The NHHEAF Network - Parents- Loan Programs

Loan Programs Available

The following is a description of all the different ways you can finance your child's education.

Loan is in a parent's name:

Federal Parent PLUS Loan
A Federal loan for parents of dependant, undergraduate students. Apply Online with NHHELCO

Loan is in a student's name:

Stafford Loan Apply Online with NHHELCO
A Federal loan for undergraduate and graduate students.

Graduate/Professional PLUS Loan Apply Online with NHHELCO
A Federal loan for graduate and professional students.

LEAF^SM Consolidation Loans Apply Online with NHHELCO
The Loan for Educational Assistance Funding (LEAF^SM) Consolidation Loan is a private, non-Federal loan for borrowers wishing to consolidate prior NHHELCO alternative loan/s (TREE^SM or LEAF^SM).

Other Available Options for Students:

Federal Pell Grant: does not have to be repaid. Awarded to students with exceptional financial need. Award amount is based on the Cost of Attendance, Expected Family Contribution (EFC) and enrollment status of student. As of April 2009 students can receive between $976 and $5350 if eligible.

Federal Supplemental Educational Opportunity Grant (FSEOG): does not have to be repaid. A federal grant program for undergraduate students with exceptional need. SEOG grants are awarded by the school’s financial aid office. $100 to $4000.

Academic Competitiveness Grant: does not have to be repaid. For undergraduates receiving Pell Grants who are U.S. citizens enrolled full-time in their first or second academic year of study. For first academic year students who have completed a rigorous secondary school program of study, graduated from high school after January 1, 2006 and have not been previously enrolled in an undergraduate program. For second academic year students who have completed a rigorous secondary school program of study, graduated from high school after January 1, 2005 and have at least a 3.0 cumulative GPA. Up to $750 for the first academic year, up to $1,300 for the second academic year.

National Science and Mathematics Access to Retain Talent Grant (National SMART Grant): does not have to be repaid. For undergraduates receiving Pell Grants, who are U.S. citizens enrolled full time in their third or fourth academic year of an eligible program majoring in physical, life or computer sciences, engineering, technology, mathematics or a critical-need foreign language and have at least a 3.0 cumulative GPA. Up to $4,000 for each of the third and fourth academic year.

Federal Work Study (FWS) Employment: does not have to be repaid. For undergraduate and graduate students; jobs can be on campus or off campus; students are paid at least federal minimum wage. Money earned from a FWS job is not credited to the tuition bill. Therefore, FWS earnings are typically used to cover indirect costs (book, materials, personal expenses). No annual minimum or maximum award amounts.

Subsidized Federal Stafford/Direct Loans: must be repaid. U.S. Department of Education pays interest while borrower is in school and during grace and deferment periods. Student must be enrolled at least half time and demonstrate financial need. Beginning on July 1, 2006, these loans have a fixed interest rate of 6.8%. $3,500 to $8,500 depending on grade level and dependency status.

Unsubsidized Federal Stafford/Direct Loans: must be repaid. Borrower is responsible for interest during the life of the loan. Student must be enrolled at least half time. Financial need is not a requirement. $3,500 to $20,500 (less any subsidized amounts received for the same period), depending on grade level and dependency status.

Federal Perkins Loan: must be repaid. The Perkins Loan has one of the lowest interest rates (5%) and is awarded by the financial aid administrator to students with exceptional financial need. The interest on the Perkins Loan is subsidized while the student is in school and the student has a 9-month grace period after graduating or leaving college before repayment begins. $4,000 maximum for undergraduate students, $6,000 maximum for graduate and professional degree students.

Other Possible Payment Options:

Private Student Loans

•Loan is made in the student’s name

•Often there are deferred payments while in-school

•May require a creditworthy co-signer

•Applicant must understand rates, terms, repayment options, annual limits, and bank fees

•Usually based on LIBOR or PRIME rates (common financial indexes, which are often used as base rates in lending)

Learn more about private student loans

Tuition Payment Plan
• No interest payments

•Typically payments are divided over 8 - 12 months

•Helps to limit the need for borrowing by allowing families to pay college costs from current income

•Enrollment fee

•Financial aid office provides information about payment plans

Home Equity Line of Credit (HELOC)

• Revolving credit line, much like a credit card that is backed by the portion of the home value that the borrower owns outright

•Interest rates are most often variable and payments will vary depending on the interest rate and amount owed

•Do your research as certain fees may apply

•Interest may be tax deductible

See www.irs.gov for more information

Home Equity Loan

•A one-time lump sum loan based on the amount of equity a homeowner has in the property

•Usually features a fixed rate, payment and term