In addition to the student aid offered to their son or daughter, many families have questions about financing the remaining portion of their student's educational expenses. Fortunately, there are a number of options, which we have outlined below, available to assist families. Remember, no single option is the right one for everyone; each family's circumstances will determine which financing strategy is best for their individual needs.
Lawrence offers the option of interest-free monthly payment plans, allowing families to spread payments over 10 months. The payment plan enrollment fee for 2007-08 is $70 and is to be included with the first monthly payment.
Payment plans are set up by the LU Business Office. To learn more about the payment plan or to access the enrollment form, please click here.
Federal PLUS Loans are loans that parents take out to help pay for their dependent, undergraduate children's educational expenses. Parents may borrow up to the cost of attendance less any financial aid their student is receiving. PLUS loans do require a credit check.
Lawrence University participates in both the William D. Ford Federal Direct PLUS Program and the Federal Family Educational Loan (FFEL) PLUS Program. Eligibility rules are identical under both programs, but repayment plans differ somewhat. The main difference, however, is that FFEL funds come from private lenders (i.e. banks, credit unions) whereas Direct Loan funds come from the federal government. The funds for both types of PLUS Loans are delivered directly to Lawrence and applied to the student's account.
Interest
Interest is charged from the date the first disbursement is made until the
loan is paid in full. Interest rates for PLUS Loans are at a fixed rate as follows:
Direct PLUS Loans 7.9%
FFELP PLUS Loans 8.5%
Fees
Parents will pay a fee of up to 4% of the total loan amount. The actual
fee varies by lender and can be included in the amount of loan borrowed.
Repayment
Repayment on PLUS Loans begin within 60 days of the final disbursement of
the loan, although many lenders offer programs where interest only payments
can be made while the student is in school. Repayment is based on a 10
year repayment period, but may be extended based on the amount borrowed.
If you wish to apply for a PLUS loan, you must first choose a lender. We have provided a list of lenders that we feel offer excellent customer service and competitive incentives and repayment benefits. Please select a link below to review your lender options & apply.
Private Educational Loans (also known as Alternative Loans) are loans through a lending institution and are not part of the federal government programs. Private educational loans are more expensive than federal government guaranteed loans and should only be used when all other options have been exhausted. Research all possibilities for scholarships, grants, work-study, and federal loan programs before borrowing from an alternative loan program. We have provided a few links to help you get started in researching private loan options. Choose the loan that best suits your needs and remember to borrow only what you need!
Private Educational Loan information on finaid.org