Loans
A variety of financing options are available to help students finance the cost of education. Allegheny College Office of Financial Aid suggests that you compare the following loans among your many choices, if additional financing is needed.
Federal Loans
About
Federal Direct Loans are provided as an option to all students who submit a FAFSA. Students receive a six month grace period after they are no longer enrolled at least half time. There are two types of Federal Direct Loans:
- Subsidized loans are based on demonstrated financial need. The interest rate is fixed and paid by the federal government while you are enrolled at least half time.
- Unsubsidized loans have a fixed interest rate and begin to accrue while the student is enrolled. The interest payments can be made while the student is enrolled or deferred until the student begins repayment.
Value
$5,500 for first-year students (0-27 completed credits), $6,500 for sophomores (28-59 completed credits), $7,500 for juniors and seniors (60 and above completed credits).
More Info
Borrowers will be required to complete entrance counseling and a master promissory note (MPN).
Eligibility
PLUS Loans are an option for parents of dependent undergraduate students. Dependent students whose parents apply and do not qualify for this loan are eligible to borrow additional unsubsidized loans up to $4,000 each of the first two years, then $5,000 each year for up to three additional years of undergraduate study.
Value
Up to the total “Cost of Education” minus other financial aid. The loan has a fixed interest rate and begins to accrue immediately. Loan repayment begins 60 days after the funds are received. Parents may elect to defer payments until six months after their student graduates or drops below half time.
More Info
For more information, visit www.studentaid.gov
Instructions
Request a loan amount (all borrowers) — This step must be completed in order to utilize the PLUS Loan. As part of the application process, you can request a specific loan amount or allow the school to determine your maximum PLUS Loan eligibility. This allows the Department of Education to perform a credit check. The school will receive electronic notification within 24 hours of completion.
- Go to studentaid.gov.
- The parent borrower needs to sign in using their FSA ID.
- After you sign in, select Apply for a Direct PLUS Loan, then start the Direct Plus Loan Application for Parents.
Private Loans
Purpose
Privates loans can be used to cover costs that remain after other options for financial aid have been applied. Students are encouraged to take Federal Direct Loans and exhaust all other sources of funding before taking private loans.
Eligibility
Students with credit-worthy cosigners. Any creditworthy individual can borrow a private parent loan, including grandparents, other relatives, friends, or guardians.
Value
Up to the total “Cost of Education” minus other financial aid. Private loans offer both variable or fixed interest rates that accrue during the student’s enrollment.
More Info
To assist you, Allegheny maintains a list of private student loan lenders at elmselect.com. Additionally, Allegheny partners with Sparrow where you can search and compare real, personalized private student loan offers from over 16+ lenders through a simple, three-minute application. Sparrow provides a suite of analytical tools that make loan comparison easy, digestible, and visual. Using Sparrow is free and does not impact your credit score. Both sites are provided as a starting point, but you are not limited to the lenders listed. Allegheny works with all private student loan lenders and does not promote, endorse, or recommend a specific lender.
Upcoming Tuition and Aid Deadlines
Keep track of important deadlines for applying for aid and paying your bill.
More Sources of Financial Aid
A scholarship to Allegheny College can make a big difference toward the cost of your college education. Scholarship awards can go up as high as $42,000.
Explore a variety of grants to support student financial needs. These grants are awarded based on a range of criteria, including financial need and merit, to help make college more affordable for all students.
Allegheny College offers education benefits for veterans and their families, such as the Post-9/11 GI Bill® and Montgomery GI Bill®.
For help building the financial aid package that makes college affordable for you, follow this guide to begin the aid application process.
