Loan and Financing Options

Loan & Financing Options
When considering which loan to use to assist in paying for college, Lasell College recommends that all students complete the Free Application for Federal Financial Aid and apply for need based aid, and the Federal Stafford loan first, before pursuing any other more expensive loan options.

Federal Stafford Loan: This loan will be included in all award packages for students who go through the application process. The amounts are limited by the class year of the student:

 

Freshman (0 - 29 credits earned) $5500 (max. subsidized $3500)
Sophomore (30 - 59 credits earned) $6500 (max. subsidized $4500)
Junior (60 - 89 credits earned) $7500 (max. subsidized $5500)
Senior (90 credits and above) $7500 (max. subsidized $5500)
Graduate students up to $20,500 if enrolled in at least 6 credits per semester, 3 credits in an 8 week session, in a degree program. Students in certificate programs are not eligible for the Direct Stafford Loan.

Approximately 67% of first time, full time students who matriculate through to graduation borrow on the Federal Direct Stafford Loan. Students who borrow the maximum amount available, and graduate within four years, can expect to borrow $27,000 in the Federal Direct Stafford Loan program.

This loan is now available only through the Federal Direct Loan Program. This loan is a STUDENT loan, and if you wish to use these funds toward your costs here at Lasell College this year, you will need to complete the Master Promissory Note (MPN) and Entrance Interview.

This Master Promissory Note is the legally binding loan document for the Stafford Loan. The student is the borrower and is the person who should complete the MPN. Parents should NOT be completing the Stafford MPN.

To complete the MPN go to www.studentloans.gov. You will need:

  • The PIN you were assigned to complete the FAFSA online. If you do not remember your pin, you can get a new one assigned to you at www.pin.ed.gov.
  • You will need about 30 minutes to complete it, and it must be completed in one session. You cannot save it and come back to it. If you do not finish it you will have to start over at some other time.
  • Permanent address, mailing address (if different from permanent address), telephone number, email address for the student borrowing the loan.
  • Employer name and address if applicable
  • School name
  • Reference information for 2 people you have known for at least 3 years. One should be a parent. For the references you will need their name, address, phone number and relationship status to the student borrower.

Students who are borrowing on the Stafford Loan program for the first time, also need to complete the Stafford Loan Entrance interview online at www.studentloans.gov This takes approximately 20 minutes and the financial aid office will be notified automatically when it has been successfully completed. This only needs to be done once as an incoming student.

 

Student Loan Debt:

For the students who began as first time, full time students at Lasell College, who graduated from the college between July 1, 2009 and June 30, 2010, the average indebtedness or average total amount of loans borrowed by a student while at Lasell College was $36,720.

Federal Direct Parent Loans for Undergraduate Students (PLUS): This loan is available for parents to borrow to cover some or all of the out of pocket expenses for the year not covered by other financial aid being received by the student.

 

This is a credit based loan, and a parent begins the process by applying at www.studentloans.gov. You will need the pin you used to sign the Free Application for Federal Student Aid (FAFSA). If you do not have a pin or have forgotten yours, you may get one assigned to you by first going to www.pin.ed.gov and requesting one. Once you have the pin, you may proceed with the application process. It takes approximately 24 hours for the credit decision to be processed. If approved, our office will be notified and we will add the loan to the students' package.

If you are denied the Direct PLUS loan, you may appeal that decision, apply with an endorser or do nothing. If you choose not to appeal or apply with an endorser, your student will be eligible for additional Direct Unsubsidized Stafford loan funding.

We highly recommend applying for enough to cover the cost of attendance for the full year. If you need assistance determining the amount to borrow, we recommend you contact Student Accounts at 617-243-2103.

Private/Alternative loans for students: These loans are usually borrowed in the students' name with someone as a cosigner. The amount is limited to the cost of attendance less the other aid a student is receiving. To research the loans, the lenders available and to begin the application process for a loan, we recommend you research the education loan options by going to https://www.elmselect.com/oll/SchoolLenderList/?schoolId=8637 ELM Select. You will be able to research the lenders who offer private education loans, and follow the links to the lenders' websites to complete the application online.  We require that the application be completed and approved before we will add this loan to the award package and allow it to appear as a credit on the student's bill.

