Education loans are an effective way for students and parent to finance education costs - they permit families to spread education expenses over time so the amount paid each month is more manageable. Different options are available, depending upon whether the student qualifies for or is receiving other types of financial aid.
Student Loans Based on Need
Student Loans Not Based on Need
Parent Loans
- Federal PLUS Loan for Parents - parents without an adverse credit history may borrow up to the full cost of education minus financial aid received (including student loans).
Loan Fees and Disbursements
Federal education loans are subject to origination and default fees which are deducted by the lender from each disbursement. This means that the net amount of any loan disbursed to Bates may be less than the total amount borrowed. For 2009-2010, Stafford Loan borrowers may be charged up to 1.5% of the principal amount borrowed (0.5% origination fee + 1% default fee.) PLUS Loan borrowers may be charged up to 4% of the principal amount borrowed (3% origination fee + 1% default fee.) Private/alternative loans may be subject to fees that either are deducted from loan disbursements or are added to the loan principal at repayment. Families are advised to check with their lenders for details and conditions.
Loan disbursements are credited to accounts after the start of the semester. However, as long as families provide required loan application documents by August 1, they may deduct the amount of the expected first semester disbursement (one-half the total academic year loan minus any lender fees charged) from the first semester charges due August 1.
