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Student Loans

Get Help Financing Higher Education: Student Loans Still Available

Deval Patrick

Dear Massachusetts resident:

We know the turmoil in the national economy is placing added burdens on families and communities across the Commonwealth.

Unfortunately, the student loan sector and, therefore, students and their families, have been hit especially hard by recent capital market shifts. And although, thankfully, the Massachusetts Educational Financing Authority recently announced that it has secured funding to provide fixed-interest loans for the coming school year, I am still troubled by the national economic picture and the costs of attending college.

It is important to know that there are still many loan alternatives available to students for this coming school year.

In an increasingly global economy, it is more important than ever for our students to be able to attend the higher educational institution of their choosing. With that in mind, members of my team have compiled a list of resources to help students and families locate the information they need to finance education this fall and beyond.

While national markets will eventually recover, bringing down the price of higher education is a long-term challenge that will require long-term commitment. This Commonwealth remains one community, sharing responsibility for creating a shared prosperity -- we are all in this together.

Sincerely,

Deval L. Patrick
Governor

MEFA Answers and Assistance

UPDATE: Below, please read the latest press release from the Massachusetts Education Financing Authority.

Boston -- September 16, 2008 -- The Massachusetts Educational Financing Authority today announced it will immediately begin offering affordable, fixed interest rate MEFA Loans to families of undergraduate and graduate students for academic year 2008-2009 after successfully raising $400 million in financing through the sale of bonds.

“On behalf of MEFA and the families we serve, I extend our gratitude to Governor Patrick and his administration for their strong support and cooperation through this unprecedented time in student lending. The Governor's advocacy on behalf of MEFA strengthened our position in the capital markets. We are pleased to offer to Massachusetts families and students the MEFA Loan with a rate lower than that of alternative loans,” said Thomas Graf, Executive Director of MEFA.

For all questions related to this announcement, please call MEFA’s helpline toll-free at 800-449-MEFA (6332 ) from 8 a.m. to 10 p.m. Monday to Friday, and 9 a.m. to 3 p.m. Saturday. You should also contact your college or university financial aid staff with questions and concerns.

In the meantime, MEFA has provided 2 primary recommendations for those seeking loan replacement:

  1. Exhaust your use of federal student and parent loans (including Stafford loans and PLUS: see "Types of Federal Loans" below).
  2. Contact your college or university to discuss alternative payment options, such as payment plans and private education loans.
    For a list of contact information for financial aid offices at all colleges and universities in Massachusetts, please click here.

You may also wish to learn more about the Massachusetts Office of Student Financial Assistance:

 

Below, you will find information and resources about all aspects of the student loan process.

Disclaimer: With the exception of state or federally sponsored services, the Commonwealth of Massachusetts in no way endorses the sites, services or information that are linked to this page.

Student Loan Basics

Every year, the U.S. Department of Education awards more than $80 billion in loans, grants and campus-based aid that helps millions of students and their families afford postsecondary education.

There are many different kinds of loans available to students, both public (via the government) and private (via a private company or corporation). Because federal loan interest rates are almost always fixed and capped, all students should check their federal aid eligibility before applying for private loans. During this process, your most important task is to make sure you are fully aware of all terms, fees and conditions before signing or agreeing to anything.

As you make decisions, we urge you to work closely with your college or university financial aid staff to understand all options available to you.

If you need additional assistance or advice, do not hesitate to call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243) to speak with a representative. (Hearing or Speech Impaired - TTY 1-800-730-8913 or 1-319-337-5665).  You can also visit them online by clicking here.

 

Eligibility Requirements

To receive federal aid, students generally must:

  • qualify for financial need (except for certain loans);
  • have a high school diploma or a General Education Development (GED) certificate;
  • be enrolled in an eligible degree program;
  • be a U.S. citizen or eligible non-citizen;
  • have a valid Social Security Number.

That said, the U.S. Department of Education advises all students to apply for federal aid to determine their status.

 

Getting Started

To begin this process, prospective aid recipients must complete and submit a Free Application for Federal Student Aid (FAFSA) to the U.S. Department of Education. The FAFSA website guides you through locating all necessary information (W-2 forms, bank statements, etc.), and allows you to submit your application electronically or via regular mail.

Once all of your information is submitted, your eligibility and need will be assessed. After this review, your Student Aid Report (SAR) will be forwarded to your email address soon after you file the FAFSA online. If you file a paper FAFSA by mail and do not provide an email address, you should receive a paper SAR within three weeks.

Obtaining an SAR report is critical to acquiring and maintaining student aid. Click here for any questions about FAFSA.

 

Types of Federal Loans

Some of the most common types of federal loans are:

Stafford Loans (FFELs and Direct Loans): By far the most common type of federal loans, so-called "Stafford" loans are available both as subsidized and unsubsidized loans. Under subsidized loans, which are need-based, all interest is paid by the government while the student is enrolled in school (and in certain other periods). Unsubsidized loans are available regardless of financial need, but students are responsible for all interest (although interest can be deferred until after graduation). Stafford Loans feature capped interest rates of 6.8% or less.

