If you're worried about paying for college, don't forget to explore the many loan programs that are available to you. Each program has its own set of eligibility requirements, so make sure to contact them directly to find out how they best suit your needs. Options include:
The Educational Resources Institute (TERI) Loans
TERI Loans are available to undergraduates through local designated banks. You qualify if you are:
- An undergraduate student 18 years of age or older in a degree or certificate program
- Enrolled at least half-time as determined by your school
- Attending a TERI-approved school
- Making satisfactory academic progress as determined by your school
- Meeting the credit guidelines below:
(A coapplicant is typically required)
- A satisfactory credit history, residence and employment history of at least two years
- Income sufficient to make required payments
- If self-employed, to have been in business for at least two years
- To be a U.S. citizen or permanent resident and have resided in the U.S. for the previous two years
- An international student with a U.S. citizen or permanent resident coapplicant.
- To apply or for more details, call TERI directly at 1-800-255-8374.
College Board
College Board offers The Signature Loan to help cover the cost of your children's education.
- Private loan program
- Covers whatever is not covered by student financial aid in the cost of attendance
- To apply or for more details, call College Board directly at 1-800-831-5626.
Key education resources
Key is an organization that offers a variety of specialized loans to help students finance their education. These include:
- Supplemental loans for students
- Loans for parents looking to finance both college and preparatory programs
- Loans awarded to adult students enrolled in part-time programs
- Interest-free budgeting plans
- Graduate student loans
- Key can be contacted at 1-800-KEY-LEND for details.
Sallie Mae and Nellie Mae
The Student Loan Marketing Association, or Sallie Mae, corporation is a government-sponsored entity that, with its subsidiaries, provides funding and other educational resources to qualified recipients.
- Sallie Mae provides funds for educational loans -- primarily federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP).
- The organization operates in conjunction with it's subsidiary, Nellie Mae.
- For more information, check out their Web sites at www.salliemae.com and www.nelliemae.com.
ConSern
ConSern offers education loans through employers that have adopted its program.
- You'll need to contact your human resources department to find out if this service is available to you.
Perkins Loans
Perkins Loans are loans granted to lower-income students only.
- Students may borrow up to $4,000 each year as undergraduates and up to $6,000 as graduate students.
- Students have nine months grace period after graduation before they must begin repayment. The balance must typically be paid within ten years from this date.
- To apply or for more information, please contact the financial aid office at the college that you or your child wishes to attend.
PLUS Loans
Unlike Perkins Loans, Parent Loans to Undergraduate Students, or PLUS, loans are awarded to parents rather than students.
- Parents who have acceptable credit are allowed to borrow an unlimited amount to fund their children's education as long as the amount of the loan does not exceed the cost of tuition.
- Repayment must begin within sixty days of receiving the funds and be complete in five to ten years.
- Lenders include banks, credit unions, and other financial institutions.
- To apply or for more information, please contact the U.S. Department of Education Office of Student Financial Assistance at 1-800-433-3243 or visit its Web site at www.fafsa.ed.gov.
College loans
If the federal and private programs we've discussed are not what you are looking for, you do have one more place to look for a loan that suits your needs.
- Many colleges and universities offer loans themselves. These vary considerably from institution to institution, so you should contact the school's financial aid office for details.
- Some are "need blind": check each school's financial aid policy.
Continue to: Part V – Government-sponsored funding
Budgeting