OFFICE OF FINANCIAL AID 198 College Hill Road Clinton, NY 13323
800-859-4413 315-859-4962 (fax)
Other Financing Options
While the financial aid package is intended to meet the demonstrated need of each family, most families must finance the "expected family contribution" over a number of months or years.
Monthly Payment Plan:
Families can spread their payments out over 10, 11 or 12 months
Consider financing through a payment plan before taking additional loans
New loan information for 2010-2011
For the 2010-2011 academic year the Financial Aid Office will change the way we process Stafford and parent PLUS Loans. Currently we participate with the Federal Family Education Loan Program (FFELP), which is a lender-based process. Effective with the 2010-2011 academic year we will participate in the Direct Lending program. We will no longer offer FFELP-based loans. With Direct Lending, the lender is the U.S. Department of Education; there are no banks or other financial institutions. Interest rates and aggregate limits will remain the same for Stafford Loans under Direct Lending. PLUS Loan borrowers will have an advantage with Direct Lending as the interest rate is lower. We are currently in the process of working with other offices on campus to implement this functionality. Additional information will be available on our web site as we work through this conversion. We appreciate your patience and welcome your questions.
Recommended Lenders
for the 2009-2010 academic year
Parent loan available to cover the difference between the cost of attendance and financial aid
8.5% fixed interest rate
Parents must initiate the borrowing process by contacting the lender of their choice directly
Origination (3%) and federal default (1%) fees may be removed prior to disbursement; check with your lender
Interest begins to accrue on the loan from the date of the first disbursement
Repayment begins within 60 days after the second disbursement of the loan
Parent can request loan deferment from the lender to postpone repayment for up to 6 months after student graduates
Borrower must be a U.S. citizen or permanent resident
Borrower must pre-qualify (pass a credit check)
If parent's credit is denied, the parent can re-apply with an endorser. As an alternative, the student is eligible to borrow an additional unsubsidized Stafford loan in the amount of $4,000 for 1st and 2nd year students, $5,000 for 3rd and 4th year students. The student must complete the appropriate section of the Stafford Loan Request Form.
Combination Plan:
Calculate the amount your family can afford to pay per month and sign-up for the monthly payment plan
Take the maximum amount of Federal Stafford Loans (subsidized and unsubsidized)
Bridge any remaining gap with a PLUS Loan and defer payments
Alternative Loan:
Students should borrow the maximum amount allowed in a Stafford Loan before an Alternative Loan
Parents should explore a PLUS Loan before an Alternative Loan
Compare rates, benefits and repayment options
Students will usually need a co-signer (i.e. parent)
Before the Financial Aid Office will certify an alternative loan, federal law mandates that we counsel a student on the benefits of federal loans over an alternative loan
Other Options (best to consult a Financial Advisor):
Home Equity Loans pro: interest is typically tax deductible; long repayment periods con: dependent on equity in home; home is collateral; may have closing costs
IRA Draws pro: early withdraws for qualified education expenses usually not subject to tax penalties con: future interest lost on investment; potentially putting retirement at risk
Life Insurance pro: usually borrowed from cash value or dividends of whole life insurance; usually low fixed interest rate con: if not repaid, reduces the investment earnings and death benefits; not usually tax deductible
Retirement Savings (401k and 403b) pro: withdraws may be allowed for qualified education expenses con: future interest lost on investment; potentially putting retirement at risk; taxed on withdrawal
Credit Cards This is not recommended. Do not finance any costs associated with college on your credit card. Educational loans offer better rates and advantages than credit cards.
A note about Hamilton's recommended lender list There are many lenders participating in the Federal Family Education Loan Program (FFELP) in which Hamilton College currently participates. You may choose to borrow from a lender of your choice. Each year, our office conducts a federally mandated review of the recommended lenders that are currently listed on our website. As part of our review, we research the benefits for borrowers, comparative rates, repayment terms and the overall quality of customer service (starting with the application process and continuing through the disbursement of funds to the college and including repayment options and terms). Based on that research, we recommend any of the lenders on this list. Neither Hamilton College nor any of its employees receive benefits from lenders due to inclusion on the list.
