Student loans may be a source of funding for your college education. There are a variety of student loan options for you to consider. The biggest difference between loans and other forms of funding is that you are required to pay loans back, as well as accumulated interest. Pine Manor College is a full participant in the William D. Ford Federal Direct Loan Program
Federal Direct Loans
Direct Stafford Loan
Direct Stafford Loans, from the William D. Ford Federal Direct Loan (Direct Loan) Program, are low-interest loans for eligible students to help cover the cost of higher education. Eligible students borrow directly from the U.S. Department of Education.
Direct Stafford Loans include the following types of loans:
- Direct Subsidized Loans—Direct Subsidized Loans are for students with financial need. Students are not charged interest while enrolled in school at least half-time and during grace periods and deferment periods.
- Direct Unsubsidized Loans—Students are not required to demonstrate financial need to receive a Direct Unsubsidized Loan. Interest accrues (accumulates) on an unsubsidized loan from the time it is first paid out to a student.
Note: These annual loan limit amounts are the maximum yearly amounts students may borrow in both subsidized and unsubsidized loans. Students can have one type of loan or a combination of both. There is a 1.068% origination fee deducted from the proceeds of the loan. Loan funds are disbursed directly to PMC in equal amounts over each term of enrollment for the academic year. There is a 6-month grace period prior to repayment following graduation, withdrawal, or a drop below half-time status.
Direct Loans Interest Rates
- Direct Subsidized loans - Disbursements made between July 1, 2015 and June 30, 2016, the interest rate is fixed at 4.29%.
- Direct Unsubsidized Loans - The interest rate is fixed at 4.29% .
Graduate and professional degree students
- Direct Subsidized and Unsubsidized Loans - The interest rate is fixed at 5.84%.
Annual and Aggregate Loan Limits:
The following chart provides maximum annual and aggregate (total) loan limits for subsidized and unsubsidized Direct Stafford Loans.
Dependent Undergraduate Student (except students whose parents are unable to obtain PLUS Loans)
Independent Undergraduate Student (and dependent students whose parents are unable to obtain PLUS Loans)
MFA Graduate Students
$5,500 - No more than $3,500 of this amount may be in subsidized loans
$9,500 - No more than $3,500 of this amount may be in subsidized loans
$20,500 - Unsubsidized loans
$6,500 - No more than $4,500 of this amount may be in subsidized loans
$10,500 - No more than $4,500 of this amount may be in subsidized loans
$20,500 - Unsubsidized loans
Third Year and After
$7,500 - No more than $5,500 of this amount may be in subsidized loans
$12,500 - No more than $5,500 of this amount may be in subsidized loans
$20,500 - Unsubsidized loans
Maximum Total Debt from Stafford Loans When You Graduate (aggregate loan limits)
$31,000 - No more than $23,000 of this amount may be in subsidized loans
$57,500 - No more than $23,000 of this amount may be in subsidized loans
$138,500 - Unsubsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study
Effective for loan disbursements beginning on or after July 1st, 2015, graduate and professional students are no longer eligible to receive direct Subsidized Loans. Direct Subsidized Loans disbursed prior to the 2015-2016 academic year are not affected by this change.
Federal Direct Parent Plus Loan For Undergrad Students
Parents of dependent students may apply for a Direct PLUS Loan to help pay their child's education expenses as long as certain eligibility requirements are met. Graduate and professional students may apply for PLUS Loans for their own expenses.
To be eligible for a Direct PLUS Loan for Parents:
- The parent borrower must be the student's biological or adoptive parent. In some cases, the student's step-parent may be eligible.
- The student must be a dependent student who is enrolled at least half-time at a school that participates in the Direct Loan programs. Generally, a student is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, a graduate or professional degree student, or a ward of the court.
- The parent borrower must not have an adverse credit history (a credit check will be done). If the parent does not pass the credit check, the parent may still receive a loan if someone (such as a relative or friend who is able to pass the credit check) agrees to endorse the loan. The endorser promises to repay the loan if the parent fails to do so. The parent may also still receive a loan if he or she can demonstrate extenuating circumstances.
- The student and parent must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the federal student aid programs. For additional information on eligibility requirements, go to the student aid eligibility page.
- The annual limit on a PLUS Loan is equal to the student's cost of attendance minus any other financial aid the student receives.
- If a parent is denied a Federal PLUS loan due to credit reasons, the parent may appeal the denial with the Direct Loan Servicing Center or reapply with a credit-worthy co-borrower. The Direct Loan Servicing Center can be reached at (800)-848-0979.
