Student Federal Loans
Stafford Loan
The Stafford Loan program is a federally funded loan program. The maximum loan amount varies depending on your year in school. Repayment of the Stafford Loan begins 6 months after the student graduates, withdraws from school or is enrolled less than half-time. Application for the Stafford Loan is made by completing the FAFSA. First-time borrowers must complete a Stafford Loan Master Promissory Note (MPN) and a Stafford Loan Entrance Counseling form.
Subsidized and Unsubsidized
There are two types of Stafford Loans, the Subsidized Stafford Loan and the Unsubsidized Stafford Loan. The Federal Subsidized Stafford Loan is awarded based on demonstrated financial need. The interest rate is fixed at 6.0%. The federal government will pay the interest on a Subsidized Stafford Loan while the eligible student is enrolled in school at least half-time. The Federal Unsubsidized Stafford Loan is awarded to students who do not demonstrate financial need. The interest rate is fixed at 6.8%. The student is responsible for the interest on the Unsubsidized Stafford Loan while in school. The student has the option of making quarterly interest payments on the Unsubsidized Stafford Loan while in school or deferring the interest until repayment. Additional Unsubsidized Stafford Loans are available to students whose parents are ineligible to borrow a Parent PLUS loan. First- and second-year dependent undergraduate students whose parents have been denied a Parent PLUS Loan could receive up to $4,000 in additional Unsubsidized Stafford Loan money; third-, fourth- and fifth-year students could receive an additional $5,000 in Unsubsidized Stafford Loan money.
Stafford MPN
First-time Stafford Loan borrowers must complete a Stafford Loan Master Promissory Note (MPN). By completing the promissory note, the student is agreeing to repay the loan. After the Financial Aid Office certifies the Stafford Loan, the student will receive an email or letter from American Student Assistance (ASA) directing them to go online to complete the MPN (using the FAFSA pin number for the electronic signature.) You may also use the above link to complete the MPN.
Stafford Entrance Counseling
First-time Stafford borrowers must complete a Stafford Loan Entrance Counseling session. Entrance counseling sessions for incoming freshmen are held during Orientation. The Entrance Counseling session, also known as the Entrance Interview, explains the student's rights and responsibilities as a Stafford Loan borrower. If you missed your in-person entrance counseling interview, you may complete this requirement by using this link.
Parent Federal Loan
Federal PLUS Loan
PLUS Loans are federally sponsored loans for credit-worthy parents of dependent undergraduate students. The interest rate is fixed at 8.5%. Repayment begins immediately after the second disbursement of the loan. Parents may borrow up to the cost of attendance less other financial aid. You may apply for a PLUS Loan on-line at www.amsa.com/direct or by using the above link.
Alternative Education Loans
An alternative education loan is not a Federal Stafford Loan. It is an education loan funded by a private company. It is advisable to apply for a Stafford Loan before borrowing through an alternative education loan program. Generally, an undergraduate student needs a credit-worthy co-signer when applying for a loan. Following is a list of some of the alternative education loans:
CitiAssist Loan
Key Alternative Loan
Chase Select Loan
Wachovia Education Loan
Financing Options
Tuition Management Systems
Nichols College participates in monthly tuition payment plans through Tuition Management Systems. A monthly payment plan helps to stretch your remaining balance over time. The enrollment fee is $60 and there is no interest. You may use the payment plan in conjunction with student and parent loans. Please contact TMS at 1-888-216-4258 for more information.
Outside Scholarships
It is not advisable to pay any company to assist you with scholarship searches or assistance with completion of financial aid applications. These services can usually be obtained free of charge. We recommend the following searches on the Internet:
For additional help with applying for scholarships, you may visit the following websites www.scholarshiphelp.org; www.finaid.org and www.fastweb.com
You may also look for scholarships by visiting your local library. Ask the librarian for assistance. Remember, every little bit helps. Good Luck!