loans

the PLUS loan

Parent Loans for Undergraduate Students (PLUS) are low-interest education loans that allow parents to borrow up to 100% of the estimated cost of their children's attendance… this includes their tuition, room and board, books, transportation and any additional expenses. However, any other financial aid that is awarded to a student will be subtracted from this amount. 

There is often a fee of up to 4%, which will be deducted proportionally through the life of the loan. The amount given for the PLUS is related to the student’s academic status as well as dependency status.

PLUS Loan Application

the Stafford loan

A Stafford loan is a government guaranteed loan offering low interest-rates and deferred payment options. A Stafford loan can either be subsidized or unsubsidized. A subsidized (LOAN)is awarded on the basis of financial need. Should you qualify, you will not be charged any interest before you begin payment (or during other agreed periods of deferment). An unsubsidized loan is just that… a loan. You will be charged interest from the moment you sign the papers. And like most loans, any interest you allow to accrue will be added to the principal, onto which additional interest will be charged. Either way, no credit check will be required when applying for this loan.

In order to be eligible for a Stafford loan, a student must be a U.S. citizen (or eligible non-citizen) with a high school diploma or GED who is enrolled (at least half time) in an accredited degree program. In addition, the student must be in good standing on any other student loans. The total amount a student can owe at any one time is determined by dependency status. For a dependant undergraduate student, it is $23,000. For an independent undergrad, it can be $46,000, though only half may be unsubsidized.

You can apply online for the Stafford loan at:

https://www.financialaid.com/stafford/apply.cfm

scholarships and scams

Every year, millions and millions of dollars are lost to scholarship fraud. While the Scholarship Fraud Protection Act has limited certain dangers, there are still some classic signs:

  • No free lunch. A scholarship program offering to “do all the work” is suspect. Usually, it’s up to you to fill out the forms and make your case. This isn’t to say it will never happen, but it’s rare, so be careful.

  • Credit info up front. A credit card or bank account number should never be required to “hold a scholarship”.

  • It’s gonna cost ya. You should never, ever have to pay for part of the scholarship. Even if they promise your money back should you not win. Don’t do it!

  • I won, but I didn’t enter. It’s tempting to be wooed by pieces of mail claiming the genius status of your child who has seemingly become a finalist in a contest he or she never even entered. Be careful!

310.210.7499     info [at] mosaicprep [dot] com