Alternative Loans
Alternative loan programs are designed to bridge the funding gap when savings, grants, federal loans, and other resources are not enough or simply not available.  Below are the three YSU preferred lenders for alternative loans.  To minimize processing time it is encouraged that borrowers choose one of the following lenders.  However, YSU will process and expedite the loan certification process for any lender selected by a student borrower. (Terms and Conditions below apply to loans disbursed for the 2008-2009 aid year)
 

Preferred Lenders


Key Bank

 




Chase

 



Sallie Mae
 

 

Interest Rate:

New! Now featuring interest rates that reward good credit, with no loan fees.  Rates as low as 3-Month LIBOR + 2.49%, but may be up to 3-Month LIBOR + 6.99%.

The use of a cosigner can help student borrowers qualify for a better interest rate.

Rates are adjusted quarterly.  For current product rates, APRs, terms and conditions, please visit key.com/borrowsmart.
 

Rates as low as Prime minus 1.00% (rate may include a reduction for a qualified cosigner)

0.25% interest rate reduction for enrolling to make automatically debited payments

Borrowers may qualify for a lower interest rate when approved with a qualified cosigner

Variable rate, adjusted quarterly. For importation terms and information, please visit www.ChaseSelectLoans.com or call toll-free 1-866-306-0868.
 

Rates as low as Libor + 2.5%.

.50 percentage point interest rate reduction when payments made via ACH. (on loans first disbursed 6/1/07 through 5/31/09.)

Cosigners can help student borrowers qualify for a better interest rate.

Variable rate, adjusted monthly 
 
Repayment:

6 month grace period.

$50 minimum payment

10 year repayment for loans up to $15,000
15 years repayment for loans up to $60,000
20 years repayment for loans over $60,000
No prepayment penalty

Deferred Repayment: No payments are required while in school at least half-time.

Standard or level payments—based on principal and interest.

Graduated Repayment—Pay interest only for up to the first 2 years of repayment.  Then pay level payments of principal and interest for the remainder of the repayment term.

Forbearance options available to postpone repayment during times of hardship.
 

6-month grace period

$25 minimum monthly payment

20-year term for loan amounts up to $30,000, and up to 25-year term for loan amounts of $30,000 or more

No prepayment penalty

Repayment Options
Immediate repayment
Interest-only payments while in school
Deferred interest and principal payments until 6 months after graduation or separation from school

Forbearance
Borrowers may be eligible for 12 months of forbearance time (given in 6-month increments) once they have made at least 12 consecutive on-time payments on the account.

Forbearances can also be granted for natural disasters, terrorist activity, or through the Soldiers and Sailors Act.

An Administrative forbearance may be available at the lender’s discretion and documentation will likely be required.
 

6 month grace period.

$50 minimum monthly payment
Standard repayment term of 15 years.

Extended repayment available if needed for borrowers with higher aggregate loan balances.
No prepayment penalty

Standard or level payments:
Principal and interest

Select Step Account:
Up to four years of interest-only payments, followed by standard payments.

Forbearance options available to postpone repayment if borrower returns to school or experiences temporary financial difficulty.
Loan Fees:

Zero Fees
 

Zero fees

Zero fees
 
Loan Limits:

Minimum $500 a year

Maximum YSU's yearly Cost of Attendance - minus other financial aid

Lifetime maximum $125,000
 

Minimum $500 a year

Annual maximum – YSU’s COA minus other financial aid

Lifetime maximum - $120,000 (undergraduates); $180,000 (graduate students)
 

Minimum $1000 a year

Maximum YSU's yearly Cost of Attendance - minus other financial aid

Lifetime maximum:
Cost of Attendance minus aid
 
Eligible Borrowers:

Degree seeking undergraduate or graduate students attending at least half-time.

Both U.S. Citizens and Permanent Residents are eligible to apply.  Either the applicant or the co-applicant must be a U.S. Citizen.

Borrower and cosigner (if applicable) must meet minimum credit criteria.

An applicant with a limited credit history or no credit history may still be eligible by applying with a creditworthy cosigner.
 

