Obtaining Additional Funding
Federal Student Loan Programs
Students initially apply for these programs by completing the Free Application for Federal Student Aid (FAFSA). If the student is eligible for an award, it will be included on the student's official award letter. Contact your school's Financial Aid office for more detail.
Other Student Loan Options
The loans in this section are State, Federal, and Private educational loans that are not automatically awarded to the student on an award letter. The student or parent must complete an additional application or request form to apply.
- FEDERAL PARENT LOAN FOR UNDERGRADUATE STUDENTS (PLUS)
This loan is an alternative funding source for parents who need additional funding to meet the cost of education. Financial need is not required to be eligible to borrow a PLUS Loan.
Parents (natural, adoptive or legal guardians) may borrow up to the cost of education minus other aid for each dependent undergraduate student who is enrolled at least half-time. This loan is made by a bank, savings and loan association, credit union or other lender and is insured by a state guarantee agency.
The interest rate on PLUS loans after July 1, 2006 is fixed at 8.5%. Interest accrues from the date of disbursement. The Federal government does not pay the interest on PLUS loans while the student is enrolled in school.
Repayment of principal and interest begins within 60 days after the date of disbursement although principal payments may be deferred under certain circumstances. Interest continues to accrue and must be paid during periods of deferment or forbearance. Lenders also have options regarding repayment methods.
The PLUS loan borrower (or the cosigner if required) must be determined credit worthy by the lender.
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ALTERNATIVE EDUCATION LOANS
Alternative Education Loans are available to students or parents as an option if the aid that the student has been awarded does not cover all of the student's educational expenses and the student has exhausted their eligibility for the Federal loan programs.
Alternative Education Loans are not based on financial need, although most lenders will evaluate the applicant's (and/or co-signer's) credit-worthiness.
What does this mean?
Currently all alternative education loans are processed using a paper application, which can be obtained from the participating lender or on-line at the lender's website.
The application should be completed by the student, borrower and/or co-signer and returned to the Student Financial Aid Office for processing or submitted on-line directly to the lender.
If the student does not have a current FAFSA on file, a Supplemental Application must be completed in addition to the loan application.
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