The Point

We encourage our students to AVOID alternative loans because:

1. Alternative loans are at least TWICE AS EXPENSIVE as Stafford Loans;
2. Alternative loans have NO LIMIT on how high their annual interest rates can go;
3. They grow HIGH INTEREST while you are in school.

Better loan options:

1. Stafford, PLUS and Graduate Plus loans are much LESS EXPENSIVE;
2. You SAVE THOUSANDS of dollars;
3. Stafford, PLUS and Graduate PLUS loans are EASY TO QUALIFY for—even if you earn a million a year.

The Reason

People with less debt find it easier to…

• We want you to graduate from BYU "financially well-positioned for life."
• If you could have a Stafford or PLUS loan and you choose an alternative loan instead, then you unnecessarily give away thousands of dollars you need for your future.
• That increases your debt and payments, making it harder to buy a home, begin investing, enjoy financial life, serve and have increased marital harmony.

The Comparison

See the side-by-side comparison of a typical alternative loan with the Stafford, PLUS, or Graduate PLUS loan:

Scenario 1: You borrow $10,000, wait 4 years to begin repaying and then repay over 10 years:
LOAN TYPE	Alternative Loan	Stafford Subsidized	Stafford Unsubsidized	PLUS & Grad PLUS
INTEREST RATE	14% variable	6.8% fixed	6.8% fixed	8.5% fixed
BORROWED	$10,000	$10,000	$10,000	$10,000
TOTAL PAID	$31,468	$13,810	$17,966	$20,620
How much more did the alternative loan cost?
	$17,658	compared to Stafford Subsidized
	$13,501	compared to Stafford Unsubsidized
	$10,848	compared to PLUS
Scenario 2: Same as above except you repay over 15 years:
How much more did the alternative loan cost?
	$24,507	compared to Stafford Subsidized
	$19,697	compared to Stafford Unsubsidized
	$15,929	compared to PLUS

The Way Forward

1. If you truly need a loan, consider a less expensive one.
2. Click here to apply for a Stafford or PLUS loan. Graduate MSM and law students may also click here to request the BYU MSM or Woolley loan.
3. If you have already received your maximum Stafford, PLUS, Graduate PLUS, BYU MSM, and/or Woolley loans for the year, or if your academic standing prevents you from qualifying, then please call (801) 422-4104 and set an appointment with your financial aid counselor to assist in evaluating your options.