CFI Alternative Loans

NC Student Assist Loan and NC Parent Assist Loan

CFI offers alternative loans to students and parents with a North Carolina connection. The NC Student Assist Loan is available to undergraduate and graduate students attending an eligible non-profit Title IV institution. The NC Parent Assist Loan is available to parents of undergraduate students attending an eligible non-profit Title IV institution. These loans can bridge the difference in the cost of attendance and other financial aid.


Private Loans for Education

What's the difference in a federal loan and a private loan?

  • Federal student or parent loans are government-backed (or guaranteed) loans to help pay for college. They are low-cost, fixed-rate loans and have discharge and loan forgiveness options. Some of them are subsidized, which means the interest is paid for you while in college.
  • Alternative loans are consumer loans made to individuals to help pay for college. Their interest rates are set by the lender. These loans are not guaranteed or subsidized by the federal government. Alternative loans have different repayment options than federal education loans may offer.

How are federal loans and alternative loans alike?

  • Both are loans that must be repaid.
  • Both are used to meet educational expenses (tuition, fees, room, board, books and supplies, transportation, personal and miscellaneous expenses related to college).
  • Successful repayment of these loans builds your credit history and improves your credit record.

How are federal loans and alternative loans different?

  • The interest rate for federal loans are fixed. The interest rate for alternative loans may be variable.
  • Repayment options may vary.
  • The annual and aggregate amounts you can borrow may be different.
You should consider borrowing an alternative loan to fill the gap between your cost of education and other financial aid.
Discuss your financial aid options with your campus financial aid officer. You can research alternative loans on-line to find out about:
  • Current interest rates
  • Co-signer requirements
  • Repayment terms

Remember, borrow responsibly.


Tools and Resources

Private Student Loans: A Guide to Responsible Borrowing - Form G 647