Loans
Federal Stafford Federal Parent PLUS Grad PLUS Alternative
Since college is one of the most important investments you will make in your lifetime, including loans in your financial plan will help make a college education even more affordable. Mount Ida College offers a variety of loan options for parents and students to finance balances not covered by financial aid. Education loans typically accrue interest at a lower rate than other private loans; repayments on these loans vary according to program.
Federal Stafford Loans
All students who complete the FAFSA are eligible to borrow student loans from private lenders under the Federal Stafford Loan program, without collateral or credit check. The college will notify the student of his/her eligibility for a Stafford Loan on the award letter if the student is eligible. Freshman are eligible to borrow up to $3,500, sophomores may borrow up to $4,500, and junior and seniors may borrow $5,500. The interest rate is variable, not to exceed 8.25% over the life of the loan, and is adjusted every July 1st.
Subsidized Stafford Loans are awarded to eligible students who demonstrate financial need. No interest accrues on this loan while the student is enrolled. Recipients of the Subsidized Stafford Loan are required to begin repayment six months after graduation, upon withdrawal from Mount Ida College, or if enrollment falls below six credits. The loan begins to accrue interest at any of these points in time.
Unsubsidized Stafford Loans can be awarded to students who are not eligible for need-based loans. Unsubsidized Stafford Loans accrue interest while you are in school and repayment begins six months after graduation, upon withdrawal from Mount Ida College, or if enrollment falls below six credits. You have the option to repay the interest while enrolled or to defer interest payments into the regular repayment schedule. All students are eligible to borrow a $2,000 Unsubsidized Stafford loan. Independent students who qualify for the Subsidized Stafford Loan may also be eligible to borrow additional funds under the Unsubsidized Stafford Loan at $4,000 their first and second years and $5,000 their third and fourth years. If you are a dependent student, you may receive additional Unsubsidized Loan funds only if your parent is denied the Parent PLUS Loan.
Click here to complete your Stafford Loan Master Promissory Note (MPN) and Entrance Counseling
Entrance Counseling
First time borrowers of a Federal Stafford Subsidized or Unsubsidized loan are required to complete a one-time entrance counseling session to learn about their rights and responsibilities as a borrower. This must be done before funds can be disbursed.
Click here to complete your Stafford Loan Entrance Counseling
Exit Counseling
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A student who will be graduating and has borrowed a Federal Stafford Loan while attending Mount Ida is required by the federal government to complete Exit Counseling. The Exit Counseling is also required for student borrowers who will not be returning to the college after a term of attendance. You may complete Exit Counseling at the Here I Go fair or in the Financial Aid Office.
The Parent Loan for Undergraduate Students (PLUS) allows parents to borrow from the federal government on behalf of their dependent students (enrolled in at least 6 credits). Eligibility for this loan is not based on financial need but does require a credit check. Parents are the primary borrowers (these loans are subject to a credit check) and may borrow up to the yearly cost of attendance less financial aid. The variable interest rate, not to exceed 9% over the life of the loan, is set each July 1st for the following academic year. Payment on the interest and principal begins 60 days after the second disbursement of the loan.
The Ensuring Continued Access to Student Loans Act of 2008 was signed into law on May 7, 2008. A new protection (H.R. 5715) would give parent borrowers more time to begin paying off their federal PLUS college loans. Effective on loans disbursed on or after 7/1/08 parent PLUS borrowers will be given the choice of either:
1) Entering repayment 60 days after full disbursement or
2) Delaying repayment until 6 months after the beneficiary student leaves school or drops below half-time status (During the new grace period, interest continues to accrue and can either be paid monthly or quarterly by the parent, or it can be capped not more frequently than quarterly by the lender.)
Please keep in mind that when you apply for a PLUS loan you will need to add the lender’s origination and/or default fee to the amount of money you are looking to borrow. On average, most lenders charge 3 – 4%. Once you have determined the fee you will want to take the “total expected direct expenses less total expected aid” figure from the financial aid award worksheet and divide it by the net percentage (96% or 97%).
For example, if your balance is $12,000 and your PLUS lender has a 4% fee the amount of loan you would need to apply for is $12,500. This will ensure that the balance on your student’s account, the origination fee and/or default fee for the loan are paid.
Step 1 – Calculating the net amount: 100% - 4% (fee) = 96%
Step 2 – Calculating the amount to apply for: $12,000 (balance) / .96 = $12,500 (amount you will want to borrow)
It is also important to note that the parent and student must be U.S. citizens or eligible non-citizens and neither can be in default on a prior student loan or owe a refund on a federal grant in order to be considered for a PLUS Loan.
In the case that a parent is not considered credit worthy for a PLUS, his/her dependent may be eligible for an additional Unsubsidized Stafford Loan. The financial aid office can discuss this option with you.
Click here to complete your PLUS Loan application
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Graduate/Professional PLUSGraduate or professional students must complete a FAFSA and are then eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS loans.
Click here to complete your Grad PLUS Loan application
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Alternative Loans
Many families also look to supplement their college finance plans with alternative funding that is available in the form of private education loans. Private loans are available from a variety of sources and provide supplemental funding when other financial aid does not cover costs. Because banks or other financial institutions -- rather than government agencies -- guarantee these loans, interest rates are generally higher than federal loans, but lower than personal loans.
Alternative loans will be in the students own name often requiring a co-signer. Students must be enrolled in at least six (6) credits to be eligible for these loans.
Repayment usually begins six months after a student graduates or leaves the college. Interest accrues while the student is attending college.
Students and their families are encouraged to shop for the best product for their individual circumstances. Local banks, credit unions, and other national lenders offer student loans.
When searching for a private loan, make sure you carefully consider the terms and conditions associated with it. Always borrow conservatively. We recommend that you search for school certified loans. This means that the loan company contacts the school for information on the borrower's eligibilty. Borrowing a school certified loan means that the money comes to the school directly. Loans that go directly to borrowers, called "direct to consumer" often have higher interest rates and less favorable terms. The financial aid office can not easily assist you should you have problems with a direct to consumer loan.
In general, Mount Ida College encourages students to look for loans that are school certified, have low interest rates, zero fees, and come with a variety of repayment options. Remember, when putting together your financial plan to keep alternative borrowing to the necessary minimum. Loan funds do not reach the College until 30 days after the start of the semester.
Click here to apply for an Alternative Loan
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Massachusetts No-Interest Loan
The Commonwealth offers a no-interest loan program to full-time students who are legal residents of Massachusetts and demonstrate financial need. Repayment begins six months after graduation, upon withdrawal from Mount Ida College or if enrollment falls below six credits. Loan amounts are based on the availability of funds and range from $1,000 to $4,000 per academic year.
For more information, please contact us finaid@mountida.edu or 617-928-4785.