Private or Alternative Loans

The Higher Education Opportunity Act of 2008 mandated a number of significant changes to provide a significant amount of additional information to families who choose to utilize private educational loans.  The regulations change the disclosure requirements for the The Truth and Lending Act for non Title IV education loans made expressly for post-secondary education expenses.

A growing number of private lenders are marketing private loans directly to students. These loan programs are set up to totally circumvent the financial aid office. Legitimate lenders should be following basic standards in their dealings with families. The Department of Education has ruled that these loans must be counted as a resource in determining a student's eligibility for federal financial aid funds. If we discover you have received one of these loans, we will have to adjust your financial aid award to incorporate this loan into your package. This would normally result in the loss of "better" aid funds (need-based grants and scholarships and government subsidized loans). Please speak to a financial aid representative before applying for a private or alternative loan. We strongly encourage families to fully utilize all federal aid programs before turning to this source of funds.

In order to receive an alternative loan at FTCC, a student will need an approved loan application from an outside lender. Students are free to apply with any lender they choose.

If a student chooses to apply for a private or alternative loan, a student;

  • should have a valid FAFSA on file with unmet need
  • be enrolled in at least 6 credit hours
  • not be on FA Termination or Maximum Credits

Before funds are released, all these requirements must be met.

*Note - If a student is registered for second eight week classes and does not meet the credit hour requirement until the beginning of that term.

When a student applies for an alternative or private education loan, it is typically awarded half for the Fall semester and half for the Spring semester. Other disbursement arrangements can be made by contacting the Financial Aid Office.

Fayetteville Technical Community College‚Äôs Financial Aid Office does not provide a preferred lender list. Families are free to choose any lender which best serves their needs. You should visit each potential lender's web site to fully evaluate the benefits that they offer before making a final choice of a lender for your loans. 

 

 

Financial Aid Services

Fayetteville Technical Community College
P. O. Box 35236
2201 Hull Road
Fayetteville NC 28303-0236
Phone: (910) 678-8242
Fax: (910) 486-3600


Financial Aid Office is located in the Tony Rand Student Center at the One Stop Shop.