Step 3 - Parent & Private Loans
Factors to consider when borrowing additional loans
All students' financial aid awards are originally packaged to an estimated Direct Cost of $36,218 (Full-time Tuition, Fixed Fees, and Room & Board).
Students have the option of borrowing up to the Cost of Attendance. The estimated 2013-2014 Cost of Attendance for full-time students is $40,918
- Full-time Tuition - $27,304
- Room & Board - $8,304
- Fixed Fees - $610
- Books & Supplies Allowance - $1,000
- Transportation Allowance - $1,900
- Personal Expense Allowance - $1,800
The Office of Financial Aid encourages all students to borrow responsibly. The federal student loan programs generally provide better terms and conditions including a lower interest rate and fewer fees, therefore, we recommend borrowing federal loans prior to borrowing any private education loans. In order to receive federal loans, students must complete the Free Application for Federal Student Aid (FAFSA), to apply online go to the FAFSA website.
Prior to borrowing either a Federal Direct Parent PLUS Loan or a Private Education Loan, it is recommended that you use the Loan Calculation Worksheet to determine the amount of loan you will need to borrow.
For an overview on the different terms of Private Education Loans vs. Federal Direct Parent PLUS Loans, please review the comparison chart.
FEDERAL DIRECT PARENT PLUS LOAN (PARENTS BORROW)
(DEPENDENT STUDENTS ONLY)
It is recommended you apply before August 1, 2013 for the 2013-2014 academic year if you want the funds available for fall semester payment. FEDERAL DIRECT PLUS LOANS HAVE A DEFAULT INSURANCE FEE OF 4%.
FOR ADDITIONAL INFORMATION VISIT THE DIRECT LOAN WEBSITE.
After June 1, 2013 you may complete your Direct PLUS Loan Application online (includes pre-approval). Note: Students must have a processed FAFSA (Free Application for Federal Student Aid) on file with Carroll College prior to processing a Direct PLUS Loan.
Processing a Federal Direct Parent PLUS loan for 2013-2014:
- Make sure you have completed the Free Application for Federal Student Aid (FAFSA).
- For additional information about Direct Loans, review the Direct Loan Basics brochure.
- Complete the Federal Direct PLUS Loan Request. After you've logged onto the website, select the "Request Direct PLUS Loan"option located in the left margin of the page under the "PLUS Loan Process" tab. If you are a first-time Direct PLUS Loan Borrower, you must proceed to item number 4 below and also complete a Federal Direct PLUS Loan Master Promissory Note.
- Complete yourFederal Direct PLUS Loan Master Promissory Note:
a. Go to the "Manage My Direct Loan" section and click on the
green sign in button.
b. Fill in parent demographic information and Parent PIN
for the parent who will be requesting the loan.
c. Once signed in, select the Master Promissory
Note-Complete MPN option.
d. Select the PARENT PLUS option and complete the 4 required steps and submit. - If you are denied a Direct PLUS Loan, you may appeal the denial or use an endorser through thestudentloans.gov website, or your student may choose to request additional Direct Unsubsidized Stafford Loan funds by contacting the Financial Aid Office.
a. If your student accepts the additional Direct Stafford Unsubsidized Loan
funds, he/she must complete specific loan counseling based upon the total
number of additional Direct Unsubsidized Stafford loans that the student has
borrowed. Your student must download the Parent PLUS Loan Denial Counseling
Flyer and complete the correct counseling session based upon the total number of
additional Direct Unsubsidized Stafford Loans that they have borrowed.
Disbursement of the loan will be held until the student completes the loan
counseling.
ADDITIONAL PRIVATE LOAN OPTIONS (STUDENTS BORROW)
PLEASE NOTE: ADDITIONAL LOAN APPLICATIONS FOR THE 2012-2013 ACADEMIC YEAR WILL BE ACCEPTED BEGINNING June 1, 2013.
- Make sure you have completed a Federal FAFSA form first and have borrowed all federal loans prior to borrowing Federal Direct Parent PLUS or private student loans. If you want to waive your right to borrow a federal loan please contact the financial aid office and complete a waiver.
- Prior to completing a private student loan application you must complete a counseling session based upon on how many private loans you have taken out. You must complete a certain counseling each time you take out a new loan. Disbursements will be held until on-line counseling is completed. Download our Private Student Loan Counseling Flyer to find out which counseling is for you.
- The FASTChoice lender comparision tool helps you determine which loan is right for you by providing detailed information for various loans, as well as the terms and benefits offered by different lenders.
Factors to consider when you are looking for an additional loan:
- Method of determining the interest rate of the loan/credit scoring
- Types of repayment plans
- Early repayment options
- Other borrower benefits
- Late payment penalties
- Origination fees, up-front fees, back-end fees
- Opportunity for forbearance (example: during graduate school)
- Cosigner requirements
- Length of repayment term
FASTChoice includes the most common additional loans used by Carroll College students over the last three to five years. Students are free to borrow from any lender they choose even if they are not on our list. If you have questions or would like to request application forms, contact the lending institutions or our office at 1-800-992-3648, ext. 5425 or 406-447-5425.
Questions?
Please contact us at fao@carroll.edu.
Federal Direct PLUS Loan Application
PLEASE NOTE: All Parents borrowing the Federal Direct Parent PLUS Loan must complete the Direct PLUS Loan Application process on the Student Loans website. First-time borrowers must also complete a Federal Direct PLUS Loan Master Promissory Note.
Facts about Federal Direct PLUS Loans
Parents of a full or part-time undergraduate dependent students may take out a Federal Direct PLUS loan to assist the student in paying for college. This loan is a parent loan not a student loan. The student must have a processed FAFSA (Free Application for Federal Student Aid) on file with Carroll prior to processing a Federal Direct PLUS Loan.
The borrowing limit is the cost of attendance minus any aid the student will receive.
The parent is responsible for repayment of the loan.
Repayment begins within 60 days after the loan is fully disbursed.
The parent must meet minimal credit requirements (no adverse credit).
Federal Direct PLUS loan interest is fixed at 7.9%.
Federal Direct PLUS Loan Repayment Example
Federal student loan interest is generally tax deductible for the first 60 months of repayment.
| Loan Amount | $5,000 | $10,000 |
| Monthly Payment | $62 | $124 |