Financial Aid

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Loans Alternative

My federal student loan doesn’t cover my full cost of education and expenses.   Are there any other loans available to me?

  • Yes.  Lenders recognize that occasionally students need to borrow more money than is available through the Federal Stafford Loan Program.
  • Most commonly these loans are referred to as alternative loans, educational loans, or private loans.
  • Alternative loans are designed to meet educational expenses for students who are enrolled, or expect to be enrolled, at an accredited college or university in the U.S.  Each lender customizes the name and requirements for their alternative loans.

What does SBCC require of students in order to process an alternative loan?

  • You must be a U.S. citizen or permanent resident.
  • You must file the FAFSA.
  • You must complete your financial aid file.
  • You must apply to have your loan funded during an eligible semester.  
  • You must apply no later than the final semester deadlines for processing loans, approximately 3 to 4 weeks before the end of the Fall or Spring semester.  Call the Financial Aid Office at (805) 730-5157 for the exact dates or click on Deadlines.
  • You do not have to meet the requirements of  SBCC’s  Satisfactory Academic Progress Policy to get and keep an alternative loan.

Which banks offer alternative loans?

Many lenders offer alternative loans.  At SBCC, you can choose any lender who offers this type of loan.  For 2009-2010, the following lenders offer alternative loans at SBCC:

We recommend contacting lenders directly regarding any alternative loan products they may offer.

How do I apply for an alternative loan?

  • Prior to processing an alternative loan at SBCC, you must file the FAFSA and complete your financial aid file. You can file the 2009-10 FAFSA electronically at www.fafsa.ed.gov SBCC’s Federal School Code for FAFSA is:  001285.
  • Next, select the lender you want to use and review their requirements and terms.  Please be aware that you may need a co-borrower.
  • You can apply on-line or by mail.  Either go to the lender’s website and complete their application on-line, or request the alternative loan paperwork be sent to you.  Complete the paperwork and return it to the lender.
  • Be sure to list Santa Barbara City College as the school you are attending so the lender will know where to send the loan certification request.
  • You have to tell the lender how much you want to borrow.  Please refer to  “How much can I borrow?” below to help you decide on a loan amount.
  • You have to select the loan period.  SBCC Financial Aid Office only processes loans for the following periods:  Academic Year (fall and spring), fall only, or spring only.

What happens next?

  • Once the lender approves the loan, a loan certification request is sent to the Financial Aid Office.  If the student’s file is complete, we will certify the loan for the lender.  If the student’s file is not complete, the certification will be placed on hold until the file is complete.
  • The lender then prepares a loan check made payable to SBCC and the student borrower and mails the check to SBCC.  Loan disbursements are divided into two equal payments over the academic year, i.e. one payment for each semester.  If a student requests a loan to be paid in one-term only, the loan is paid in one lump sum.  Loan disbursement dates are determined by the requested loan period and the date the loan is certified.
  • Once our office receives the loan check, we will verify student enrollment, endorse the check and mail it to the student at the most recent address the student has on file with the SBCC Admissions Office.
  • A Financial Aid Award notification is emailed to you listing the alternative loan.

How long does it take to process an alternative loan?

  • It depends.  Students begin the financial aid process at different times in the semester.  However, once the request for loan certification is received by SBCC, it takes approximately two to three weeks for the first loan check to be mailed to the student.
  • Please note:  No financial aid, including alternative loan monies, can be disbursed to the school sooner than 10 days prior to the beginning of a semester.

How much can I borrow?

  • Generally, the minimum alternative loan amount you can request is $1,000.
  • The maximum you can borrow is your Cost of Attendance minus any financial aid, which includes Stafford Loans.  The amount borrowed cannot exceed the student’s budget, or cost of attendance, as determined by the school. To find your Cost of Attendance, please select the appropriate budget from our website at Cost of Attendance.

Can I be denied for an alternative loan?

Yes, as alternative loans are credit-based loans.  If denied, contact your lender for information concerning any resolution options available to you.

What is the enrollment requirement for an alternative loan?

Enrollment requirements vary according to the lender, but most lenders require a minimum half-time (6.0 units) enrollment.  Please refer to your lender's website for additional information.

What is the interest rate on alternative loans?

The interest rate varies by lender.  Please refer to your lender’s website for information.

Are there any loan fees?

Loan fees vary by lender.  Please refer to your lender’s website for complete information.

When do I begin payment on my alternative loan?

Please refer to your lender’s website for detailed information on repayment.


If you have additional questions, please contact our office by emailing your financial aid advisor or calling the office at (805) 730-5157.


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