Alternative/Private Loans

We encourage all students to apply for all aid available, and to use their maximum Federal Direct Loan eligibility, prior to seeking any alternative/private loan, as there are many benefits associated with federal loan programs generally not available through private loans. 

There are a variety of banks and private lenders who offer alternative loans for financing education costs for both graduate and undergraduate students and their families.  Tufts has a formal process to review the loan offerings of most of the major lenders. Based on this review, we have chosen the lenders below who offer competitive rates and borrower benefits as well as superior customer service. Be assured that Tufts receives no benefits, financial or other, from these lenders for being chosen to be on our preferred lender list.

You are under no obligation to borrow from one of these lenders. If you would like to borrow from a lender who is not on this list, you can simply select the lender of your choice and apply directly with that lender. The lender will be responsible for getting your loan information to us.

You may borrow up to the cost of education minus any aid received.

Lenders offer private loan programs with different rates, fees, repayment terms and approval requirements. We suggest that you carefully review each program to compare the terms and conditions before deciding which alternative loan may be appropriate for your needs. The lenders listed below are those most utilized at Tufts. Links are provided to the various lender websites. The application process is completed directly through the lender websites linked below. 

When considering alternative loans, borrowers should also review the PLUS loan option.

NOTE (1) Prime & LIBOR definition and rates
Interest and fees subject to change.  Contact lender for specifics.  Updated:  08/27/09

NOTE (2) All interest charges and fees detailed above are charged to the borrower and will either be deducted from the amount borrowed, or added to the amount borrowed, depending on lender procedures.  Contact your lender for the specific details of your chosen loan.

Below is a list of the average amount borrowed by Tufts students last year through each of the above lenders:

CHASE      $17,393
CITIBANK  $14,252
MEFA          $14,724
SALLIE       $16,232
WELLS       $  9,030 
 

Fair Lending Practices - Code of Conduct

Tufts University has always been committed to the highest standards of professional conduct and ethical behavior.  We recognize that ensuring the integrity of the student financial aid process is critical to providing fair and affordable access to higher education.  With the Reauthorization of the Higher Education Act of 1965, Congress has required that all colleges post a Code of Conduct relating to financial aid, private lending and student choice.  Accordingly, the staff in Student Financial Services herein confirms that we adhere to the following sound practices.

I.  University employees do not receive any personal benefits from Lending Institutions
No member of the Student Financial Services staff will accept anything of more than nominal value on his or her behalf or on behalf of another person or entity from any Lending Institution.  For example, cash, stocks, gifts, entertainment, expense-paid trips, etc. will never be accepted from a Lending Institution. Likewise, an individual will never accept payment or reimbursement from a Lending Institution for lodging, meals or travel to conferences or training seminars. 

II.  The University does not provide any advantage to a Lending Institution
The staff in Student Financial Services does not accept anything of value from any Lending Institution in exchange for any advantage or consideration provided to the Lending Institution related to its student loan activities, including but not limited to revenue-sharing, printing costs or below-cost computer hardware or software.  Likewise, the University does not allow any Lending Institution to staff the Student Financial Services office or Student Services calling center at any time.

III.  The University makes appropriate use of any Preferred Lender Lists
The selection of Lending Institutions for inclusion on the private/alternative loans Preferred Lender List is based solely on the best interests of University students and their parents without regard to the financial interests of the University. We abide by the following:

1. Students and their parents are free to select the Lending Institution of their choice for private/alternative loans and will suffer no penalty imposed by the University from using a Lending Institution that is not a “Preferred Lender.”
2. Students and their parents are not required to use any of the University private/alternative loan “Preferred Lenders” and may borrow through any lender or guarantor they choose.
3. The University does not assign a borrower’s loan to a particular lender and will certify all loans based on a borrower’s selection of a lender.