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One financing option available to Smith College Parents is the Federal Parent PLUS Loan for undergraduate students. This website is designed to direct you to several lenders with whom Smith College works closely. The lenders below have been chosen based upon several factors including, but not limited to – interest rate, potential cost saving programs, lender stability and customer service. Smith College is providing this information as a service to its students and families. You are not required to choose from the lenders listed below.
The benefits below are provided only to serve as a guide. You are encouraged to review the terms to see which program may best serve your borrowing needs. All PLUS loans need to be certified by our office. Applications can be submitted online or by phone. All lenders involved with the PLUS program will contact Smith College to certify the loan once you submit the completed application.
All PLUS loans carry a 3% Origination Fee and 1% Default Fee. The PLUS loan interest rate is currently fixed at 8.5%.
Parents are eligible to borrow up to the annual cost of a student’s education minus any other financial aid awarded. The billed fees for the current year are listed at http://www.smith.edu/finaid/yearchg.php. PLUS loans can also include amounts for travel, books and supplies, loan fees and personal expenses. Individual student budgets vary based on the travel allowance provided and student housing.
Sample Budget for 2008-2009:
Fees |
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Books & Supplies |
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800 |
Loan Fees |
|
28 |
Transportation |
|
200 |
Health Insurance* |
|
2,054 |
Personal Expenses |
|
1,120 |
Room & Board |
|
12,050 |
Tuition |
|
35,810 |
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Total |
$52,310 |
*The health insurance charge can be waived by completing the required Health Insurance Decision Form.
Example - School Certification of Eligibility:
Estimated Cost of Attendance $52,310
Financial Aid Awarded - $21,000 (includes grants, loan and job)
PLUS Loan Eligibility = $31,310 plus 4% fee** = $32,562 (maximum loan amount)
** You have the option to add the 3% Origination Fee and 1% Default Fee to the requested loan amount.
Repayment Options:
Standard repayment – up to 10 years Graduated repayment Extended repayment for qualified borrowers Possible deferment of principal and interest payments (check with lender on availability)
Academic Year 2008-2009 Standard Parent PLUS Loan Borrower Benefits
Important: The benefits below were current as of 7/25/08 and are subject to change. Please consult with each lender for current benefit programs.
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PLUS Loan Repayment Benefits
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Application Information
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AMS |
0.25 percentage point interest rate reduction for automatic debit**
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Apply online
Contact Information:
1-800-891-1410
General information
AMS Web site |
| Citibank |
0.25 percentage point interest rate reduction for automatic debit |
Apply online
Contact Information:
1-800-788-3368
General information
Citibank Web site |
Citizens Bank |
0.25 percentage point interest rate reduction for automatic debit* |
Apply online
Contact Information:
1-800-891-1410
General information
Citizens Bank Web site |
| Key Education Services |
0.25 percentage point interest rate reduction for automatic debit |
Apply online
Contact Information:
1-800-539-5363
General information
Key Bank Web site |
Nellie Mae |
0.25 percentage point interest rate reduction after the 1st on time payment**
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Apply online
Contact Information:
1-800-891-1410
General information
Nellie Mae Web site |
| Wachovia |
0.25 percentage point interest rate reduction for automatic debit |
Apply online
Contact Information:
1-800-338-2243
General information
Wachovia Web site |
The programs and benefits listed above are meant to serve as a guide in helping you choose a PLUS loan lender. You are encouraged to visit the lender websites for additional information about their programs. Smith College does not receive any incentives for listing these lenders, or from your choosing to borrow through them. Smith College will not impose any penalties or delays in loan processing if you choose a lender other than the ones listed above. We encourage you to review these and any other PLUS loan lender to find the program that best fits your needs.
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* Must enroll in automatic payment deduction from any bank. This benefit will be lost if there are three (3) non-sufficient funds within a 12 month period.
** Must enroll in automatic payment deduction from checking or savings account to cover monthly educational loan payments. As long as Sallie Mae remains the servicer of this loan, and the borrower's monthly payment is successfully deducted from the borrower's account, this benefit will remain in effect.
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