Families often ask us about loan options to help with college cost payments.  The preferred loan options are the Federal Stafford and Federal Perkins loans--because of their student-only assignment provisions and their low interest rates.  However, at Findlay the typical Perkins Loan generally ranges from $500 to $1,000 and assists a limited number of students.  Likewise, the Federal Stafford Loan can cover up to $5,500 (at least $2,000 will be unsubsidized) for a student's freshman year, per federal regulation.  Often, students still have remaining balances, and families seek additional loan options for those balances.
Two other education loan programs exist to assist families.  (You may, of course, consider other loan options, but these are the two primary education loan choices apart from those mentioned above.)

The first is the Federal PLUS Loan, a loan for the parent.  The loan allows the parent to borrow up to cost of education (tuition, fees, room and board, miscellaneous costs) minus the student's financial aid.  For example,if the student's cost of education is $34,000 and the aid awarded is $17,000, then the PLUS Loan may range up to $17,000; the interest rate is 8.50%.  At Findlay, the loan will be disbursed in two installments--one in late August and one in late December.  The repayment begins after the loan is fully disbursed, meaning that the borrower will go into repayment in late February or as provided by the lender.  The typical repayment period is 10 years.  You may access the on-line website by clicking the logo below (or you may opt to use some other lender not listed) :  
                                 

The second option is an alternative loan, a loan for the student but which requires a creditworthy co-borrower.  Loans may generally cover the balance after other aid is applied, and the loan repayment defers until the student is out of school.  However, interest on the loan accrues while the student is enrolled, and the interest rate generally adjusts quarterly in line with the prime rate or the LIBOR rate.  If you are considering an alternative loan you may want to contact several lenders to gain some sense of the interest rate.  The logo above will take you to a group of alternative loan choices as well, though you may still elect to use some other lender.                                        
 

Feature	Federal PLUS Loan	Private Loans*
Program Description	Federal PLUS Loans are available to parents or custodial step-parents for dependent undergraduate students attending school at least half-time and to graduate students.  PLUS loans are solely the responsibility of the  borrower.	Private loans are generally available to undergraduate and graduate students enrolled at least half-time.  The loan is primarily the responsibility of the student, although a credit-worthy cosigner is usually expected to sign the promissory note as well.
Eligibility	PLUS loans are not dependent on famly income or assets, and no collateral or cosigner is required.  Borrower must, however meet certain credit criteria.	Terms vary by lender, most of whom use credit scores or debt-to-income ratios to determine creditworthiness, interest rates, and fees.  International students may usually  borrow with a creditworthy U.S. citizen cosigner
Interest Rate	Fixed at 8.50%	Variable rate typically adjusted quarterly, based on Prime or LIBOR ** rate, and is not capped.
Loan Limits	Up to full cost of education minus any other financial aid received.	Most program allow borrowing up to cost of education minus any financial aid received.
Fees	A 4% federal origination fee/insurance premium may be deducted from the loan proceeds prior to disbursement.	Fees vary among lenders, and may go up to 9%.  Often, fees will be determined in part by measure of creditworthiness.
Repayment Terms and Plans	Repayment typically begins within 60 days after the full disbursement of the loan for the academic year.  Repayment term is 10 years, and there are no prepayment penalties.  Graduated repayment or extended terms may be available if you qualify.	Repayment plans vary by lender and may begin immediately or be deferred until six months after student ceases half-time enrollment.  Students may select from several repayment plans, and most lenders allow prepayment and early payoff without penalty.
Deferments	You may qualify for deferment if legitimate circumstances seriously affect your ability to repay the loan.  Loan(s) can be cancelled in the event of total disability or death.	Payments may generally defer while a student is enrolled at least half-time.  Loan cancellation due to disability or death is generally not available without purchase of an additional option.

*Programs vary by lender
**London Interbank Offered Rate