Private Loans and Alternative Sources of Financial Aid
Free Application for Federal Student Aid (FAFSA)
The Free Application for Federal Student Aid, better known as the FAFSA, is the first step to determining a student's federal, state, and institutional financial aid eligibility. Students should submit the FAFSA as soon after January 1 as possible to increase the chances of receiving the aid you need. You will need both your parents' and your tax information from the previous year to complete the FAFSA. The schools you indicate on your FAFSA will also get a copy of the application. Elms College's School code is 002140.
Federal Direct Subsidized Loans
The Federal Direct Subsidized Loan is available to undergraduate students and requires repayment. Students must enroll for a minimum of six (6) credit hours per term to be eligible. Eligibility is determined by a student's financial need as determined by the FAFSA form. During periods of enrollment or deferment, the federal government pays the interest on Subsidized Stafford loans. The interest rate is currently fixed at 3.4% for subsidized. Interest paid may be tax deductible. For the 2012-2013 award year, the interest is scheduled to increase to 6.8%. As of July 1, 2012, graduate students are no longer eligible to receive Direct Subsidized Loans.
Required documentation: Master Promissory Note and Entrance Counseling
Federal Unsubsidized Direct Loans
This program is similar to the Federal Direct Subsidized Loan. However, the government does not pay the interest during periods of enrollment or deferment, and is not based on need. The current interest rate for Direct Unsubsidized Loans is 6.8%. The Student Financial Aid Services Office strongly recommends students pay the interest on Direct Unsubsidized Loans while in school or in deferment.
Required documentation: Master Promissory Note and Entrance Counseling
Federal Perkins Loan
Perkins loans are low-interest rate loans (currently 5%) awarded to undergraduate students. Elms College does not award Federal Perkins Loans to students enrolled in their first year. Students must sign a master promissory note and successfully complete Perkins entrance counseling. In addition, students awarded a Federal Perkins Loan will need to sign a truth in lending disclosure each year they receive the loan. At Elms College, the Federal Perkins Loan is considered a supplemental loan. Therefore, your Perkins loan will be cancelled if you decline the Federal Stafford/Direct Loan. Funds are limited.
Direct Parent PLUS Loan
Direct Parent PLUS loans are available to parents of dependent students who have good credit history. Parents may borrow the full cost of education minus any financial aid received. The current interest rate for the Direct Parent PLUS Loan is 7.9%. Interest paid may be tax deductible. Parent must complete the Parent PLUS Loan credit check online by going to www.studentloans.gov. When selecting the school on the application, please select College of Our Lady of the Elms.
Alternative Loans
Alternative loan programs are available to parents or students with creditworthy cosigners. Dependent students should always secure a creditworthy cosigner, even if the bank does not require one, in order to receive a better interest rate. The Student Financial Aid Services Office strongly recommends students pay the interest on Alternative Loans while in school or in deferment.
Elms College provides a central location to apply for alternative loans through Elm Resources. Elms College does not in any way endorse a specific lender and receives no compensation for providing this information. As always, Elms College encourages parents and students to find a lender that meets their financial situation and needs.