What is the difference between federal and alternative loans?
A. Also referred to as “private student loans,” alternative loans provide another option than the more popular and standard forms of lending from federal and state governments, such as the Stafford Loans and PLUS Loans. Alternative loans don’t have as restrictive amount caps as Stafford Loans. Depending on eligibility, you often are able to borrow up to the cost of attendance minus your other financial aid. The interest rate is tied into prime or the LIBOR interest rates.
