Protect Your Information When Taking out an Alternative Loan

Most consumers today are aware that identity theft is a problem and take the time to safeguard their information. We want to help college students and parents realize that identity theft isn’t limited to someone stealing your wallet or hacking into your computer. Identity crimes have become very complex; once you are a victim, it could take years to recover your good credit and monetary losses.

If you are applying for an alternative loan for school, you and your co-signer should consider these precautions that will help protect your personal information:

Alternative Loan Tips

  1. Choose a reputable lender

    Ask your school’s financial aid office if they have a list of suggested lenders for alternative student loans that you can research. If you’re doing research on your own, make sure you choose a major lender or can verify the company’s information before you give them any of your personal information.

  2. Protect your computer

    Your lender has a responsibility to provide you with a secure environment where you can apply online, but there are plenty of things you can do to help protect your activities online. Make sure you have an updated anti-virus program running whenever you’re online. If unbeknownst to you, a malicious program was installed on your computer, it’s possible that someone could use that to acquire your information.

  3. Enhance your account security

    When you are creating a login and password for your alternative loan account, be sure to create a strong password. Your alternative loan lender may have specific password rules that you will need to follow, but that doesn’t mean you can’t get creative for the sake of your security. Don’t use common personal information that someone might know about you in your password. If allowed, special characters (@#$%) can increase the security of your password. In general, the longer your password, the harder it will be to figure out.

  4. Take care of your personal documents

    Alternative loan lenders may require a copy of your license, proof of enrollment or proof of income to verify your identity and the information you entered into your application. Make sure you feel comfortable with the method used when sending your documents (ie. mail, fax, email) and know who you are sending them to. Once you are finished, shred unnecessary documents that contain your personal information.

  5. Read everything

    As a borrower, it’s your responsibility to make sure you understand all of the loan obligations before completing the process. Read all of the documents carefully and contact your lender if you have questions. If there is something about the loan terms that you don’t agree with, shop around for another lender. Make sure you keep your loan paperwork in a safe place, like a locked cabinet, since it contains your personal information.

    6. If you are co-signing an alternative loan for a student, make sure you read the loan documents carefully and have agreed to co-sign for the amount requested on the application. As a co-signer, you are also responsible for the repayment of the alternative loan. Make sure you understand all of your responsibilities before you complete the alternative loan promissory note.

    For more private loan questions and answers, check out our private loan blog.