Private or Alternative Loans

Loans not from federal or institutional sources - Caution!

Private loans (sometimes referred to as alternative loans) may be available based on good credit or with a credit worthy cosigner.  The Office of Financial Aid urges extreme caution with this type of loan.  Be sure you exhaust all federal and institutional sources first.  Carefully examine the terms and conditions, including repayment options, before committing to a private or alternative loan. 


Private educational loans:

  • will reduce your eligibility for other loans

  • may have interest rates which adjust monthly

  • cannot be consolidated later with other Title VI federal loans via federal direct consolidation

  • consolidation with federal loans under a private consolidation will result in loss of federal repayment benefits such as income-based repayment or public service loan forgivenes on federal loans

  • may or may not have forbearance options during residency


Note that medical residency and relocation loans are not included in the definition of private or alternative loans as they are not for educational purposes. However, MedCAP loans would be included in calculations for other aid.

International students enrolled in health profession programs may be eligible to apply for some private loans.  However, they are usually required to have a credit worthy U.S. citizen or permanent resident as a cosigner. 

EVMS does not have preferred lenders for private or alternative student loans nor track current rights and responsibilities of various private lenders.  We urge students to be very cautious with these loans and carefully read all disclosures provided. Over the past 3 years, a few students enrolled at EVMS have used the following private lenders.  This list is limited to those lenders which are still offering private student loans to all credit worthy students:

  • Discover
  • Sallie Mae
  • Wells Fargo
  • SunTrust

This historical list is not presented in any order nor does it represent a complete list of those companies offering private student loans.  Please use caution in applying for or accepting private education loans.  Private or alternative student loans cannot be consolidated in a federal consolidation loan in order to take advantage of income based repayment or possible federal loan forgiveness programs.