Learn more about Stafford loans:

PLUS Loans:  Under the Federal PLUS loan program, parents and graduate students can borrow up the cost of attendance for college or graduate school.  PLUS loans are offered through the FFEL and Direct Loan programs and feature fixed interest rates  that are competitive with many private loan programs (7.9% through the Direct Loan program and 8.5% through the FFEL program).  Interest on the loans accrues while the student is in school, but repayment on the loans can be deferred until 6 months after the student leaves school.

PLUS loans are subject to a credit check, but if a parent is denied, the student for whom the loan is being sought can receive increased unsubsidized Stafford Loans.  Students and families should contact their college's financial aid office for more information about the program.

Learn more about PLUS Loans:

Perkins Loans:  Students with "exceptional" financial need qualify for Perkins loans. Perkins loans are similar to subsidized Stafford loans because the interest is paid by the government while the student is in school and for 9 months after graduation, but are much more flexible in terms of amount and repayment schedule, featuring a capped interest rate of 5%.

Learn more about Perkins loans:

“Professional Judgment” Adjustments for Federal Loans:  Under Federal law, college financial aid officers may use their discretion to increase Federal aid eligibility, on a case-by-case basis, to students and parents who face special circumstances, Special circumstances include recent unemployment of a family member, unusually high health care costs, medical and dental expenses not covered by insurance, and tuition payments for elementary and secondary school,  Students and families should contact their college’s financial aid office to learn more about this option.  Proper documentation of special circumstances is required for adjustments to be made.

 

Types of Federal Grants

Pell Grants:  Federal Pell Grants are need-based and, unlike loans, do not have to be repaid. Although the amount of each grant depends on a number of factors, Pell Grants for the 2008–2009 award year have been capped at $4,731.

Learn more about Pell Grants:

Academic Competitveness Grants and National SMART Grants:  Academic Competitiveness Grants are available to low-income students who have completed a rigorous high school curriculum (as recognized by the Secretary of Education) and are in their first or second year of college.  National SMART Grants are available to low-income students who in their third or fourth year of college who are pursuing a major in science, technology, engineering and other science fields, a critical foreign language (as determined by the Secretary of Education) and has maintained at least a 3.0 GPA.

To learn more about ACG and SMART grant eligibility:

 

Types of State Loans

The following are the most common types of state loans:

 

Types of Scholarships

Scholarships are another vital resource for students who do not meet federal eligibility requirements or are looking for additional financial aid. Scholarships are awarded based on a wide variety of criteria, including (but not limited to) academic merit, athletic ability, and financial needs.

During the college application process, all high school students should ask their guidance counselor about scholarship opportunities.

  • About.com College Scholarship Resources: A compilation of advice and information about various scholarships.
  • FastWeb.com: A well-known scholarship search site, FastWeb asks students to complete a detailed questionnaire, then uses this information to search for matching scholarships.
  • FinAid.org: Another well-known scholarship and college aid site.

 

Private/Alternative Loans

Before signing a private loan, please ensure that you have exhausted all federal and state grant and loan options.

If you decide to borrow a private student loan, compare interest rates and terms carefully. Many private education loans have variable interest rates, which may change unexpectedly, and tiered interest (so-called "tiered pricing") rates, the prices of which are based on your credit score.

In addition, in recent years fraudulent loan scams have become increasingly widespread and sophisticated. Especially when dealing with private lenders, NEVER send or wire money in advance of a thorough review of the lender and the loan terms. If you continue to have doubts about the legitimacy of a provider, please contact the Federal Bureau of Investigation (FBI).

To begin the private loan borrowing process, you may contact your college or university financial aid office or your own financial provider (bank, credit card company, etc.) to get a sense of your options.

You may also wish to review the follow compilations of useful links and loan providers:

 

Compare Rates

Finally, the following sites will help you compare different private loan rates and choose one that best suits your needs.

 

 

 

 

 

 

Contact Information for all Massachusetts College and University Financial Aid Offices

Atlantic Union College 
338 Main Street
South Lancaster, MA 01561
(978) 368-2280 
sboucher@atlancticuc.edu

Babson College 
Forest Street
Babson Park, MA 02457
(781) 239-4219 
sfs@babson.edu

Bay Path College 
588 Longmeadow Street
Longmeadow, MA 01106
(413) 565-1261 
finaid@baypath.edu

Becker College 
61 Sever Street
Worcester, MA 01609-2195
(877) 523-2537 x 242 
dlawrie@beckercollege.edu

Bentley College 
175 Forest Street
Waltham, MA 02452-4705
(781) 891-3441 
finaid@bentley.edu

Berklee College of Music 
1140 Boylston Street
Boston, MA 02215
(617) 747-2274 
financialaid@berklee.edu

Boston College 
140 Commonwealth Avenue
Chestnut Hill, MA 02467-3934
(617) 552-3300 
studentservices@bc.edu

Boston University
881 Commonwealth Avenue
Boston, MA 02215
(617) 353-2965
finaid@bu.edu

Brandeis University 
415 South Street
Waltham, MA 02454
(781) 736-3700 
sfs@brandeis.edu

Caritas Labouré College 
2120 Dorchester Avenue
Boston, MA 02124-5698
(617) 296-8300 
finaid@laboure.edu

