FEDERAL PARENT PLUS LOAN:
The maximum amount that parents are allowed to borrow through a Parent PLUS Loan is the total cost of attendance minus all financial aid (including other Federal loans). The Direct Parent PLUS interest rate for the 2017-2018 is fixed at 7% (an additional .25% interest rate reduction is applied to the loan when using auto-debit for repayment). Please remember, an origination fee of 4.276% is automatically deducted from the loan amount. To apply visit studentloans.gov. You will need your FSA ID to login.
PRIVATE EDUCATION LOANS:
Private (alternative) loans are offered by various banks, lending institutions, credit unions, and state agencies. The borrower is the student and in most cases a credit-worthy co-signer is required. These loans are not associated with the federal government.
Interest rates are typically variable and interest will generally start to accrue after the loan funds are disbursed to the school. Depending on the lending institution, interest payments may be required while the student is enrolled in school. Students who receive the best interest rates typically have good credit or have a co-signer with good credit. Many lenders require that students have a co-signer.
A private loan can be used to cover the cost of education minus all other financial aid for each academic year.
Below is a historical listing of banks used by Siena students for private education loans: