Additional Loan Options
Private Loan Programs may be available from several lenders. If students still need money for college after reaching the borrowing limits for federal loans, students and families should first look at monthly payment plan options or the Federal PLUS Loan option before private loan options. Private loans often carry higher interest rates and fees than federal loans or home equity loans and may have less attractive repayment terms. Typically interest rates on private loans are variable and can change from month to month.
Private loans are based on the credit worthiness of the borrower, income-to-date ration and may require a co-signer. The information in the borrower’s and co-signer’s credit report will determine the interest rates qualified for. There is usually a minimum loan amount depending on the lender's requirements. The terms and conditions vary depending on the lender’s requirements. Borrowers may be allowed to defer payment of principal and interest on the loan while the student is enrolled in school. Note that you may borrow a private loan through any program that you choose. Be sure to maximize your federal loan eligibility before applying for a more expensive private student loan. We urge students and parents who are borrowing to visit each lender’s website and find the lender that best suits their needs.
The following list represents lenders from whom our students have borrowed during the 2009 – 2010 academic year:
MEFA Loan
This loan is made available by the Massachusetts Educational Financing Authority. Parents of full-time undergraduates may borrow up to the full cost of education minus any financial aid. Borrowers do not have to be MA residents. For further information or to apply is available online at www.mefa.org or by calling 1-800-809-0571
Many loan and other programs have been established during the past few years. These might even include home refinancing, home equity accounts, etc. We strongly urge you or your parents to contact the Student Financial Services Office if you or they are considering methods for financing the cost of education. We may be able to provide insight about strengths, weaknesses, and pitfalls of different financing methods. The ultimate decision to finance the student’s education must be with the student and their family.