Undergraduate and graduate students must be enrolled in a degree or certificate program

Students can be enrolled full time, half time, or less than half time

Students or cosigner must be a U.S. citizen or permanent resident

A cosigner is not required, but may improve the chances for approval for applicants who do not otherwise meet loan underwriting requirements

No income requirements
 

Students must be enrolled at least halftime at a 4/5 year college or university, and be pursuing an undergraduate or graduate degree.  Students attending less than half-time and pursuing a degree are eligible for the Signature Loan at Youngstown State University.

No income requirement for student borrowers so you can focus on your studies.

Cosigners are required for international students, and students with no credit or an insufficient credit history.  They can be removed from loan obligation after 24 on-time payments of principal and interest are made (Student borrower will need to meet credit requirements).

Cosigners must be U.S. Citizens or permanent residents, and meet the minimum credit criteria.

Cosigners may be required to provide proof of income for certain credit situations.
 
Lender Specific Advantages:

BorrowSmartSM—
If you need to borrow money for school, BorrowSmart.  Choosing the right way to pay your tuition is just as important as choosing the right school.  At KeyBank we encourage families to borrow smart.  That means looking at all your options before you borrow, and if you do, deciding on the best choice for you and your budget.

The first step to borrowing smart is getting all the facts and looking into options that will not leave you with unnecessary debt—so explore grants and scholarships.  If you need additional funding, federal loans provide lower interest costs and private loans bridge the gap between the cost of education and traditional sources of financial aid.

We have dedicated representatives available to answer questions, guide you through the BorrowSmart process and help you select just the right option for you.

Automatic combined repayment of Key Stafford Loans and Key Alternative Loans into one billing statement.

Cosigner release available.

Master Loan Note feature means completing just one promissory note which will cover ensuing years of study.  When it is time to pay education expenses for future academic years, renewal can be done online.

Call Key at 1-800-KEY-LEND or visit key.com/borrowsmart to learn how Key can help you BorrrowSmart.
 

0.25% interest rate reduction for enrolling to make automatically debited payments

Can be used to cover previous school balances

Online pre-approval and application, including e-signature (if applicable)

No income requirements

Loans are originated and serviced internally by Chase

Choice of repayment options

Cosigner release option - the borrower must make 36 consecutive monthly ontime payments of principal and interest at any time after repayment begins

All Chase-serviced loans, including private loans, are combined into a single bill

Loans are not sold to a third-party servicer
 

Upromise Loan Link to help pay down student loan balance

To find out more about Sallie Mae Advantage and to enroll in Upromise, visit SallieMae.com/upromise.
 
How to Apply:
  1. Complete Key's Online application or apply over the phone.
  2. Complete a Master Promissory Note with Key (online option available).
  3. Key performs credit check and if approved electronically sends a request to YSU for a school cert.
  4. YSU certifies the loan, verifying enrollment and student's total eligibility (Cost of Attendance - Other Aid).
  5. Key receives the school certification electronically from YSU and issues an electronic disbursement.
  6. YSU receives the disbursement and applies the funds to the student's account.  If proceeds remain, YSU issues and mails a refund check to the student's billing address.
     

 

 
  1. Complete the Chase Select loan application either by phone (1.866.306.0868) or online.
  2. Complete a Master Promissory Note with Chase.
  3. Chase performs credit check and if approved electronically sends a request to YSU for a school cert.
  4. YSU certifies the loan, verifying enrollment and student's total eligibility (Cost of Attendance - Other Aid).
  5. Chase receives the school certification electronically from YSU and issues an electronic disbursement.
  6. YSU receives the disbursement and applies the funds to the student's account.  If proceeds remain, YSU issues and mails a refund check to the student's billing address.
     

 

 
  1. Complete Signature online application.
  2. Complete the promissory note with the lender of your choice (Student Loan Funding, Fifth Third or Nellie Mae).  You can easily make your selection when completing the online Signature application.
  3. Lender performs credit check and if approved electronically sends a request to YSU for a school cert.
  4. YSU certifies the loan, verifying enrollment and student's total eligibility (Cost of Attendance - Other Aid).
  5. Lender receives the school certification electronically from YSU and issues an electronic disbursement.
  6. YSU receives the disbursement and applies the funds to the student's account.  If proceeds remain, YSU issues and mails a refund check to the student's billing address.
     

 



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Youngstown State University, One University Plaza, Youngstown, Ohio, 44555
phone - (330) 941-3505 | email:  ysufinaid@ysu.edu