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									   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
Federal loan program designed as a long-term
financing 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
Approval is not based on financial need
(FAFSA) but the applicant must meet credit
and other eligibility requirements.
       l       d Al        i l            il bl
PLUS loans and Alternative loans are available.
 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
   t / ppli ti i i d
note/application is signed.
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?

          Cost of attendance
Minus:                         aid*
          All other sources of aid*
Equals:   Total amount that can be borrowed

*Grants, Scholarships, Loans, College Work-Study

Please Note: We recommend that families borrow the
full amount needed for the academic year.
        Borrower Eligibility

PLUS loan: Parent or stepparent of dependent,
undergraduate student is the borrower.
Alternative loan: Student is the borrower.
Approved credit check from the lender.
U.S. citizen or eligible non-citizen.
            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
from your bank account
            Origination Fees

Origination fees vary from lender to lender.
Information is included in the disclosure statement
     id d by h lender.
provided b the l d
Origination fees on PLUS loans are usually 0-4%.
Origination fees for Alternative loans range from 0-9%.
Please Note: Before signing any promissory note, read
 h fine i          di borrower rights, responsibilities,
the fi print regarding b           i h           ibili i
and repayment terms.
        Repayment Period

Standard repayment term up to 10 years.
$50.00 i i              hl
$50 00 minimum monthly payment.
PLUS loan repayment starts after the second
loan disbursement.
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No payment required on Alternative loans while
student is enrolled.
N p         s        y p y
No penalties for early repayment.
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Sample Loan Repayment Schedule

  Loan Amount
  L    A    t        Term
                     T            Monthly P   t
                                  M thl Payment
     $6,000       120 months             $74
     $8 000
     $8,000              th
                  120 months             $99
     $10,000      120 months            $124
     $12 000
     $12,000      120 months            $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
  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
 Click on Loans in the left margin.
 Select the loan program and lender that best
 meets your family’s needs.
             What s
             What’s Next?

Borrower completes the loan application.
Student Financial Services certifies the loan;
please allow 7-10 business days.
B               l     h        i
Borrower completes the promissory note.
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
Disbursement amounts may be deducted from
 h            ’ i i bill.
the semester’s tuition bill
     *** Due Friday, August 1, 2008 ***
Acceptable Forms of Payment

 QuikPAY li
 Q ikPAY online
 Credit card – MasterCard/Visa
 Federal, state, and institutional grants and
 loans (students must file FAFSA each year, by March 1,
 to determine their eligibility for financial aid)
 TuitionPay 10-      h
 T i i P 10-month payment plan      l
 Federal Parent PLUS loan (must be guaranteed)
 Alternative loan (must be guaranteed)

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