Federal Direct Parent Loan (“PLUS”)
Federal Direct Parent Loans are unsubsidized loans from the federal government that carry a fixed interest rate.The rate for 2017-2018 is 7%. Under the Bipartisan Student Loan Certainty Act of 2013 interest rates are determined each spring for the new loans made for the upcoming award year, which runs from July 1 to the following June 30. The loan is made to the parent of a dependent student, and the parent is responsible for repayment. The FAFSA must be completed prior to applying for the PLUS loan.
There is no application fee for a PLUS loan, but a 4.276% origination fee is deducted from the total loan proceeds before the funds are forwarded to the school each semester. Repayment of the loan can begin immediately, or may be deferred until the student is no longer enrolled at least half time.
Parents may borrow up to the cost of education minus any other financial aid received. The College will determine the actual amount that may be borrowed. Eligibility is dependent upon credit-worthiness.
If a parent borrower is denied a PLUS loan and the loan is subsequently approved for extenuating circumstances or the parent has obtained an endorser the borrower will be required to complete a PLUS Counseling on the www.studentloans.gov website before disbursement can be made.
Private Alternative Student Loans
Stonehill recommends exhausting all federal and family resources, including the Direct Plus Loan, before considering private alternative loans. Government loans are typically less expensive and carry more favorable repayment terms.
Important: Stonehill requires that all students that borrow private alternative loans complete online financial counseling before the School will certify your loan and credit your tuition bill. To complete the financial counseling logon to SALT and complete the “Student Loans” module on My Money 101. Please contact firstname.lastname@example.org with any questions.
Students may Choose any Alternative Lender
Stonehill has identified lenders that our students have borrowed from in the past three years and who are still providing alternative loans. This is an historical list only and is not a list of recommended lenders.
The FASTChoice loan comparison tool is provided by Great Lakes Higher Education Assistance Corp. to assist students in comparing alternative loan rates and fees, repayment and deferment terms and lender disclosure notices. Students are not limited from using lenders on this list.
Many students use private scholarships as a way to help fund their education. Last year Stonehill students received over $1 Million in private scholarships.