Sun. Aug 14th, 2022

CREDIT-BASED LOANS

Before applying for a private credit-based loan, consider all your options:

  • Federal Direct Student Loan – The student alone is the borrower and generally the terms are more favorable. Eligibility is not based on credit, instead eligibility for the subsidized version is based on financial need as demonstrated via the FAFSA, and eligibility for the unsubsidized version is granted even when the FAFSA yields no demonstrated need. Be sure you have been awarded the full amount allowed before pursuing other loans. More information including maximum loan limits can be found here. Loan limits specifically for medical campus students can be found here.
  • Federal PLUS Loan – The parent of a dependent undergraduate student or a graduate student is the borrower. Eligibility is based on the PLUS credit criteria which is less stringent than the credit criteria used by most private loan lenders. At 6.28%, the PLUS Loan interest rate may be higher than the rate you may qualify for through a private lender. Also, the PLUS Loan requires a 4.228% origination fee; most private lenders do not require fees.
  • State-sponsored loans – You may also want to check the state-sponsored loans listed below. Some require in-state residency while others do not.

We urge you to compare credit-based loan information and terms carefully to determine the best fit for your particular circumstances. You must apply for private credit-based loans directly with those lenders. Demonstrated financial need is not required for approval, but applicants must meet credit and other eligibility requirements set by individual lenders. You may choose to borrow from any lender without penalty.

You must complete Private Education Loan Self-Certification Form and submit it to the lender before your application for a private educational loan can be processed.

Get more information on private credit-based loans for:

Credit-based Loans Offered by Your State

The University cannot guarantee that this is a comprehensive list of credit-based loans offered by states, and we encourage you to check with your state about the availability of such loans. You are not required to borrow from any of the lenders listed here or in other University materials. You may consider and choose any lender without penalty.

StateTelephone
Alaska800-441-2962
Connecticut800-935-2275
Indiana317-715-9015
Iowa800-243-7552
Kentucky888-678-4625
Maine800-922-6352
Massachusetts800-266-0243
Minnesota800-657-3866
New Jersey800-792-8670
North Carolina866-866-2362
North Dakota800-472-2166
Rhode Island800-758-7562
South Carolina800-347-2752
Vermont800-226-1029

SOURCE https://www.bu.edu/finaid/types-of-aid/loans/credit-based-loans/

Leave a Reply

Your email address will not be published. Required fields are marked *