- Dependent students whose parents have applied for but were unable to get a PLUS Loan are eligible to receive additional Direct Unsubsidized Loan funds.
- The interest rate is fixed at 6.84%. Interest is charged from the date of the first disbursement until the loan is paid in full.
- In addition to interest, a loan origination fee of 4.272%, equal to a percentage of the principal amount of each Direct PLUS Loan that you receive, will be charged. This fee helps reduce the cost of making these low-interest loans. The fee is deducted the amount received.
- Repayment Plans - The Direct PLUS Loan Program for parents offers three repayment plans-standard, extended, and graduated-that are designed to meet the different needs of individual borrowers. The terms differ between the repayment programs, but generally borrowers will have 10 to 25 years to repay a loan.
Click here To Apply For a Direct PLUS Loan
Private/Alternative Education Loans
It is important to note that private/alternative loans are to be used a last resort. Students are encouraged to apply for all aid available and to use their maximum Federal Direct Stafford Loan eligibility, prior to seeking any private/alternative loan. Along with a quick internet search, it is also helpful to check out Federal Aid First when reviewing your options.
There are a number of factors to consider when choosing a private/alternative lender, including but not limited to: interest rate, eligibility, fees, loan limits, repayment and customer service. Most importantly the ability to obtain a private/alternative loan is largely based on your credit-worthiness. We suggest that you consider using a cosigner, which may help to reduce the cost of the loans and to ease the approval process. Citizenship status is also a consideration for many programs.
Important to know:
- PMC does not have preferred lender arrangements with any of the lenders listed below.
- This list is a comprehensive three year list of lenders used by our students. •This list is NOT ranked in any way.
- PMC receives no benefits for including these lenders on this list. •We cannot legally recommend a lender to you.
- We are available to answer any questions or provide information, as you identify the program options that best fit your needs.
- Under federal law, you have no obligation to borrow from one of these lenders.
- Some loans have additional requirements (membership or residency).
Private/Alternative Education Loan Self-Certification Form Information
As of February 2010, private/alternative education loan lenders are required to collect a completed and signed Private Education Loan Applicant Self-Certification Form. Students must submit this form to the lender prior to disbursement.
Federal Direct Loan Plus Loan For Graduate Students
This loan, borrowed directly from the federal government, is an alternative funding source for graduate/professional students who need additional funding to meet the cost of education. Financial need is not required to be eligible to borrow a Federal Direct GradPLUS Loan.
- Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Direct Loan Program before applying for a GradPLUS loan.
- The GradPLUS loan borrower (or the cosigner if required) must not have an adverse credit history.
- Graduate/Professional students who are enrolled at least half-time may borrow up to the cost of education minus other aid.
- Repayment of the GradPLUS loan begins on the date of the last disbursement. Under certain circumstances, deferment and forbearance options may be available. Interest continues to accrue and must be paid during periods of deferment or forbearance.
Direct GradPLUS Interest Rate and Fees
Direct GradPLUS loans have a fixed interest rate of 6.84%. Borrowers are charged a 4.272% origination fee. The entire fee goes to the government to help reduce the cost of the loans.
Some of the benefits of a Direct GradPLUS loan:
- The interest may be tax deductible.
- The GradPLUS loan may be repaid any time without penalty.
- GradPLUS loans can be consolidated with Stafford Loans, Direct Loans and other eligible federal education loans into one convenient, longer-term fixed-rate loan.
- Loan payments may be deferred while enrolled in school and reduced or deferred in times of economic hardship, if not in default.
To Apply for a GradPLUS Loan
Repaying Federal Student Loans
Repayment Plans -
The Direct Loan Program offers several repayment plans that are designed to meet the different needs of individual borrowers. Generally, you’ll have 10 to 25 years to repay your loan, depending on the repayment plan that you choose. You will receive more detailed information on your repayment options during entrance and exit counseling sessions at your school. For more information about repayment:
Tuition Management Systems (TMS) Interest-Free Budget Payment Plan
The interest-free monthly Payment Option allows you to budget your education expenses over the course of 9 – 12 months. The only cost is a $60 enrollment fee, which includes toll-free education payment counseling, and 24-hour automated account access. An information packet describing the plan will be included in your fall billing packet. To enroll, visit the TMS website https://pmc.afford.com or call 1-888-216-4258.