Other Financing Options

Monthly Payment Plan:

• Families can spread their payments out over 10, 11 or 12 months
• Hamilton partners with the TuitionPay! by Sallie Mae Payment Plan
• $45 annual fee
• No interest charged
• Consider financing through a payment plan before taking additional loans

Stafford Loan:

• 2008-09 Student Loan Request Form
• 2007-08 Stafford Loan Request Form
• Regardless of financial need, all students can borrow a Stafford Loan if a FAFSA is filed
• The portion of the loan that is "beyond financial need" is unsubsidized, which accrues interest upon disbursement
• 6.8% fixed interest rate
• 10 years to repay (repayment begins 6 months after college) 
• Limits = $3500 freshman, $4500 sophomore, $5500 for juniors and seniors 

Parent Loan for Undergraduate Students (PLUS):

• Parent loan available to cover cost of attendance less other financial aid
• Please consult a lender directly (some suggestions above).
• 8.5% fixed interest rate
• Interest begins to accrue on the loan from the date of the first disbursement
• Repayment begins within 60 days after the second disbursement of the loan (forbearance/deferment possible - contact lender)
• 3% Origination/Guarantee fee will be assessed, which is subtracted from the amount borrowed prior to being disbursed
• Borrower must be a U.S. citizen or permanent resident
• Borrower must pre-qualify (pass a credit check)
• If parent's credit is denied, the student is eligible to borrow an additional unsubsidized Stafford loan in the amount of $4,000 for 1st and 2nd year students, $5,000 for 3rd and 4th year students. The student must complete the appropriate section of the Stafford Loan Request Form (in production).

Alternative Loan:

• Students should take a Stafford Loan before an Alternative Loan
• Parents should explore a PLUS Loan before an Alternative Loan
• Compare rates, benefits and repayment options
• Students will usually need a co-signer (i.e. parent)
• Canadian citizens can borrow through the Canadian government's Ministry of Skills, Training and Labour (CanLearn) or through the Canadian Higher Education Student Loan Program (CanHELP)

Not Credit Cards:

• Don't finance any costs associated with college on your credit card
• Educational loans offer better rates and advantages than credit cards
• Tax laws allow some taxpayers who are eligible to deduct interest paid on educational loans

Other Options (best to consult a Financial Advisor):

Home Equity Loans
pro:  interest is typically tax deductible; long repayment periods
con:  dependent on equity in home; home is collateral; may have closing costs

IRA Draws
pro:  early withdraws for qualified education expenses usually not subject to tax penalties
con:  future interest lost on investment; potentially putting retirement at risk

Life Insurance
pro:  usually borrowed from cash value or dividends of whole life insurance; usually low fixed interest rate
con:  if not repaid, reduces the investment earnings and death benefits; not usually tax deductible

Retirement Savings (401k and 403b)
pro:  withdraws may be allowed for qualified education expenses
con:  future interest lost on investment; potentially putting retirement at risk; taxed on withdrawal