Student Loan Information

Student and Parent Loan Information
A loan is a form of financial aid that must be repaid with interest. The two types of Education Loans that are available are the Federal Stafford Loan (student loan) and the Federal PLUS Loan (parent loan). These loans have specific regulations and interest rates that are set and monitored by the Department of Education.

Alternative loans are also available. However, they are not associated with the Federal government and are offered directly through lenders and normally carry a higher interest rate.

Application Deadlines
You may apply for a Stafford or PLUS Loan at any point throughout the term for which you want the loan, but you cannot borrow a Stafford or PLUS Loan for a term that has already ended. Early completion of your loan application ensures a timely disbursement onto your account.

Academic Year 2008/2009  Fall Only 2008: Dec. 3, 2008 Spring Only 2009: May 1, 2009    Academic Year 2008/2009: May 1, 2009

How Skidmore Selects Lenders for Your Consideration Tips for Selecting a Student Loan Lender Federal Stafford Loan Q & A Students Applying for Stafford Loan Only (2008/2009) Preferred Lender List - Stafford Loans Student Loan Entrance and Exit Counseling NEW! Stafford Loan Limits Federal Parent Loan for Undergraduate Students (PLUS) Q & A Parents Applying for PLUS Loan Only Preferred Lender List - Parent PLUS Loans Federal Perkins Loan Alternative Loans Useful Loan Tools Skidmore College Installment Plan (SCIP)

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For Parents to Think About

After going through the financial aid process, many parents ask the question "How do I pay the parent contribution?” Or when their child does not show eligibility for aid, they will ask, "How do I pay the total cost?”

As college costs continue to increase, more families are finding it difficult to meet the contributions expected of them. Many families finance the parent contribution through a combination of savings, current earnings, and borrowing. For those families who are not able to save any money or were not in a position to save enough based on their spending patterns, financing may be the primary way in which they will pay college costs.

If you are willing to consider financing as a way to help meet the expected contribution, we will work with you in determining if there are particular financing plans that will enable you to meet the parent contribution.

Here are some examples of borrowing and loan terms:

1. Borrow $4,000 through a Federal PLUS Loan. Monthly payments would be $50 and paid for ten years. Fixed interest rate is 8.50%.
2. Borrow $7,500 through a Federal PLUS Loan. Monthly payments would be $93 and paid for ten years. Fixed interest rate is 8.50%.
3. Borrow $20,000 from Citibank's CitiAssist Loan Program. Monthly payments would be $146 for twenty years.  Variable interest rate is 6.25%.
4. Borrow $15,000 through a home equity loan. Monthly payments would be $165 and paid for ten years. Fixed interest rate is 5.75%. Interest paid is tax deductible in most cases.

NOTE: Examples cited illustrate rates in effect on March 4, 2008. Monthly payments assume that interest rates are constant and that loans will not be paid off early. Amounts borrowed are for one academic year.

FSA Ombudsman

It is important for student borrowers to keep records of all loans requested. The FSA Ombudsman is working with student loan borrowers to informally resolve loan disputes and problems. The Ombudsman will help borrowers having problems with the following federal loans:

• Federal Subsidized and Unsubsidized Direct PLUS Loans (for parents)
• Federal Subsidized and Unsubsidized Stafford Loans
• Perkins Loans