Private Educational Loans
Students who need additional help meeting college expenses may be able to obtain a private or alternative educational loan. These types of loans are offered through many organizations, banks, and credit unions. Application for an alternative loan is made directly through the lending institution.
Reynolds recommends that students complete the Free Application for Federal Student Aid (FAFSA) to determine eligibility for federal loans before applying with private lenders. The terms and conditions for federal Title IV loans may be more favorable than those of private lenders.
Students may receive private loans up to the cost of attendance (budget) minus all other financial aid and resources. Students cannot receive more than their cost of attendance. Potential borrowers should make a decision on a lender after first comparing interest rates, repayment terms, loan limits, eligibility, and loan fees and other benefits.
Reynolds does not endorse any particular private lender. We will certify loans (based on eligibility) for any lender that a student may choose. The credit check performed by most lenders expires after 90 to 120 days (please contact your lender to verify the credit expiration date). Students should take this into consideration before making any application to avoid potential delays due to credit expiration.
You will need to respond to all of the lender requests promptly and allow at least four weeks for processing. J. Sargeant Reynolds cannot defer student account balances until a loan approval from the lender is received.
To learn more about the difference between Federal Direct Student loans and private loans please visit: https://studentaid.ed.gov/sa/types/loans/federal-vs-private.
Steps for the Private Loan process:
- Student chooses lender and applies for private loan
- Loan servicer notifies Reynolds Financial Aid Office
- Reynolds Financial Aid Office certifies the loan
- Private loan funds are sent from the lender to Reynolds Financial Aid Office
- Reynolds reviews student’s enrollment to ensure enrollment is the same as when the loan was certified. If there has been a reduction in enrollment, it is possible that the loan will be reduced to prevent an overaward of funds above the student’s Cost of Attendance budget.
- Private loan funds are disbursed to pay tuition, fees, and book expenses. If a student is eligible to receive a refund back once all tuition, fees, and book charge expenses have been paid, refunds will be processed and sent out by The Tuition Management Systems (TMS).
There are three (2) options to receive your refund;
- Have your refund check mailed to you at the address currently in the college database. There is nothing you will have to do. It will be mailed out automatically. OR
- Have your refund ACH/Direct Deposit to your personal banking (Checking/Savings) account. You will have to enroll with the TMS.
To enroll for Direct Deposit you must enroll with TMS agency by going to: www.reynolds.afford.com/refunds