Universal Technical Institute Inc. has developed a $10 million private loan initiative designed to help students facing the challenges of bridging the tuition gap in today’s tight credit market, the company said in a press release July 2. The program assists select students who have exhausted traditional Title IV student financial aid eligibility, are unable to qualify for credit-based loan programs and therefore might not otherwise be able to attend UTI.
Loans will be originated by 1st Century Bank, N.A. and serviced by ACS Education Services, Inc. To ensure the terms and conditions of these loans remain favorable for students, UTI will bear ultimate financial responsibility for the re-payment of loans originated under this program.
“Traditional federal student aid and alternative student loans are still the first and best sources of funding for our students, but this program will greatly assist those who would otherwise be unable to pursue their education goals because of an inability to obtain reasonable loans through other sources,” said Kimberly McWaters, UTI president and CEO. “Helping eligible students bridge the tuition gap on a limited basis is a good use of UTI’s strong balance sheet and further enhances our capacity utilization.”