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.
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
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
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
Private Student Loans, also known as Alternative loans, should always be your last consideration for financing your education. Almost all private loan lenders now offer you choice of fixed or variable interest rates as well as a variety of repayment plans. Recently private loans have become more difficult to obtain and in most cases students will require a creditworthy cosigner. Be sure that you and your cosigner fully understand the terms and conditions of the loan before signing the promissory note and accepting the loan offer. For a list of all available private student loans please contact or email our office.
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