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Student Loans

Beginning in the summer of 2012 Dartmouth will no longer include loans for families with a total income less than $100,000 with typical assets for all entering and current students.  For students who entered under our original no loan initiative, this policy will remain in effect.

Nevertheless, loans are often available for both students and parents should the need arise for a family to borrow to cover the family contribution.  Student loans can be added to your award at your request anytime during the academic year.

Institutional Loans

Dartmouth Educational Association (DEA) Loans are need-based loans from a fund supported by Dartmouth alumni. Terms are the same as described below for Federal Perkins loans.

Dartmouth Educational Loan Corporation (DELC) provides need-based loans for students beyond that available from federal loan funds. The variable interest rate is reset annually. In 2011-12 the rate is 6.8%. Loans are cosigned by parents and students. Interest accrues from the date of borrowing, but payments of principal will not begin until three months after students have left Dartmouth. A credit check is required.

Foreign Student Loans are loans awarded to undergraduate international students from Dartmouth College funds and are based solely on need. The interest rate is 7%, and the repayment terms are the same as described below for Federal Perkins loans.

Federal Perkins Loan

Perkins Loans are need-based federal loans and are awarded to the neediest students at Dartmouth. Federal regulations limit these loans to $5,500 per year and $27,500 for the undergraduate career. No interest accrues and no repayment is expected while a student is enrolled in an institution of higher education at least half-time and for nine months thereafter. Repayment of principal then begins and interest is charged at the rate of 5%. The minimum monthly repayment is $50 and the maximum repayment period is 10 years.

Federal Direct Stafford Loans

Through the William D. Ford Direct Lending program, borrowers receive federal loan funds directly from the U.S. Department of Education.  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 Direct Unsubsidized Stafford Loan, open to students who may not qualify for subsidized loans or who may qualify for only a partially 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.

Through the Federal Direct Stafford Loan program, the amount students are eligible to borrow depends on their year in school:

  • First-year students can borrow up to $5,500. The maximum amount a student can borrow in a Subsidized Direct Stafford Loan is $3,500. They would then be eligible for another $2,000 in Unsubsidized Direct Stafford Loan funding.
  • Second-year students can borrow up to $6,500.  The maximum amount a student can borrow in a Subsidized Direct Stafford Loan is $4,500. They would then be eligible for another $2,000 in Unsubsidized Direct Stafford Loan funding.
  • Third and Fourth-year students can borrow up to $7,500. The maximum amount a student can borrow in a Subsidized Direct Stafford Loan is $5,500. They would then be eligible for another $2,000 in Unsubsidized Direct Stafford Loan funding.

Interest rates are fixed, but vary between the two programs (3.4% for subsidized loans in 2011-2012, 6.8% for unsubsidized loans). An origination fee of 1% of the principle amount borrowed is deducted from each disbursement for both programs.  More information concerning your educational loan options can be found on the Financing Options section of this website.  New borrowers must complete a Master Promissory Note and Entrance Counseling Session online at StudentLoans.gov.

Private Alternative Loans

There are several private student loan programs available that can be found using a quick Internet search. 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 contact 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 that 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. More information about private alternative loan programs can be found on the Financing Options section of this website or by contacting the Financial Aid Office.

Loans for International Students

Other than the Foreign Student Loans offered by Dartmouth, loans for international students are very limited right now due to current financial markets worldwide.  Contact the Financial Aid Office for more information.

 

Last Updated: 8/1/12