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.

Federal PLUS Loan

Once Federal Stafford loan funds are exhausted, the next financing option would be the Federal PLUS Loan for parents of dependent undergraduate students and for graduate students.

You must apply for a Federal PLUS Loan directly with a lender. Federal PLUS Loans guaranteed on or after July 1, 2006 have a fixed interest rate of 8.50%. There are fees involved in applying for a Federal PLUS Loan: 3% Origination fee and 0% to 1% Default fee.

Federal 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.

Federal 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 Stafford 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.

Other Alternative Loan Programs

The University of New Hampshire's Financial Aid Office recommends that you explore all other possible financing options before applying for an Alternative Loan. If you would like to discuss your options with a Financial Aid Officer, please stop by the Financial Aid Office in Stoke Hall or call (603) 862-3600 to set up an appointment.

What is an Alternative Loan?
Also referred to as "Private Loans," Alternative Loans are offered by private lenders to students or parents of students as either an alternative to, or in addition to, federal loans. The terms and interest rates of these loans can vary and can increase after you close the loan. Therefore, it is important to carefully review the terms of the loan that you are considering.

Questions to Ask:
   * What fees are charged and how are they calculated? When and how are the fees paid?
   * What is the interest rate? Is it fixed or variable?
   * When does repayment begin? Can payments be deferred? What is the total cost of the loan over the life of the loan?
   * Is a co-signer required and, if so, can they be released at a later date?
   * Is the interest capitalized and, if so, when?
   * Do I have to be admitted to a degree program to be eligible for the loan?

Things to Consider:
   * Consider your budget
   * What are my billable education costs?
   * What are my basic expenses?
   * How can I reduce my expenses?
   * How much have I already borrowed?
   * Should I consider part-time work?
   * How much debt am I willing and able to assume?

Helpful Budgeting Websites:
   Mapping Your Future

The cost of your loan:
Use a loan calculator to determine what this loan will cost you.
    example: amount of loan   $10,000
                 term of loan       10 years
                 interest rate       9.5%
                 monthly payment $130
Over the course of this loan, you will have paid a total of $15,480. Of this amount, $5,480 of the total paid will go toward interest. While many Alternative Loans offer extended repayment terms (up to 25 years), choosing an extended repayment results in paying more interest over the life of the loan.

If possible, interest payments should be made while you are in school to avoid having interest added to the total amount of your loan (capitalized) once you enter repayment. These interest payments are often minimal and paying them up front will reduce the total overall cost of your loan.

**Alternative Loans cannot be consolidated with Federal Loans into a Federal Consolidation Loan.

**Alternative Loans are not discharged due to disability or death.

Process for Receiving an Alternative Loan:
   Meet with your Financial Aid Counselor > Complete Loan Application > Loan is processed > Funds are disbursed and applied to your account at Business Services.
   If loan proceeds are greater than your bill, you can request a refund check. From start to finish, expect the process to take 2 to 4 weeks.

See the Alternative Loan Options brochure or contact the Financial Aid Office if you have any questions.
 

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.