Other Loans

Private/Alternative Parent Loans

Parents who wish to finance all or a portion of undergraduate educational costs have several options available to them. The best option will vary by family situation. Families with available home equity may want to consider a home equity loan before these other alternatives.

Private Loans vs. Federal Loans

Private education loans may have significant disadvantages when compared with federal parent educational loans. We encourage students to first borrow any federal loans for which they are eligible.

For the 2014-15 academic year, Stanford has been working with SoFi to establish a private Parent Loan alternative to the federal Parent PLUS loan. Please refer to SoFi's website for details of the program. Stanford University has no financial involvement with the program.

A Comparison of Federal Parent PLUS and SoFi Parent Loan for Stanford
Federal Parent PLUS SoFi Parent Loan
Co-Signer Required? No; although possible way to resolve credit issues No
Credit Check Required? Yes, although only testing for "absence of negative credit" Yes; credit worthiness determines eligibility and interest rate
Deferment Options Deferment while the student is in school and during a 6 month grace period after graduation is possible.  Interest does continue to accrue. None
Repayment Period 10 years; no prepayment penalty Options for 5 or 10 years; no prepayment penalty
Interest Rate 7.21% fixed for new loans after July 1, 2015 Options for fixed or variable, range from 3.16% to 7.38%
Loan Fees 4.288% origination fee None

Self-Certification Form

Parents who choose the SoFi Parent Loan will need to complete the Private Education Loan Applicant Self-Certification form.

In Section 2 of the self-certification form, you will be asked to provide the following three dollar amounts:

A. Student's cost of attendance for the period of enrollment covered by the loan
B. Estimated financial assistance
C. Difference between amounts A and B

The student can find the amounts for items A and B on his or her most recent financial aid award letter (available in Axess). For item A, use the figure listed for Total Expenses. For item B, add the Total Grants and Scholarships plus any student loans and federal work-study eligibility that you’ve accepted.

If you have trouble locating these figures, you may contact the Financial Aid Office for assistance.

Final Disclosure and Right-to-Cancel Period

Under the federal Truth in Lending Act (TILA), your lender must provide you with a finalized disclosure statement after you have signed your promissory note. The final disclosure statement confirms the terms and conditions of your loan.

At the time that this final disclosure is delivered, your "right-to-cancel" period begins. During this period of six business days, you may cancel the loan by contacting the lender. The lender cannot release the first disbursement of your loan funds until the end of the right-to-cancel period.

Updated on August 7, 2014 12:55 PM