Aid for Parents

There are several programs that can assist your parents in meeting their obligation for your college costs.  Here is a summary of a number of parent loans and family financing alternatives.

• Federal Direct Parent Loan for Undergraduate Students (PLUS): A federally sponsored program under which parents may borrow as much as the cost of attendance at the College less the amount of any student financial aid and other parent loans. Application for a Federal Direct PLUS loan is made through the College. PLUS loan information and the PLUS loan Pre-Application is available on our forms page. There is no need test; a review of credit worthiness is required. The interest rate is fixed at 7.9%. (For loans disbursed before July 1, 2006, the interest rate is set annually and is equal to the 91-day United States Treasury bill interest rate as of June 1, plus 3.1%; currently, 8.02% through June 2008 with a maximum rate of 9%). There is a net 2.5% origination fee (4% minus a 1.5% rebate). Repayment begins no later than 60 days after disbursement of the loan. The repayment period may be as long as ten years, although a monthly minimum repayment of $50 is required. For more information, contact the Office of Financial Aid.
  
  
• MEFA Loan: The MEFA loan program (formerly the MassPlan) is a financing option offered by participating colleges in conjunction with the Massachusetts Educational Financing Authority. Residents of all states are eligible to apply. Loans may range from $2,000 to as much as the student's total cost of attendance less any financial aid and other parent loans. There is no need test; a review of credit worthiness is required. Repayment begins a month after the loan is disbursed and may extend up to fifteen years. The MEFA loan program has the option of a fixed or a monthly variable interest rate. For 2007-2008, the fixed interest rate is 6.39% (APR 6.71%); the variable rate is 7.56% (APR 7.89%) with a rate cap of 12%. An origination fee of 2.50% of the entire loan principal is included in the total loan amount.  For more information contact the Office of Financial Aid or MEFA, 125 Summer Street, #14, Boston, MA 02110, (800) 449-6332 or on-line at http://www.mefa.org.
  
  
• Monthly Payment Plan: This plan is sponsored by the College and administered by Tuition Management Systems. Through the plan, a student's annual charges may be paid in ten or twelve installments beginning in June before the start of the academic year. Those starting the plan after June 1 must include back payments with the application. There is a $65 non-refundable application fee. There is no finance or interest charge. For more information, contact the Office of the Comptroller (413) 542-2101 or Tuition Management Systems at (800) 722-4867. Apply online at http://www.afford.com.
  
  
• Achiever Loan: This loan plan permits payment of four years of college costs over a period as long as twenty years. Other terms are available for shorter periods of education costs. Interest is charged on the unpaid balance at a rate equal to 3.85 % above the 3-month LIBOR (London Interbank Offered Rate), adjusted quarterly. The maximum rate is 18 %. A 2% loan fee is added to each disbursement; insurance premiums are included in the monthly payment schedule. For more information, contact the Office of the Comptroller or Key Education Resources at http://www.key.com/educate.