If you will need additional funding to cover a balance please try to secure these funds A.S.A.P. to ensure there are no delays in paying your Fall 2012 balance by September 17th. Approximate processing time for a Federal Direct PLUS Loan completed online and signed electronically is 3-4 days, while processing of a private student loan can take up to 30 days.
Federal Direct PLUS Loan: This loan is for the parent of a dependent, undergraduate student. Interest accrues upon disbursement at a rate of 7.9% (fixed). Parents can choose to defer payment on this loan until after their student graduates (or drops below half-time status). The Direct PLUS Loan is in the parent’s name only and cannot be transferred to the student’s name. The parent is the only person responsible for the repayment of this loan. A parent interested in borrowing this loan should apply online at www.studentloans.gov.
Private/alternative student loans: Private student loans are borrowed in the student’s name with a parent (or relative or friend) as the student’s co-signer. Interest accrues on private loans upon disbursement but, unlike the Direct PLUS Loan, interest rates vary quarterly (or even monthly), have no interest rate cap and may have loan fees up to 6%. Some private loan lenders do offer a fixed interest rate option but this is not common.
Visit our Alternative Loans page for more information on private student loans. For the 2012-2013 school year, MSOE recommends 4 different private loans: Sallie Mae Smart Option Student Loan, Union Federal Private Student Loan, Wells Fargo Collegiate Loan and Charter One TruFit Student Loan.