Education loans help students and parents finance education costs over time, making payments more manageable.
Different options are available for students and parents, depending upon whether the student qualifies for or is receiving other types of financial aid. Bates participates in the William D. Ford Direct Loan Program.
Loans Based on Need
- Direct Subsidized Student Loan — students must apply for federal financial aid and meet financial need guidelines in order to receive this type of loan. No interest is charged while a student is in school at least half-time and during deferment periods.
Loans Not Based on Need
- Direct Unsubsidized Student Loan — students who are ineligible for a subsidized loan (or whose parents have been denied a PLUS loan) may take out this type of loan. Interest is charged during all periods, even during the time a student is in school and during deferment periods.
- Alternative/Private Education Loans — many private lenders offer student loans with different conditions and interest rates.
- Federal Direct 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 fees that are deducted at the time of disbursement. This means that the net amount of any loan disbursed to Bates may be less than the total amount borrowed. Stafford Loan borrowers are charged an origination fee of 1.057%. PLUS Loan borrowers are charged an origination fee of 4.228%. Private/alternative loans may be subject to fees that either are deducted from loan disbursements or are added to the loan principal at repayment.
Loan disbursements are credited to accounts after the start of the semester. Families who have provided required loan application documents by August 1 may deduct the amount of the expected first semester disbursement (one-half the total academic year loan minus origination fees charged) from the first semester charges due August 1.