclosure - Provided by Lender

• Does not need to be signed.
• Contains general information about the range of rates, terms, and fees.
• Some lenders will provide to cosigners.
• Provides an example of total the cost of the 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 the applicant and/or cosigner within a minimum of 30 days – lenders determine the amount of time before the loan is canceled.
• Provides the borrower/cosigner with specific information about loan rates, fees, and terms.
• Provides the total cost of the loan based on the selected repayment term.

Final Disclosure - Provided by Lender

• Does not need to be signed.
• Contains information on the right to rescind the loan before the 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 the borrower.
• Borrower must provide Cost of Attendance minus Accepted Financial Aid to determine maximum loan eligibility (this information can be found on your Pace Portal).
• Lenders set a deadline on the amount of time allowed before canceling the 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 (PDF).
• Contact the Financial Aid Office for further assistance with completing the Self-Certification Form.

Pace Law does not recommend any particular lenders. We will accept and certify a loan from any lender the student chooses. You may utilize Pace University's ELM Select page to review a historical list of lender options.

Pace offers monthly payment plans accessible through the MyPace Portal. These plans enable students or their families to pay monthly installments on their account toward tuition, fees, and housing. Many students and families find monthly installments more manageable than a single lump payment each semester. These interest-free payment plans are not loans; therefore, there are no credit checks. These plans are available for the fall and spring terms in monthly installments and there is a weekly plan option available for summer terms.

All students are eligible to take advantage of these payment plans. Please note there is a non-refundable enrollment fee each term, and students must re-enroll in a plan each semester. The link to the Payment Plans will detail payment due dates, type of payments accepted, (credit cards, web checks, ACH payments), as well as fees associated with late payments.

This program is administered through the Office of Student Assistance (OSA). For more information, please visit the billing section of the OSA website.