We highly recommend applying for enough to cover the cost of attendance for the full year. If you need assistance determining the amount to borrow, we recommend you contact Student Accounts at 617-243-2103.

A note about our preferred lender list:
Lasell College has selected ELM Select to present information regarding private loan lenders. Any lender with whom our students have previously borrowed, or who has provided their information to us to be listed appears on this list. We will process the application for a private student loan from any lender you choose. We are refering you to the ELM Select website for informational purposes only.

Application Timeline:
Stafford Loan Master Promissory Note and Entrance interview for new students: After May 1, 2013
Parent loans for new or returning students: After May 1, 2013
Private Student Loans for new or returning students: After May 1, 2013
Monthly Payment Plan: Set up payments for the 10 month plan beginning in June by going to www.afford.com/lasell

Information regarding repayment of loans: As students graduate or separate from college for other reasons, they will need to be aware of their repayment options in the Federal Stafford Loan programs. Below is a brief description of what is available. More information and guideance can be found at http://www.studentloanborrowerassistance.org/ or at http://www.nslds.ed.gov/nslds_SA/

Repayment Options

To forestall default and encourage successful loan repayment, the U.S. Department of Education offers numerous repayment options for federal student loans, including:

  • The Standard Repayment Plan breaks down your loan balance into monthly payments of at least $50 for up to 10 years. In general, this is the plan that will cost you the least amount of money in interest payments.
  • The Graduated Repayment Plan starts monthly interest payments at a lower amount, which gradually increase for up to 10 years. This plan is best for borrowers whose income may start out low but is expected to increase-but note that you will pay more in interest over time than if you selected Standard Repayment.
  • The Extended Repayment Plan allows borrowers to extend the repayment period from 10 years to up to 25 years; however, they will end up paying more in interest. This plan works best for borrowers whose loan burden is too large to bear the standard monthly payments over the course of just 10 years.
  • The Income-Based Repayment (IBR) Plan allows borrowers with a demonstrated financial hardship to limit their monthly loan payments, excluding parental PLUS loans, to 15 percent of their discretionary income (that is, the difference between their adjusted gross income and 150 percent of the poverty guideline for their individual situation). Under this plan, if the balance of the loan has not yet been paid off after 25 years, it can be forgiven. In most cases, borrowers will pay more in interest over the life of the loan. This plan is best for borrowers whose financial situation is unstable or is insufficient to bear the monthly payments under other repayment plans.
  • The Income-Contingent Repayment Plan takes into consideration annual income and family size as well as the total loan amounts. If a loan balance remains after 25 years, it may be forgiven. Unlike the IBR Plan, borrowers need not be facing financial hardship to qualify. However, they will likely pay more in interest than in other repayment plans. This plan is best for borrowers who are not facing demonstrated financial hardship, but whose financial situation is insufficient to bear the monthly payments under other repayment plans.
  • The Income-Sensitive Repayment Plan allows borrowers to pay a monthly loan amount that takes annual income into consideration. The length of the repayment period is up to 10 years, and the balance is not forgiven at the end. Like other plans, borrowers will pay more in interest over the life of the loan. This plan is best for borrowers whose financial situation may fluctuate over the course of the repayment period.

View this chart to see what your repayment plan might look like.
View more information on Default Facts and Repayment Tips.

It's important to remember that these repayment options only apply to federal loans. If you have private or alternative loans-nonfederal loans made by a lender such as a bank, credit union, state agency, or a school-be sure to check with your lender about the terms of your repayment.

Private loans are not eligible for IBR or the other federal loan payment plans, deferments, forbearances, or forgiveness programs. However, the lender may offer some type of forbearance or payment relief. Read your private loan paperwork carefully and then talk to the lender about what repayment options they may offer.

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