FEDERAL UNSUBSIDIZED STAFFORD LOAN

Unsubsidized Stafford loans are available to students (U.S. citizens and eligible non-citizens) who do not demonstrate financial need. To be eligible, students must complete the Free Application for Federal Student Aid (FAFSA). Students are responsible for paying the interest that accrues on the loan from the time the loan is disbursed until it is paid in full. Or, students may allow the interest to accrue and have the interest added to the principal amount of the loan (capitalized) at repayment. The Unsubsidized Stafford loan has a fixed rate of 6.8% with flexible repayment terms. You can find more detailed information about Unsubidized Stafford loans here. You can begin the applications process here.

FEDERAL PLUS LOANS

Parent Loans for Undergraduate Students (PLUS Loans) are federally funded loans made available to parents (and stepparents listed on the FAFSA) to assist with meeting their family contribution. PLUS Loans are low interest rate loans that allow parents to annually fund the entire cost of their dependent, undergraduate student’s education (less any scholarships or financial aid). The educational expenses that can be financed with a PLUS Loan include tuition, fees, room and board, books, supplies, transportation and personal expenses. PLUS Loans are not based on income or assets and PLUS borrowers do not need collateral. PLUS Loans have a fixed interest rate of 8.5% and have up to a 10 year repayment schedule with no penalty for pre-payment. Interest may be tax deductible for families who fall within certain income levels. You can find more detailed information about PLUS loans here. You can begin the applications process here.

MINNESOTA SELF LOAN PROGRAM

The Student Educational Loan Fund (SELF) Program is an educational loan provided by the Minnesota Office of Higher Education and is available to Minnesota residents attending eligible postsecondary schools or non Minnesota residents attending eligible schools in Minnesota.

Students may borrow up to $7,500 per year. Quarterly interest payments are required.

As of October 1, 2009 the interest rate was 3.9%. Interest is based on the three month LIBOR (London Interbank Offered Rates) plus a margin, which is currently 3.5%. The interest rate will vary quarterly throughout the life of the loan. There are no origination or repayment fees. You can find more detailed information about the SELF Loan here. You can begin the application process here.

ALTERNATIVE LOANS

Private alternative loans provide another way to help students realize a Carleton education. There are many different alternative loans available to students through a variety of lenders. There have been an increasing number of students using alternative loans in the past few years. However, alternative loans are less regulated by the government and more prone to abuse by lenders dealing with financially strapped students who may not have many other options (including parent unwilling to contribute) for financing college. So, before applying for any loan, be sure you understand the repayment terms, conditions, and payment amounts. The payment amount is affected by the interest rate, the amount borrowed and the length of repayment.

As a service to our students, Carleton's Student Financial Services Office evaluated a number of lenders and determined the lenders on the Carleton Alternative Lender List as offering good terms. Carleton does not endorse any particular lender(s) and receives no benefits from the lenders listed.

If you are interested in exploring alternative loans other than the ones listed on Carleton's Alternative Lender List, you can also search the Greentree Gazette or Student Lending Analytics Alternative Loan Options websites for other alternative loan options. Carleton does not endorse any lender and provides these links only as a courtesy for our students. As with any borrowing decision, make sure you understand all the loan terms before signing.

You can also find a useful calculator to calculate monthly payments and determine the cost of your loan at http://www.finaid.org/.