2009-10 Academic Year Monthly Payment Plan | Federal Direct Parent Loans for Undergraduate Students (PLUS) | Private Alternative Loan Programs The following list contains loan resources and alternative financing options for families who are ineligible for need-based forms of financial aid or who need additional funds beyond their financial aid eligibility. The least expensive option to finance the payment of educational expenses is the monthly payment plan. The monthly payment plan allows interest free monthly payments for a modest annual service fee. If you or your parents are considering borrowing to finance all or a portion of your educational expenses, refer to the attached chart which compares the terms and features of the Federal Parent Loan Program with Private Alternative Education Loan programs. Because each family's financial circumstances will differ, Loyola College is unable to recommend a specific program that will best suit an individual family's needs. Before you decide to borrow, carefully investigate all of your options. Make sure that you understand the application procedures, eligibility criteria, interest rate and processing fees, disbursement procedures, and repayment terms for each program you are considering. Private alternative education loans are typically the most expensive borrowing option, therefore, should only be considered after eligibility for all federal student and parent loan options have been determined. 1. Monthly Payment Plan The convenience of paying educational expenses on a monthly basis is an attractive alternative to many families. Loyola College has no provision for offering special tuition payment plans which allow monthly payments. However, there is a commercial plan available through Tuition Management Systems, Inc. TMS offers an interest-free monthly payment service for a one-time $72.00 annual enrollment fee. The service allows families to make payments on the balance owed over a 10 month period without incurring late payment fees. Tuition Management Systems, Inc.
Payment Processing Center
P.O. Box 842722
Boston, MA 02284-2722
1-888-713-7234
Email: service@afford.com
www.afford.com/loyola
Return to the top of the page. 2. Federal Direct Parent Loans for Undergraduate Students (PLUS) The Federal Direct PLUS Loan Program allows parents of undergraduate students who do not have an adverse credit history to borrow up to the full cost of attendance* minus other financial aid. The interest rate is fixed at 7.9 percent and there is a loan origination fee of 4.0 percent deducted from each disbursement. A 1.5 percent rebate of the loan amount for on time payments is currently added back to each disbursement. Therefore, the net disbursement amount equals 97.5 percent of each disbursement of the loan. Interest accrual begins on the date of the first disbursement. The first payment is due within 60 days after the final loan disbursement. For many parents interest paid on PLUS Loans is tax deductible.
Parents who wish to borrow funds through this program should complete the Federal Direct PLUS Loan Request Form which can be found by clicking here. The parent borrower must also complete an electronic Master Promissory Note (MPN) to borrow through this program. Complete the Direct PLUS Loan MPN online at the Federal eMPN system at http://dlenote.ed.gov.
Return to the top of the page. 3. Private Alternative Loan Programs Private educational loan programs are non-federal loans issued by banks, savings and loan associations, and credit unions. These programs allow students to borrow up to the full cost of attendance* minus other forms of financial aid. Most students will need a creditworthy co-signer such as a parent or other relative in order to obtain a private loan. Private educational loans carry variable interest rates based on the LIBOR rate or the Prime rate and repayment periods may range from 5 to 25 years. Interest rates, origination fees, loan maximums, and repayment terms should be carefully considered when researching and choosing a private loan. Once an application is approved by a lender, the school will receive an electronic certification request. The proceeds of private alternative education loans may not be credited to a student's account until the funds are actually received by the University. Therefore, if the loan proceeds will be used to pay a remaining balance due, the loan application process should be completed well in advance of the bill payment due date. * A college's cost of attendance includes actual tuition and fees and standard allowances for room and board, books and supplies, transportation, and personal expenses. Student Lending Analytics, an independent loan research and advisory firm, provides a website that contains a list of lenders currently offering private alternative educational loans. This website also provides a table that compares each lender's minimum and maximum interest rates, origination fees, repayment terms and benefits, and other loan terms and conditions. http://www.studentlendinganalytics.com/alternative_loan_options.html
The Project on Student Debt, an initiative of the Institute for College Access & Success, a nonprofit independent research and policy organization, offers sound advice and information to consider when applying for a private alternative educational loan. http://projectonstudentdebt.org/advice.vp.html Return to the top of the page.
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