Credit Based Loans C di B d L for Parents and Students
Presented by KSC Student Financial Services
What are Parent PLUS Loans?
Parent Loan for Undergraduate Students (PLUS). Federal loan program designed as a long-term longfinancing option for parents or stepparents.
What are credit based loans?
Credit based loans provide supplemental assistance to parents and students for direct and indirect educational expenses expenses. Approval is not based on financial need (FAFSA), (FAFSA) but the applicant must meet credit and other eligibility requirements. PLUS loans and Alternative loans are available. l d Al i l il bl
What are Alternative Loans?
Credit based loan borrowed in the students name, likely with a credit approved cosigner. Student must be age 18 when the promissory note/application is signed. t / ppli ti i i d Use with caution as the Federal Stafford loan totals $19,000 over four years of undergraduate study (with the potential for an additional $8,000 in unsubsidized loans).
How Much Can We Borrow?
Minus: Equals:
Cost of attendance All other sources of aid* aid* Total amount that can be borrowed
*Grants, Scholarships, Loans, College Work-Study WorkPlease Note: We recommend that families borrow the full amount needed for the academic year.
Borrower Eligibility
PLUS loan: Parent or stepparent of dependent, g undergraduate student is the borrower. Alternative loan: Student is the borrower. Approved credit check from the lender. U.S. citizen or eligible non-citizen. non-
Loan Amounts
Minimum loan amount is typically $500. Maximum loan amount is the Cost of Attendance minus all other sources of aid.
Interest Rate
The PLUS interest rate is fixed at 8.5%. The Alternative interest rates are variable and are typically based on Prime Rate or LIBOR. Interest rate reduction incentives vary by lender for on-time payments and automatic payment onfrom your bank account account.
Origination Fees
Origination fees vary from lender to lender. Information is included in the disclosure statement provided b the l d id d by h lender. Origination fees on PLUS loans are usually 0-4%. 0Origination fees for Alternative loans range from 0-9%. 0Please Note: Before signing any promissory note, read the fi print regarding b h fine i di borrower rights, responsibilities, i h ibili i and repayment terms.
Repayment Period
Standard repayment term up to 10 years. $50.00 i i $50 00 minimum monthly payment. hl PLUS loan repayment starts after the second loan disbursement. No payment required on Alternative loans while p y q student is enrolled. N p No penalties for early repayment. s y p y
Sample Loan Repayment Schedule p p y
Loan Amount L A t $6,000 $8,000 $8 000 $10,000 $12,000 $12 000 Term T 120 months 120 months th 120 months 120 months Monthly P M thl Payment t $74 $99 $124 $149
Please Note: Schedule assumes a fixed interest rate of 8.5%. Monthly payments are rounded to the nearest dollar.
More Information
For more detailed information about loans visit us online:
Go to www.keene.edu/sfs. www.keene.edu/sfs. C c o oa s t e e t a g . Click on Loans in the left margin.
Begin at the Beginning…
To start the loan application process: Go to our website at www.keene.edu/sfs. www.keene.edu/sfs. Click on Loans in the left margin. Select the loan program and lender that best meets your family’s needs.
What’s Next? What s
Borrower completes the loan application. Student Financial Services certifies the loan; please allow 7-10 business days. Borrower completes the promissory note. B l h i The lender guarantees the loan.
Final Steps
Our office will mail the student an award notification listing the guaranteed loan. Lender will send a disclosure statement identifying the disbursement amounts per semester. semester Disbursement amounts may be deducted from the semester’s tuition bill h ’ i i bill. *** Due Friday, August 1, 2008 ***
Acceptable Forms of Payment
QuikPAY li Q ikPAY online Cash/check Credit card – MasterCard/Visa Federal, state, and institutional grants and g loans (students must file FAFSA each year, by March 1,
to determine their eligibility for financial aid)
TuitionPay 10T i i P 10-month payment plan h l Federal Parent PLUS loan (must be guaranteed) Alternative loan (must be guaranteed)