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Comparing Alternative and PLUS Loans
Question How much can I borrow? Cost of attendance (determined by the Financial Aid Office) less other aid received.
For most loans, cost of attendance (determined by the Financial Aid Office) less other aid received.
Do I have to file the FAFSA? Yes.
No, but if you haven't filed a FAFSA, you will need to complete the RU Information sheet in addition to the bank loan application.
Is the loan in the student's name? No, this loan is taken out in the parent's name. Yes, but typically requires a co-signer. When does repayment begin? Sixty days after disbursement. There are provisions that a lender can grant forbearance (at the parents request) while the student is in school at least 1/2 time.
Most loans allow students to begin repayment after they leave school. However, interest accumulates while the student is in school and is added to the principal. Most lenders will allow students to make interest payments before repayment begins if they choose.
Can the loan be consolidated? Parent loans can be consolidated under federal consolidation. No, not under federal consolidation. Students who have Federal Stafford Loans in addition to Alternative Loans will have loan payments for each loan program. Some lenders do have consolidation options, but not under federal consolidation. What is the interest rate? Fixed at 8.5%. Variable monthly or quarterly interest rate indices. Most of these loans do not have a cap. Is there capitalization of interest? Yes, once at repayment. Yes, can be annually, monthly, or once at repayment. Is a credit check required? Yes Yes Does the loan require a debt-to-income qualification? No May be required. Is income verification required? No May be required. Can the loan be discharged upon the death or permanent disability of the borrower? Yes. Varies by lender. Does the loan have generous repayment options with deferments and forbearances? Yes. Limited options. Varies by Lender. Can I apply on the web? Yes Yes, for most lenders. How do I apply or find out more? Click on Plus. Click on Alternative Loan.