Other Loan Options

Students receive Federal Student Loans through the award process after filing the FAFSA. The Hope award notification indicates the federal loan funds a student is eligible to receive. Sometimes families need additional resources beyond those indicated on the award letter to meet outstanding costs.

Loan Period Dates
Loan applications require a loan period. Use the following dates, always applying for the full year unless the student is attending only one semester.

• Fall 2011 & Spring 2012: 08/30/2011 to 05/04/2012
• Fall ONLY 2011: 08/30/2011 to 12/16/2011
• Spring ONLY 2012: 01/10/2012 to 05/04/2012
• Summer 2012: May - July 2012
  

Federal Direct PLUS Loans
Parents (or stepparents) may apply for a loan up to the cost of attendance minus the student's other aid. The PLUS loan requires a simple credit check approval process. (If the parent is denied, the student is eligible for additional unsubsidized Federal Direct Loan upon request.) Repayment on the PLUS loan begins after the full disbursement is made but the borrower may request postponement of interest and/or principal while the student maintains at least half time enrollment. Any postponed interest accrues and is added to the loan balance prior to the parent beginning full payment. Parents must reapply each year. For more details, click here.

Private Educational Loans
Here is another resource to consider after other federal, state and institutional student assistance has been determined. Because federal student loans generally provide a less costly alternative to private loans, apply for need-based financial aid through the FAFSA (http://www.fafsa.ed.gov) for grants and federal loans before resorting to a private loan. For more information about federal aid versus private loans, see Federal Aid First.

These loans are available regardless of financial need and offer various terms, repayment options, and choice of lender. Just as you must apply for financial aid yearly, you apply for a private loan one year at a time. The maximum loan approved will be the student's cost of attendance minus all financial aid received. Because these loans are based on credit, students generally need a credit-worthy cosigner.

The federal government's Truth in Lending and Higher Education Opportunity Act of 2010 regulates the private education loan application process. The following are some of these rules.

• As an applicant, you will receive the application disclosure and self-certification form from the lender.
• If you apply by phone, the application disclosure and self-certification form will be mailed. The self-certification form provides information about federal financial aid and encourages you to talk to the Office of Financial Aid if you have questions about the amount and type of loan you should be borrowing.
• If approved, you will receive the approval disclosure form from the lender detailing the approved loan amount, the interest rate and any origination fees.
• Once you have signed the approval disclosure form and the self-certification and promissory note are completed the forms are to be returned to the lender. The lender will then ask the school to certify the loan.
• During the school certification process the lender will send you a final disclosure form. This form must be completed and returned back to the lender before funds can be transmitted to the school.
• After your receipt of the final disclosure, the lender must provide you with a three day rescission period during which you may review your need for a private loan and have the right to cancel without penalty. Loan funds cannot be disbursed until after the end of the rescission period.

***Student applicants must submit a Self-Certification Form as part of the application process. The lender will provide the form to you either on line or in the mail. Obtain the information needed for this form from your KnowHope Plus Account. Go to the Financial Aid section, select Aid Awards, Award Year, then Award Overview.