Loans
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Educational loans provide a way for students to borrow money to help pay for college. The following loan programs are available:
Subsidized Limits for New Borrowers Loan Programs
Federal Direct Student Loan Eligibility for Federal Direct Student Loans is determined for all students who have filed a FAFSA (Free Application for Federal Student Aid). Students view their eligibility and accept loan funds they wish to borrow via WIReD. Student borrowing requirements:
Resources for Entrance Counseling Resources for Exit Counseling Information Federal Direct PLUS LoanParents of dependent undergraduate students are eligible to apply for this federal loan. Students must have a Free Application for Federal Student Aid (FAFSA) on file, be making satisfactory academic progress and be enrolled in a minimum of six (6) degree-applicable credit hours. Approval of this loan is based on the parent's credit history. A student should have received their financial aid award email notice prior to submitting a Federal Direct PLUS Loan application. Please refer to the Federal Direct PLUS Loan Application (available on Forms page) for more information and application procedures. Detailed information regarding these loans can be found at www.studentaid.ed.gov. Alternative LoansAn alternative loan is a personal loan from a bank that is used for educational expenses. Most alternative loans are deferrable until you graduate; however some may require you to pay interest while you are attending school. Alternative loans exist as an additional means to pay for your college education. These loans are often used as a supplement to a student’s existing financial aid package. Some alternative loans can be used to pay for prior balances up to one year old. Students who fall into unsatisfactory academic progress may also apply for certain alternative loans to help finance their education until they get back into good academic progress and receive federal financial aid again. Know the Basics It’s to your advantage to become well-informed before you take on the responsibilities that come with an educational loan. You should first apply for all other forms of financial aid, including grants, scholarships, employer tuition payments, Direct Stafford Loans, etc. before applying for an alternative loan. Get All the Facts Educate yourself before you borrow. Before taking out your alternative loan, have a clear understanding of what type of loan you have AND its characteristics, for example:
Check Out Your Repayment Options Before Borrowing Repayment may seem a long way off, but carefully choosing your alternative loan NOW can mean a less expensive and more manageable loan later. Some lenders have loans that enter repayment immediately after full disbursement. Some lenders offer programs that let you pay electronically and offer rewards, such as lower interest rates, to those who consistently pay on time. Understanding your options will help you decide how much you can borrow. Before You Sign Anything Keep in mind that these are loans, NOT grants. When you enter repayment, you will be required make monthly payments. Make sure you do not put yourself in a situation you cannot handle. Important Application Process Information According to the Higher Education Opportunity Act of 2008 (HEOA) and the Truth in Lending Act (TILA), all private education lenders must obtain a completed and signed Self-Certification Form from the applicant prior to processing a private education loan. Students can find the Cost of Attendance information needed to complete Section 2-A in the [Loading Financial Aid link…] section of the College Catalog. The Mastrangelo Financial Aid Center will assist students with completion of the form prior to the student submitting it to their lender. Once the form is completed, students should discuss the status of private education loan applications with their lender directly. |
