Other Loans
Federal PLUS Loan for parents
Parents may borrow up to the cost of attendance minus any other financial aid awarded. The parent must receive credit approval for the PLUS Loan and sometimes may be approved with a credit-worthy endorser. The interest rate of the PLUS Loan is fixed at 8.5%. Repayment begins 45 days after full disbursement of the loan which typically occurs in January when the loan period is for the full academic year. (Fall semester only loans are typically fully disbursed in August). Parents are encouraged to evaluate different lenders in order to determine the most appropriate benefits.
Alternative Student Loans
It is estimated that there are over 200 alternative (also referred to as private) student loan programs in existence. The Signature Student Loan by Sallie Mae is a common example of one of these loan programs. The Signature Student Loan by Sallie Mae provides a resource for students needing to borrow additional funds to cover the cost of education. Repayment of the Signature Loan is deferred while a student maintains at least half-time enrollment (6 credit hours or more) and during the 6 month grace period. The interest rate is variable and is typically based upon the prime rate (plus or minus a rate based upon the student or co-borrower's credit rating) as published by the Wall Street Journal. First year students are required to have co-borrowers, while upper-class students may receive credit-approval without a co-borrower. It is strongly suggested that all students apply with a co-borrower in order to receive the lowest possible interest rate.
While many students have borrowed through this program Gordon College suggests that students and parents review all terms and conditions of any private student loan before borrowing. Some key items to be aware of include: interest rate and how it is calculated, repayment terms, potential for deferral for graduate school, and the possibility of repayment beginning during a delay in enrollment. Some students have found it advantageous to keep their alternative loan with the same lender as their Stafford loan. We have listed some of the alternative student loans that are most commonly used in other years on the Alternative Loans page.