STUDENT LOANS
Federal Stafford Loan Program
U.S. citizens and Permanent Residents of the U.S. may borrow the following amounts through the Federal Stafford Loan Program:
| $3500 | First Year Students |
| $4500 | Second Year Students |
| $5500 | Third and Fourth Year Students |
For loans disbursed after July 1, 2008, the interest rate for Federal Subsidized Stafford Loans will be fixed at 6.0 percent. The interest rate for Federal Unsubsidized Loans will be fixed at 6.8 percent. Repayment of the loan extends up to 10 years, with deferments available during periods of unemployment, economic hardship, or continued education.
Students who demonstrate financial need are subsidized by having the interest on the loan paid by the federal government while they are in school, for six months after graduation, and during deferment periods.
Students who do not qualify for the federal subsidy are still able to borrow through the Federal Stafford Loan Program. The loan amounts are the same as for the subsidized program. However, unsubsidized students are required to either pay the interest while in school or to capitalize the accrued interest into a repayment schedule that starts after graduation. Federal Perkins Loan
Federal Perkins Loans are awarded to students who demonstrate exceptional financial need based on the availability of funds. The interest rate is 5%, and no interest accrues until nine months after graduation.
PARENT LOANS
Parent loan programs are offered by the federal government, commercial lenders and loan agencies. Parents who are credit worthy can borrow up to the total costs of education, less the amount of financial aid awarded. Two popular programs are described here but you are in no way limited to these options.
MEFA Loan
MEFA loans are offered to parents of Babson students through the Massachusetts Educational Financing Authority. The loan program, designed especially for middle-income families, has attractive fixed and variable interest-rate options. Repayment extends up to 20 years. For more information, call MEFA at (800) 449-6332, or visit the MEFA website at www.mefa.org.
Federal Parent Loan for Undergraduate Students (PLUS)
The Federal PLUS loan is available through most commercial lenders. The interest rate for the Plus Loan is fixed at 8.5 percent. Some lenders allow parents to pay only the interest while the student is in school. The repayment period extends up to 10 years. For more information visit www.parentanswer.com or call Nellie Mae at (800) 806-3672.
PAYMENT PLAN
TuitionPay
Academic Management Services (AMS) offers the TuitionPay Monthly Payment Plan. This plan allows payments to be spread over 10 months, from May to February. The cost is a $55 application fee. For more information visit the AMS website at www.tuitionpay.com.
