The College charges do not include costs for travel, books, or personal expenses. In calculating a student's budget the Office of Financial Aid estimates the costs of books and personal expenses at $1,830. Travel costs are determined individually, based on location of your home and it includes two round trips home.
To estimate what the family's contribution might be, please use the http://www.finaid.org/calculators or refer to your Student Aid Report from your FAFSA application. Remember, this is not what you and your family will pay to the College. How much you owe is based on your cost of attendance minus financial aid offered.
Before you consider borrowing, you and your parents will want to consider a monthly payment plan. This plan is sponsored by the College and administered by Tuition Management Systems ( a Key Corporation company). Through the plan, a student's annual charges may be paid in ten installments. For more information, contact Student Accounts at 507-933-6244 or Tuition Management Systems at (800) 356-8329.
Gustavus participates in the Federal Direct Loan Program for Stafford and PLUS (Parent Loan for Undergraduate Students).
Federal Direct Stafford Loans (Subsidized and Unsubsidized) may be packaged as part of a student's aid award if the student has filed a FAFSA and a Gustavus Financial Aid Application. The 2008-2009 interest rate for the subsidized Stafford loan is 6.0%. The interest rate on the unsubsidized Stafford loan is 6.8%.
In the first year that a student borrows, a student must complete entrance counseling and a master promissory note for each of the programs. In subsequent years, the student must only file a Renewal FAFSA and the Gustavus Financial Aid Application to be considered for these types of loan assistance. There are four types of repayment plan - standard, extended, graduated, and income contingent - so you can choose the one that is best suited for your situation. Visit http://www.ed.gov/offices/OSFAP/DirectLoan/calc.html for additional information on loan repayment and consolidation.
Federal Direct Parent Loans for Undergraduate Students (PLUS) are not awarded as part of a student's aid package. The first year a parent borrows under this program, he/she must complete a master promissory note. While parents of all income levels are eligible, a credit check is completed by the Federal Direct Loan Servicer. To apply please complete the PLUS Loan Pre Application Form.
Borrowing limits: Parents may borrow up to the cost of attendance minus any other aid received by the student annually.
Fees: All PLUS Loans are subject to fees of 4% that are withheld from the amount received. There is a 1.5% interest rebate (fees less rebate is 2.5%--the total amount withheld from the loan.) Fees are deducted from the loan proceeds at the time funds are disbursed.
Disbursement:After the PLUS Loan has been approved and is ready to disburse, it will be disbursed in two equal installments. Academic year loans will be disbursed half in the fall and half in the spring. Exact terms of the disbursement will be sent by the Federal Direct Loan Servicer to the parent on a disclosure statement.
Example: If a parent borrows a $4,000 PLUS Loan for the academic year, it would be disbursed in two payments:
$2,000 less 2.5% in fees ($1,950) for the first disbursement
$2,000 less 2.5% in fees ($1,950) for the second disbursement
Repayment: Repayment begins within 60 days after the loan funds for the year are fully disbursed (within 60 days after the second disbursement). Parents may also request a delayed repayment start date. Under the deferment option,
The PLUS Loan is a serious financial obligation which must be repaid. Please remember the following:
For more details about the Parent PLUS Loan, go to the U. S. Department of Education's Direct Loan web site.
Important Loan Processing Tips
While we encourage students and families to pursue federal financial aid before considering private education loans, there are many student/family situations where a private loan is viewed as a preferred alternative. Sometimes parents want their student to be responsible for his/her education. In other cases, the convenience of needing no Federal forms to borrow funds is also a consideration. Whatever your situation may be, borrow only what you need and compare your options before you borrow.
Private, alternative Loans are loans not guaranteed by the Federal Government and are not awarded as part of a student's financial aid package. The borrower (either student or parent) may borrow such a loan through various participants such as banks or credit unions to help cover college expenses.
There are many different types of alternative loans for different types of borrowers. Alternative loans are not need-based; rather they are based on creditworthiness. Most students will need a creditworthy co-signer such as a parent or other relative in order to obtain a private loan.
Terms and conditions applicable to these loans vary greatly. Factors such as interest rate, APR, length or repayment, loan minimum and maximum as well as fees should be carefully considered when researching and choosing a private loan.
Click here Private Alternative Loans/MN SELF Loan for additional program information that can assist your parents in meeting their obligation for your college costs. This suggested list of lenders has been made available to you as a guide only. If you would like to work with a lender that is not listed, you will need to go directly to their website for additional information or you can contact our office for assistance.
