Financing Options
There is no right or wrong way when it comes to financing your education and each family’s situation is unique. We invite you to read over the options below and keep in mind that you may use any combination of these options. When considering loans to finance your education you should always exhaust all federal loan options before considering a private student loan.
Federal Direct Loan (formerly Federal Stafford)
All students regardless of need are eligible to borrow the Federal Direct Loan. F&M recommends maximizing your federal loans before you consider other loan options. Federal Direct loans offer low fixed interest rates and flexible repayment terms, as well as defined terms of deferment and forbearance. To read more about Federal Direct Loans click here
Interest Rates for 2012-2013 Federal Direct Loans:
Subsidized and Unsubsidized loans fixed at 3.4%
Loan Fees: 1% deducted from loan amounts sent to school
First time Federal Direct Loan borrowers (students) are required to complete and sign a master promissory note (MPN) as well as an online loan entrance counseling session. Please log into MyAidAward and view documents to confirm you have completed both steps.
Tuition Management Services (TMS)
TMS provides a convenient 10-month payment option as an alternative to lump sum semester payments. There is a $50 enrollment fee. Sign up by May 1. For more information, please contact TMS at 1-800-722-4867 or visit their website at www.afford.com/fandm. If you have questions about the TMS process please contact the F&M Business Office at (717) 291-4213
Federal Direct PLUS Loan for Parents
The Federal Direct PLUS Loan is a federal loan program for parents borrowing to finance their dependent undergraduate student’s education. PLUS loan offers low fixed interest rates and lenders now offers a delayed repayment option. A parent can borrow up to the total cost of education minus financial aid/loans. A credit check is required each year but you only need to sign one master promissory note. For more general information on Federal Direct PLUS loan click here
Interest Rate for 2012-2013: Fixed at 7.9%
Loan Fees: 4% deducted from the loan amount sent to the school
For instructions on how to apply for a Federal Direct PLUS loan click here
Private Student Loans
Private Student Loans, also known as Alternative loans, should always be your last consideration for financing your education. The interest rates are variable rates adjusted quarterly with no cap. Some lenders recently began offering a choice of variable or fixed interest rates. Recently private loans have become more difficult to obtain and in most cases students will require a creditworthy cosigner. For a list of all available private student loans please contact or email our office.
For more information, contact or email the Financial Aid Office (717) 291-3991 .
Also, additional information and frequently asked questions about Federal loans can be found online at http://www2.ed.gov/offices/OSFAP/DirectLoan/dlq-a.html
