Whether or not you are receiving scholarship assistance there are financing options available. These options are for U.S. citizens and eligible non-citizens. Due to current market conditions we are unable to recommend any loan options for international students and their families at this time. Please contact the Financial Aid Office with any questions you may have or to see if other loan options have become available.
Federal Stafford Loan
Federal Subsidized and Unsubsidized Stafford Loans are authorized by Title IV of the Higher Education Act of 1965, as amended. Under this program, loans are made by banks and other commercial lenders from their own funds, with guarantees by the federal government. For need-based subsidized loans, the federal government pays the interest until the loan goes into repayment status, usually six months after the student borrower is no longer enrolled at least half-time.
The Federal Unsubsidized Stafford Loan, open to students who may not qualify for subsidized loans or who may qualify for only a partial subsidized loan, has the same terms and conditions except that the student borrower is responsible for interest that accrues while he/she is in school.
Borrowing levels depend on your year in school. First year students are eligible for $5,500 in Stafford Loan funds. The maximum amount a student can borrow in a Subsidized Stafford Loan is $3,500. They would then be eligible for another $2,000 in Unsubsidized Stafford Loan funding. Interest rates are fixed, but vary between the two programs (6.0% for subsidized loans, 6.8% for unsubsidized loans). Depending on the lender, there can be fees associated with the loan as high as 3-4% of the principle amount borrowed.
For more information about the Federal Stafford Loan Program please contact the Financial Aid Office. Additional information about your lending options is enclosed.
Federal PLUS Loan
The Federal PLUS loan (formerly known as a Parent Loan to Undergraduate Students) is a loan program sponsored by the U.S. federal government. The amount borrowed can be as high as the cost of education minus other aid or as low as desired or required. A credit check determining the parent's credit history is necessary.
There is a fixed interest rate of 8.5% for all Federal PLUS Loans. Depending on the lender, there can be fees associated with the loan as high as 3-4% of the principle amount borrowed. Payments may now be deferred until after the student in no longer enrolled at least half-time, but we encourage you to make at least interest only payments while the student is enrolled.
Request a Federal PLUS Loan no earlier than 60-days before the first term of attendance in each academic year. There is a limited amount of time for colleges to certify an approved loan due to the required credit check. If you are approved too soon the credit check will expire before it is possible to certify the loan; you may then be required to reapply for the loan.
For more information about the Federal PLUS Loan Program please contact the Financial Aid Office. Additional information about your lending options is enclosed.
Private Alternative Loans
There are many private alternative student loan programs available. A quick internet search will provide you with many options. We strongly recommend that you consider a private alternative education loan only after all other types of federal and institutional financing options have been exhausted. Please meet with a financial aid officer to discuss the method of financing that is in your best interest.
Your ability to obtain private education funding is largely based on your credit-worthiness and your current aggregate indebtedness. We suggest you consider using a cosigner, which may help to reduce the cost of the loans and to ease the approval process. Citizenship status is also a consideration for many programs.
If you plan on borrowing an alternative loan, please pay careful attention to the loan terms (interest rates, fees, payment obligations, etc.) These terms vary widely from lender to lender and from loan program to loan program. Most alternative loans do not offer deferment or forbearance options if you have difficulty repaying your loan, so check your loan documents carefully. If you experience problems during repayment, contact your lender immediately.
For more information about Private Alternative Loan Programs please contact the Financial Aid Office. Additional information about your lending options is enclosed.
Under federal law, YOU have the right to borrow student loans through the lender of your choice. The Financial Aid Office will certify your Federal Loan using the lender you choose. Choosing the right lender for your educational loan is an important decision. You should base your decision on two important factors: borrower benefits and customer service.
Borrower benefits are designed to help reduce the cost of repaying a loan. Benefits range from the payment of origination and/or guarantee fees to interest rate or principal balance reductions for on-time payments or automatic payments. Statistically, few borrowers qualify for benefits tied to on-time payments. Be aware of how many payments you need to make to qualify, if they have to be consecutive payments and if you can re-qualify for the benefit if you are not on-time with a payment.
Customer service is also an important factor in choosing a lender. The repayment period can range from 10 to 25 years, sometimes longer. You may have a long term relationship with the lender you choose, so make sure they will work with you effectively when it comes time to repay your loan.
Keep copies of ALL the materials you receive from your lender. Once you enter repayment you will be able to refer to these materials to make sure you are getting the benefits you were promised.
QUESTIONS TO ASK A LENDER
What borrower benefits do you offer?
How do I qualify for these benefits?
How much could I save by qualifying?
Do you have an online calculator to estimate the savings of various loan amounts?
What percentage of your borrowers qualify for the benefits?
Do you sell your loans to another agency at repayment?
If yes, when and to whom?
Will my benefits carry over if my loan is sold?
What is the contact information for your servicing agency?
Do you process your loans through the ELM Resources Network?
ONCE YOU HAVE CHOSEN A LENDER
FIRST TIME BORROWERS FOR STAFFORD LOANS and ALL PLUS LOAN BORROWERS
Complete the Master Promissory Note (Federal Loans) online with your lender.
If your lender participates with ELM, have them send the school certification request electronically to Dartmouth College (school code: 00257300).
If your lender does not participate with ELM, have them fax the school certification form to (603) 646-1414. Make sure they include their lender code and servicing agency code.
We will certify your loan with your lender as soon as possible after we receive the school certification request. Your loan proceeds will be disbursed at the beginning of each term you are enrolled.
RETURNING BORROWERS FOR STAFFORD LOANS
If you wish to use the same lender as in previous years, you do not need to notify the Financial Aid Office. The Financial Aid Office will certify your loan for the amount on your award letter with the lender you chose in a prior year.
If you wish to change lenders, please contact the Financial Aid Office in writing (email: financial.aid@Dartmouth.edu) of your decision.
LENDING CHOICES
For a list of current federal loan lenders please visit:
http://www.dartmouth.edu/apply/financialaid/lenderlist.html
If you decide to use one of the lenders on this list for your federal loan, be advised that we have set up our servicing options to include a specific guarantee agency with each lender. The guarantee agency was chosen based on the same principles that we used in selecting lenders - customer service and borrower benefits. The Financial Aid Office will certify your loan with the guarantee agency of your choice, as long as they have a servicing agreement with your choice of lender. If you wish to use a different guarantee agency, notify your lender and the Financial Aid Office.
Per Federal Regulations, Lenders and Guarantee Agencies are required to charge borrowers origination and default fees. These fees can go as high as 4% of the principal amount of the your loan depending on the type of loan you are applying for and whether or not your lender or guarantee agency is subsidizing the fee. For example, if you were approved for a $1,000 loan with 4% in fees the school would only receive $960 at disbursement. Check with the lenders to see how fees affect your loan.
Due to changing market conditions some of these lenders may no longer be participating in the Federal Loan Programs. This list is accurate as of March 2, 2009.
For a more complete list of national and regional education lenders visit:
www.finaid.org/loans/educationlenders.phtml
General Financial Aid Information:
Federal Website: www.studentaid.ed.gov
DARTMOUTH COLLEGE
OFFICE OF FINANCIAL AID
6024 MCNUTT HALL - 2ND FLOOR
HANOVER, NH 03755-3541
(603) 646-2451 or 1-800-443-3605
(603) 646-1414 (Fax)
Email: financial.aid@Datmouth.edu
