In some cases, students may need to borrow loans to help meet their educational costs. Loans are a form of financial aid that must be repaid. Source of loans may be either federal or private, rates and payment terms can vary. Both student and parents may apply for these loans.
If you and/or your parent(s) borrow from one or more of the Federal loan programs, information regarding your Federal loans will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guarantee agencies, lenders and institutions determined to be authorized users of the data system.
Please review the information on student, parent and private education loans.
The U.S. Department of Education offers affordable fixed interest rate loans to students and parents through the Federal Direct Loan Program. Students are required to file the FAFSA to determine eligibility. Disbursements are applied directly to your student account at Peabody within 10 days of the start of the semester upon completion of a promissory note and entrance counseling. A small origination fee equal to a percentage of the loan principal will be deducted from the proceeds and reduce the amount of your disbursement. Peabody participates in the following Direct Loan Programs:
For more information about the Federal Direct Loan Program, including borrowing limits, interest rates & calculators, repayment plans, deferment and consolidation, please visit the Department of Education’s Direct Loan webpage at https://studentaid.gov/understand-aid/types/loans/interest-rates.
**Beginning June 14, 2017**
Graduate students and parents of dependent undergraduate students can complete the PLUS loan process by following the instructions below. PLUS loan amounts may not exceed the cost of attendance for the academic year less any financial aid the student is eligible to receive. Students must be considered for their full eligibility under the Federal Direct Loan program before a PLUS loan will be certified.
All PLUS Applicants:
Go to https://studentloans.gov .
The PLITT Loan Fund is available to parents to help families pay educational expenses over an extended period of time at a low 5.82% interest rate. This fund was specifically designed to help parents of full-time undergraduates pay for college in regular installments, over an extended period of time, at a lower than usual interest rate. Parents cannot have an adverse credit history. Eligibility is established by Peabody after a review of the loan application form. In general, parents are eligible if combined annual adjusted gross income is between $30,000 and $150,000. For additional information, please contact the Peabody Financial Aid Office at 667-208-6590.
Some states offer educational loan programs to residents of that state with interest rates and repayment terms that are equal to or better than the federal student and parent loans. We recommend that students and parents check with their state higher education agencies about the availability of these loans.
Private banks also offer loan programs for educational costs. For most of these loans, the student is the borrower with the parent as a cosigner. Interest rates generally are variable. Peabody recommends that students exhaust their eligibility for federal loans before considering private loan programs. If you are uncertain about your eligibility for federal loans, please contact the Financial Aid Office prior to initiating a private loan application.
For state or private loans, the borrowing limit is the total cost of education for the academic year (as defined by Peabody) less any other financial assistance received.
Peabody does not endorse or recommend any lender, nor does Peabody have any financial interest in any lending institution. Students and their families have the right to select the educational loan provider of their choice. Additional information on factors to consider when securing a private loan is available below.
— From the Project on Student Debt
For more information on comparing lender benefits, questions to ask when considering a private loan, and more see the following website.