Financing Options

 In addition to the programs described below, many families obtain funds for financing educational costs through normal consumer credit channels such as personal loans, borrowing against life insurance or other such options. Home equity loans may also provide a useful source of funds, particularly if the interest is deductible for federal income tax purposes. The "best" program(s) for an individual student or family can be determined only after a careful review of the various options as they apply to that particular situation.

Direct PLUS Loan

Once Direct Loan funds are exhausted, the next financing option would be the Direct PLUS Loan for parents of dependent undergraduate students and for graduate students. The interest rate for Direct PLUS is fixed at 7.9%. There is a loan fee of 4% of the principal amount charged for each Direct PLUS Loan that you borrow. The total fee is reduced to 2.5% due to an up-front interest rebate equal to 1.5% of the loan amount. To retain this up front rebate, the first 12 consecutive payments must be made on time. The fee and rebate will be applied before any loan money is received.

Direct PLUS Loan for Parents is a loan in the parent's name for dependent undergraduate students enrolled at least half-time in a degree program. It is not necessary to demonstrate financial need in order to receive a PLUS Loan. Approval for the PLUS Loan is based on good credit. The maximum PLUS Loan amount that parents can borrow on a yearly basis is the cost of education minus any other financial aid received.

Direct Graduate PLUS Loan is a loan in the student's name for graduate and professional studies. In order for a graduate or professional student to receive a Federal PLUS Loan they must file the Free Application for Federal Student Aid (FAFSA). Filing the FAFSA enables the student to be considered for the subsidized and unsubsidized Federal Direct Loan. Approval for the PLUS Loan is based on good credit and the student being enrolled at least half-time in a graduate or professional degree program.

To apply for the Direct PLUS Loan or the Graduate Direct PLUS Loan, you need to:

1. File the Free Application for Federal Student Aid (FAFSA)
2. Sign in at studentloans.gov using your FAFSA pin #
3. Choose REQUEST A PLUS LOAN
4. Choose either PARENT  PLUS (parents of dependent undergraduate students) or GRADUATE PLUS (graduate students only)

In addition to this request form, if you are borrowing a Direct PLUS Loan for the first time, a Master Promissory Note (MPN) must be signed. This can be signed electronically with your federal PIN. The federal PIN is the same you used when you signed the FAFSA. If you do not already have a PIN, you can go to www.pin.ed.gov.

Students should not consider borrowing private student loans until they have exhausted their maximum federal student and parent loan eligibility. The terms and conditions of these credit-based private loan programs vary, and as such, students are encouraged to review the details of the programs before selecting a private loan program.

You should consider a private loan if any of the following situations apply:

• The student or parent has exhausted their federal loan options and needs to borrow additional funds to meet the student's cost of education.
• The student or parent is unable to borrow federal student/parent loans.
• The student is responsible for financing his or her education, and he or she needs to borrow additional funds.
• The student or parents need to borrow funds for a previous semester and it is too late to borrow federal loans. (Many private loans allow students/parents to borrow funds to repay overdue university charges from previous semesters).

Tuition Payment Plans

Although the University does not offer a deferred payment schedule, information on an approved commercial service will be mailed to you by the end of May. For more information, contact Business Services at 603-862-2230.