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Student Loans
Over the past year, you may have read or heard about alleged abuses in the college loan industry, “preferred lender” practices & inducements and, most recently, about lenders that are no longer participating in the student loan business.
Fortunately but not surprisingly, at Lafayette, many of our past lenders will continue to participate in the student loan program and will continue to offer the exceptional customer service, timely processing and web based applications our families and our staff expect from our college partners.
Our suggestions about student lenders are based on a yearly review of some of the following:
- rates
- knowledgeable and prompt customer service
- ease of application
- processing and disbursements
- past input from our current students and families
The suggested list is comprised of 3-5 lenders that offer competitive rates, long term servicing, timely processing and strong customer service for our staff and our families.
We know many families appreciate having a list of lenders they can select and they also have the option of choosing a lender that is not on our list. In those cases, we ask that the students contact our office so we are aware of the lender, can make sure the student knows the terms s/he is selecting, and we can provide counsel if we think it is necessary.
The financial aid staff is dedicated to providing access and, as such, it is our mission to coordinate all aspects of a financial aid award (grants, loans and campus employment) and provide assistance and guidance on application procedures, financial concerns as well as loan programs and financing options. The office serves as the steward for all private, federal, state and institutional funds that enable our students and families to fund their college education and each staff member takes the responsibility very seriously.
We welcome your input and encourage you to contact us with any questions or concerns.
To access the list of lenders for your Stafford student loan, PLUS loan and/or alternative loan, please click on the following link: www.elmselect.com
Please note that there are new Stafford loan limits effective as of July 1, 2008. The loan limits are as follows:
| Dependent Student Federal Stafford Loan limits |
Base eligibility |
Additional Unsubsidized eligibility |
Total Stafford loan eligibility |
Additional unsubsidized eligibility (see note 4 below) |
| Freshman |
$3,500 |
$2,000 |
$5,500 |
$4,000 |
| Sophomore |
$4,500 |
$2,000 |
$6,500 |
$4,000 |
| Junior & Senior |
$5,500 |
$2,000 |
$7,500 |
$5,000 |
Keep in mind:
- Subsidized eligibility for the base amount is determined by the results of the FAFSA and/or the full financial aid review.
- The total amount of Stafford loans is limited to the cost of attendance minus other financial aid.
- Stafford loans are in the student's name only.
- Independent students or dependent students whose parent PLUS loan has been denied, may apply for the additional $4000 or $5000 unsubsidized eligibility.
Request Additional Unsubsidized Stafford Loan
Federal Loan Sources
1. Stafford Loans are student loans in the amount of $3,500 for first-year students, $4,500 for sophomores, and $5,500 for juniors and seniors. The program offers both subsidized and unsubsidized loans; eligibility for each is determined by the Office of Financial Aid based on the FAFSA, financial aid received, and total costs. The interest rate is fixed at 6% for loans made after July 1, 2008. Unsubsidized loans require the student to make interest payments while in school but interest may also be capitalized at the student’s request. TO APPLY, visit www.elmselect.com. Follow the online instructions to complete the application process.
2. PLUS Loans allow parents of undergraduate students to borrow as much as the total cost of education minus all other financial aid. Parent borrowers must be U.S. citizens and creditworthy. Payments begin 60 days after final disbursement. The interest rate is fixed at 8.5 percent. TO APPLY, visit www.elmselect.com. Follow the online instructions to complete the application process.
Alternative Loans
For information on alternative loan sources, go to www.elmselect.com, or contact the Financial Aid Office to discuss options that may work for you.
Payment Plans
1. TuitionPay Plan allows families to pay part or all of their educational costs through 10 monthly payments. No interest is charged but there is a nominal annual fee. More information is mailed in spring and can also be obtained through www.tuitionpay.com or (800) 635-0120.
2. Tuition Prepayment Plan allows families who are not receiving Lafayette-funded aid (need-based or merit) to “lock in” the College’s tuition for a minimum of two or four years. By paying tuition up front, the parent of a first-year student can lock in the rate of tuition through graduation. The rate would be the amount charged in the first year of plan participation. Room and board charges would still fluctuate yearly. If the student withdraws before the prepaid fees have been used, the balance will be refunded but no interest will be paid on the funds for the period they were on deposit with the College.
Billing
The Controller’s Office sends a bill for each semester’s expenses. Each student’s financial aid award is divided equally between the two semesters and credited accordingly on the bill.
Bills are mailed on or about July 10 for the fall semester and December 10 for the spring semester. Payment is due three weeks prior to the start of classes. |
