Glossary of Terms
The Basics
Understanding your private student loan options
You should begin with: Government loans
Then fill the gaps with: Monticello Student Loans
Government loans
How you apply
Loans like Perkins, Stafford and PLUS usually charge lower interest rates, and allow
you to lock in fixed interest rates. To be considered for these loans or any type
of institutional financial aid, submit the Free Application for Federal Student
Aid application (FAFSA) sometime between January 1 and June 30, in advance of the
academic year.
The FAFSA is used by virtually every two- and four-year college, university and
career school for the awarding of federal student aid. The form may be submitted
online at www.fafsa.ed.gov or by completing the paper form.
Be sure to fill out the FAFSA carefully; mistakes could mean a missed deadline.
You will get some indication of how much federal aid you can receive in about four
to six weeks.
Who can get them
All college-bound students are eligible for federal loans. The loan amount will
depend on factors like family income, number of dependents in the family, the student’s
ability to demonstrate financial hardship. The financial aid office at your child’s
school will use these factors and your Expected Family Contribution (EFC) to determine
his or her eligibility to receive financial aid.
How much you can get
It depends. Many government loan programs use an "Expected Family Contribution"
to determine if you qualify for aid. Expected Family Contribution is determined
from the information you provide in the FAFSA. The EFC calculates how much money
you and your family are expected to contribute toward your cost of attendance for
the school year. If your EFC is below a certain number, you'll be eligible for a
Federal Pell Grant, assuming you meet all other eligibility requirements.
Many federal loans also have annual borrowing limits. Research them on the Department of Education website here:
http://studentaid.ed.gov.
Filling the gaps: Monticello Student Loans
When it's smart money
A Monticello Student Loan is a great solution for families caught between soaring
private college costs and limited aid programs. A Monticello Student Loan is a smart
supplement to a federal student loan to cover the full cost of education.
It's also a practical choice for parents who can't afford the penalties of taking
funds from their 401(k)s or other retirement plans, who believe that putting the
house up with a home equity loan is something you do in an emergency, and who know
that too many kids get themselves buried in high-interest credit card debt just
trying to pay the day-to-day cost of college.
The Monticello Student Loan is also an important choice for students, because you
should be free to go to the best school you can, not just the best school you can
afford.
Monticello Student Loans have surprisingly competitive interest rates. And undergraduates
have a choice of repayment options: delay repayment for up to a maximum of five years,; save
on fees by making interest-only payments while in school; or start making full payments
right away to save the most over the life of the loan.
How you apply
There are no financial aid forms. Simply apply online, right
now.
A Monticello Student Loan is a private, or alternative student loan — which means
it comes from a trusted private financial institution, not the government.
The application can take as little as 15 minutes from start to finish.
Who can get them
Monticello Student Loans are credit-based loans. The rules are straightforward,
and our basic eligibility requirements are what you'd expect.
In general, the harder you and your family have worked, the more you've planned
and saved and managed family finances, the more likely it is you'll get all the
help you'll need. You don't need to fit into a financial need or hardship formula.
You won't be turned down because your family makes too much money or because you’ve
received additional financial aid. You can use a Monticello Student Loan with or
without a federal loan.
Private student loans are available to students, and having a parent (or another
creditworthy adult) as a co-signer will increase your likelihood of approval.
How much you can get
You decide how much you need to supplement your federal loan. Undergraduates and
graduates can borrow from $1,500 up to the lesser of $40,000 or the estimated cost
of their school program.1
Your Monticello Student Loan will be based on financial creditworthiness, but you
should borrow an amount that appropriately matches your actual school expenses when
your federal loan is not sufficient to cover the full cost of education.
As you think about what you need, think about all the costs of going to college,
not just tuition: travel home, room and board, books, essential computer equipment,
athletic fees, lab fees. You can use a Monticello Student Loan for any education-related
expense. And undergraduates have a choice of repayment options.
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