Understanding private loan options for students and their parents
Where students should start: Government loans
How a student applies
Who can get them
How much a student can get
Then fill in the gaps: Laurel Collegiate private loans
When it's smart money
How you apply
Who can get them
How much a student can get
Before Laurel Collegiate private loans, start with government loans
Loans like Perkins, Stafford and PLUS usually charge lower interest rates, and allow you to lock in fixed interest rates. To be considered for these loans or any type of institutional financial aid, submit the Free Application for Federal Student Aid application (FAFSA) sometime between January 1 and June 30, in advance of the academic year.
The FAFSA is used by virtually every two- and four-year college, university and career school for the awarding of federal student aid. The form may be submitted online at www.fafsa.ed.gov or by completing the paper form.
Be sure to fill out the FAFSA carefully; mistakes could mean a missed deadline. You will get some indication of how much federal aid you can receive in about four to six weeks.
Everyone is eligible
All college-bound students are eligible for federal loans. The loan amount will depend on factors like family income, number of dependents in the family, the student’s ability to demonstrate financial hardship. The financial aid office at your child’s school will use these factors and your Expected Family Contribution (EFC) to determine his or her eligibility to receive financial aid.
How much a student can get
Many government loan programs use an "Expected Family Contribution" to determine if your child qualifies for aid. Expected Family Contribution is determined from the information you and your child provide in the FAFSA. The EFC calculates how much money you and your child are expected to contribute toward the cost of attendance for the school year. If your child’s EFC is below a certain number, your child will be eligible for a Federal Pell Grant, assuming your child meets all other eligibility requirements.
Many federal loans also have annual borrowing limits. For example, with a federal Perkins loan, undergraduates can get a maximum of $4,000 a year, and graduates $6,000 a year. See more federal loan limit examples.
A Laurel Collegiate Loan is the smart way to fill the gap
If you and your child are caught between soaring college costs and limited aid programs, then a Laurel Collegiate Loan is a great solution. It fills the gap between what you have and what you need.
The Laurel Collegiate Loan is a practical choice for parents who want to help financially, but can’t afford the penalties of taking funds from their 401(k)s or other retirement plans, who don’t feel comfortable taking out a home equity loan, and who don’t want their kids to get buried by high-interest credit card debt.
Laurel Collegiate Loans have surprisingly competitive interest rates. And undergraduates have a choice of repayment options: delay repayment while still in school for up to five years; save on fees by making interest-only payments while in school; or start making full payments right away to save the most over the life of the loan.
How your child can apply
There are no financial aid forms. Simply apply online, right now.
A Laurel Collegiate Loan is a private loan — which means it comes from a trusted private financial institution, not the government.
The application can take as little as 15 minutes from start to finish.
Who can get a Laurel Collegiate Loan
Laurel Collegiate Loan are credit-based loans. The rules are straightforward, and our basic eligibility requirements are what you'd expect.
You can use a Laurel Collegiate Loan with or without a federal loan. Private loans are available to most students, and having a parent (or another creditworthy adult) as a co-signer will increase the likelihood of approval.
How much your child can get
You and your child decide how much is needed to supplement your child’s federal loan. Undergraduates and graduates can borrow from $1,500 up to the lesser of $40,000 or the estimated cost of the school program.1 A Laurel Collegiate Loan will be based on financial creditworthiness, but applicants should borrow an amount that appropriately matches the actual school expenses when federal loans are not sufficient to cover the full cost of education.
Don’t forget to think about all the costs of going to college, not just tuition: travel home, room and board, books, essential computer equipment, athletic fees, and study abroad programs. A Laurel Collegiate Loan can be used for any of these education-related expenses, and more. Best of all, a check can be mailed to your child in as little as 5 business days.
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