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Your financial aid award offer may include a recommendation for an educational loan obtainable from a private lender. These educational loans include: the Federal Stafford Loan (for undergraduate and graduate students); the Federal PLUS Loan (for parents of undergraduate students); the Federal Graduate PLUS Loan (for graduate students); and the private alternative loan (for undergraduate and graduate students). Consult your most recent Chaminade financial aid award letter for the loan(s) that may apply to you. If you wish to borrow any of these loans, you will need to select a lender to borrow your loans through.
Before you decide to borrow, please understand that if you can pay for your college education without having to borrow you should do so. If you do need to borrow, understand that you should only borrow what you need to go to school. With this understanding, however, please note that the loan amounts listed on your award letter were designed, in conjunction with other aid that you may be eligible for, to provide for sufficient funds to meet your entire estimated college costs (both direct and indirect). In other words, to cover not just what you will owe Chaminade, but to pay for other costs such as personal expenses.
It may not be necessary for you to borrow everything that is recommended if you intend to pay portions of what you need for college on your own. Therefore, you (or your parent if considering the PLUS Loan) are not obligated to borrow the amounts listed on your award letter, and for that matter, do not have to borrow any loans at all if you don’t desire. As everyone’s personal finances (as well as philosophies about borrowing) differ, you should use your own judgment as to whether you would want to borrow any of the loans listed on your award offer, and if so, how much.
In considering the loan programs, please note that the Stafford Loan, the PLUS Loan, and the Grad PLUS Loan, are all regulated by the federal government. Accordingly, the interest rate for the Stafford Loan is fixed at 6.8% and the interest rate for the PLUS and Grad PLUS Loans are fixed at 8.5%. Private alternative loan rates and terms are more commercial in nature and vary accordingly. For parent borrowers of the PLUS, an additional review of the parent borrower’s credit history is required by the lender before the loan can be approved. Lenders may offer different benefits for borrowing through them but as business conditions and products are subject to change, Chaminade does not endorse the product(s) of any lender. Borrowers are advised to consult with a lender directly and exercise due diligence and care in their selection of a loan provider.
