There are several resources that a family may use to help pay for the difference between the cost of college and the available financial aid.
Federal Direct Parent Loan for Undergraduate Students (PLUS) - Recommended
A Federal Direct PLUS loan enables a parent with a good credit history to borrow money for their dependent student's education. If approved, the amount applied for, less a 4% origination fee, will be disbursed directly to the College. Repayment of principal and interest begins 60 days after the full amount of the PLUS loan has been disbursed or can be deferred
. In order to apply for a PLUS, the student must have on file a valid FAFSA for the year funds are being requested. Additional information regarding the PLUS loan is available at http://www2.ed.gov/offices/OSFAP/DirectLoan/parent.html
Applying for the Federal Direct PLUS loan is completed at www.studentloans.gov
. When applying for the loan, the parent will receive a credit decision, complete the electronic Master Promissory Note and indicate the amount to be borrowed. The parent will need his/her PIN used to sign the FAFSA to sign the loan application electronically. If the parent applying for the PLUS did not sign the FAFSA application, a PIN can be obtained from http://www.pin.ed.gov/
. When completing the amount to be borrowed section, please note that most loans are borrowed for the full academic year, not by semester. Please call our office at 1-800-654-3210 or 315-655-7887 if you have any questions or need assistance with calculating the loan amount to borrow.
Here's an example of how to determine the amount to apply for in the PLUS:
(Requested amount - net amount divided by .957 = gross amount. Example: owe $15,000 divided by .957 - this amount includes the 4.204% origination fee. Net amount is applied to the student account.)
TuitionPay Monthly Plan
Cazenovia College offers the TuitionPay Plan. This plan allows families to spread their payments over 10 months, interest free, and requires an annual $55 enrollment fee. For additional information, please call our Student Accounts Office at 1-800-654-3210 (or 315-655-7889) or online at the TuitionPay website
Private Education Loans
We recommend that the student and family review the borrowing options through the Federal loan programs first and then consider the private loan options as an alternative. To begin the Federal loan process, please call the Financial Aid Office at 315-655-7887 or 1-800-654-3210 or visit www.fafsa.gov
Private education loans are funded by private lending institutions and require a separate loan application, which usually can be completed online. Most private loans have variable interest rates based on a borrower's and co-borrower’s credit history and begin to accrue interest immediately. Some lenders may require payments while the student is enrolled. Loan amounts are limited to the total cost of attendance as determined by the Financial Aid Office, less any financial assistance received. Some private lenders also limit the cumulative borrowing for a student which may affect the amount the student is qualified to borrow annually.
Private Education Loan Options