Alternative Education Loans

• Understanding the application process: Application processes and requirements will vary by lender. Students are encouraged to review the full process prior to submitting an application.
• Processing time: Students should allow an average of 4-6 weeks for the loan application, processing time, and disbursement.
• Lenders may require students to meet some or all of the following criteria:
  • Enrollment as a degree-seeking student
  • Half-time enrollment each semester (at least 6 hours for undergraduate students and 5 hours for graduate students)
  • Satisfactory Academic Progress (SAP)
• Prior Term Balance Coverage:
  • If a loan is for a prior term balance, it cannot exceed the amount owed in the prior term.
  • Lenders providing loans for previous term balances may have a limit on how old the balance can be, typically not exceeding 12 months. Students should verify the lender policy prior to applying.
• Cost of Attendance: If a loan is approved for a specific term or academic year and exceeds the student’s cost of attendance, this amount may be reduced by UAB. Per federal regulations, students cannot exceed their estimated cost of attendance. Students may view an estimated cost of attendance on the “My Financial Aid” section in BlazerNET or by contacting the This email address is being protected from spambots. You need JavaScript enabled to view it..

The alternative loan application process may vary by lender. Students should review each lender’s website to ensure they understand the application requirements and terms of each loan.

• Students must submit a new application for each academic year they plan to borrow an alternative loan.
• Complete the Private Education Loan Applicant Self-Certification Form, which can be obtained through the lender.
• Students may be required to provide information to lender regarding current aid and total cost of attendance at UAB. Students can obtain this information on the “My Financial Aid” section of BlazerNET or by contacting the This email address is being protected from spambots. You need JavaScript enabled to view it..
• Identify the loan amount and academic term(s) for which the loan will be processed.
• Once approved, the loan certification request is sent by the lender to UAB to verify the student’s enrollment status. After the certification is submitted, loans are subject to a “right to cancel” period before funds can be released by the lender; the average period is 5-10 business days.
• Loan disbursement: once UAB receives the student’s loan funds from the lender, the funds will be applied to any outstanding charges on the student’s account balance. Any remaining funds will be refunded to the student by either direct deposit or mailed check. Students can sign up for direct deposit through BlazerNET.

• It is recommended that students explore all of their options to find the best fit before submitting a loan application. Borrowers can find loans through their personal banks, credit unions, or other lending agencies.
• UAB provides a historical listing of lenders through ELM Select allowing students to search for a lender. ELM Select provides a historical listing of loan providers who have served UAB students over the past 3 to 5 years. Students are not limited to the alternative lenders listed on ELM Select.

Find a lender on ELM Select

Are students eligible for an alternative loan if they are already receiving scholarships or federal financial aid?
Yes. Students can receive an alternative loan in addition to scholarships, federal financial aid, and/or other third party funds. The amount of aid a student receives cannot exceed their estimated Cost of Attendance which can be viewed on the “My Financial Aid” section of BlazerNET.

Can an alternative loan cover a previous term balance?
Yes. Some lenders offer options for loans to cover a past-due balance. Lenders may have a limit on how old the balance can be, typically not exceeding 12 months.Students can search for lenders offering past-due balance coverage on ELM Select. 

How long is the processing time for an alternative loan? 
Processing times may vary by lender. Students should allow an average of 4-6 weeks for the loan application, processing time, and disbursement.

Can students submit one alternative loan application for their entire academic career? 
No. To be eligible, students must submit a new alternative loan application each academic year.

Are students required to complete a Free Application for Federal Student Aid (FAFSA) to be eligible for an alternative loan?
No. Students are encouraged to complete the FAFSA each academic year they plan to be enrolled, but the FAFSA is not required to be eligible for an alternative loan.

Does UAB recommend or prefer any specific lenders?
UAB does not recommend or suggest any lender over another, but we offer a historical lender list to help students with the search process. 

Can students apply for an alternative loan if they do not have established credit or a low credit rating?
Yes. Students can apply for an alternative loan if they do not have established credit or have a low credit rating. These loans typically require the student to have a co-signer. Students should verify loan and credit requirements with the lender prior to applying.

Can a parent borrow an alternative loan on a student’s behalf?
Yes, some lenders provide parent loans that are certified to the student’s account. The parent is listed as the borrower and is responsible for repayment of the loan.