Additional Loan Opportunities
Types of Financial Aid
Federal Direct Parent PLUS Loans
This loan program allows parents of dependent students to borrow up to the amount equal to the cost of attendance minus other financial aid received. The interest rate for July 1, 2012 through June 30, 2013 is fixed at 7.9%, and an origination fee is withheld from the loan. The Federal Direct PLUS Loan is subject to a credit check. In the case of adverse credit, the borrower may apply with a credit worthy co-signer. For loans disbursed after July 1, 2008, parents have the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed, or deferring payments until six months after the dependent student ceases to be enrolled at least a half-time. While not required, it is recommended that the borrower makes payments on the interest while still in school.
To qualify, complete the FAFSA at www.fafsa.ed.gov, an online promissory note at https://studentloans.gov , and a 2012-13 PLUS Loan Authorization Form from the Financial Aid Office.
Federal Direct Graduate PLUS Loans
This loan program allows graduate students to borrow up to the amount equal to the cost of attendance minus other financial aid received. The interest rate for July 1, 2012 through June 30, 201 is fixed at 7.9%, and an origination fee is withheld from the loan. The Federal Direct Grad PLUS Loan is subject to a credit check. In the case of adverse credit, the borrower may apply with a credit worthy co-signer. You begin repayment on the Grad PLUS loan six months after you cease to be enrolled at least half-time. While not required, it is recommended that the borrower makes payments on the interest while in school.
To qualify, complete the FAFSA at www.fafsa.ed.gov, an online promissory note and entrance counseling at https://studentloans.gov.
Private Loans
Privately funded education loans from various organizations are available to students to fill the gap between cost and federal, state and institutional funding. It is best to apply for the loan as early as possible to assure funding is available at the start of the term. Some may require interest payments, however, if it is not required, it is recommended that the borrower makes payments on the interest while in school.
Private loans will typically require a co-signer, be variable rate and have longer repayment periods. Interest rates are determined by the credit of the borrower and co-borrower. Before you choose this option, keep these questions in mind:
- Have I researched outside scholarship opportunities?
- Have I received/applied for federal loans?
- Is there a remaining gap?
- What do I have saved to fill the gap?
- What will my parents contribute?
- What will I earn this summer to go towards the gap?
- Have I tried to reduce my personal expenses?
- Would a payment plan be an option?
- Do I need an additional loan?
- Will my parents take out a Parent Loan (PLUS)?
- Will I need to take out a private loan?
Questions to ask as you research private loans:
- Do I need a co-signer?
- What is the interest rate of a loan and how is it determined?
- Are there fees?
- When will I be expected to start making payments?
- What are the payment options?
- Are there deferment options?
- What is the repayment period?
- How much interest will I pay through the life of the loan?
- How long has this company been in business?
- What is the reputation of the company?
- Have I done business with this company in the past?
- If so, did I get good service?
Click HERE to view the Historical Private Lender Loan List and the link to view Grand View's Private Loan Disclosures.
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