Clark University 
950 Main Street
Worcester, MA 01610-1477
(508) 793-7478 
finaid@clarku.edu

College of the Holy Cross
1 College Street
Worcester, MA 01610-2395
(508) 793-2265 
financialaid@holycross.edu

Curry College 
1071 Blue Hill Avenue
Milton, MA 02186
(617) 333-2146
fin-aid@curry.edu

Dean College 
99 Main Street
Franklin, MA 02038-1994
(508) 541-1518
financialaid@dean.edu

Elms College 
291 Springfield Street
Chicopee, MA 01013 
(413) 594-2761 
finaid@elms.edu

Emerson College 
120 Boylston Street
Boston, MA 02116-4624
617-824-8655 
finaid@emerson.edu

Emmanuel College
400 The Fenway
Boston, MA 02115
(617) 735-9938 
financialservices@emmanuel.edu

Endicott College
376 Hale Street
Beverly, MA 01915
(978) 232-2060 
finaid@endicott.edu

Fisher College
118 Beacon Street
Boston, MA 02116
(617) 236-5470 
flauder@fisher.edu

Gordon College
255 Grapevine Road
Wenham, MA 01984
(978) 927-2300 
sfs@gordon.edu

Hampshire College
893 West Street
Amherst, MA 01002
(413) 559-5484 
kmmFA@hampshire.edu

Harvard University
Cambridge, MA 02138
(617) 495-1581 
pacholok@fas.harvard.edu

Hebrew College
160 Herrick Road
Newton Centre, MA 02459
(617) 559-8618 
iregosin@hebrewcollege.edu

Lasell College 
1844 Commonwealth Avenue
Newton, MA 02466
(617) 243-2227 
finaid@lasell.edu

Lesley University
29 Everett Street
Cambridge, MA 02138-2790
(617) 868-9600 
finaid@lesley.edu 

Massachusetts College of Pharmacy and Health Sciences 
179 Longwood Avenue
Boston, MA 02115
(617) 732-2199 
carrie.glass@bos.mcphs.edu

Massachusetts Institute of Technology 
77 Massachusetts Avenue
Cambridge, MA 02139
(617) 258-8600 
ssc@mit.edu

Merrimack College 
315 Turnpike Street
North Andover, MA 01845
(978) 837-5186 
financialaid@merrimack.edu

Mount Ida College 
777 Dedham Street
Newton Centre, MA 02459
(617) 928-4783 
finaid@mountida.edu

New England College of Optometry 
424 Beacon Street
Boston, MA 02115
(617) 236-6275 
rublec@neco.edu

New England Conservatory of Music 
290 Huntington Avenue
Boston, MA 02115
(617) 585-1110 
admission@newenglandconservatory.edu

Newbury College 
129 Fisher Avenue
Brookline, MA 02445
(617) 730-7000 
info@newbury.edu

Nichols College 
123 Center Road
P.O. Box 5000
Dudley, MA 01571-5000
(508) 213-2378 
finaid@nichols.edu

Northeastern University 
360 Huntington Avenue
Boston, MA 02115 
(617) 373-7100 
sfs@neu.edu

Olin College of Engineering 
Olin Way
Needham, MA 02492
(781) 292-2300
info@olin.edu

Pine Manor College 
400 Heath Street
Chestnut Hill, MA 02467
(800) 762-1357 
finaid@pms.edu

Regis College 
235 Wellesley Street
Weston, MA 02493-1571
(781) 768-7180 
finaid@regiscollege.edu

Simmons College 
300 The Fenway
Boston, MA 02115
(617) 521-2001 
financialaid@simmons.edu

Smith College 
Elm Street
Northampton, MA 01063
(413) 585-2530 
sfs@smith.edu

Springfield College 
263 Alden Street
Springfield, MA 01109
(413) 748-3108 
finaid@spfldcol.edu

Stonehill College 
320 Washington Street
Easton, MA 02357
(508) 565-1088 
finaid@stonehill.edu

Suffolk University 
8 Ashburton Place
Boston, MA 02108
(617) 573-8470 
finaid@suffolk.edu

Tufts University 
Medford, MA 02155
(617) 628-5000 
finaid@tufts.edu

Urban College of Boston 
178 Tremont Street
Boston, MA 02111
(617) 348-6359 
information@urbancollege.edu

Wellesley College
106 Central Street
Wellesley, MA 02481
(781) 283-2360 
finaid@wellesley.edu

Wentworth Institute of Technology
550 Huntington Avenue
Boston, MA 02115
(617) 989-4590 
ssc@wit.edu

Western New England College 
1215 Wilbraham Road
Springfield, MA 01109
(413) 796-2080 
finaid@wnec.edu

Wheaton College 
26 East Main Street
Norton, MA 02766
(508) 286-8232 
sfs@wheatonma.edu

Wheelock College 
200 The Riverway
Boston, MA 02215
(617) 879-2206 
finaid@wheelock.edu

Williams College 
Williamstown, MA 01267
(413) 597-4181 
finaid@williams.edu

Worcester Polytechnic Institute 
100 Institute Road
Worcester, MA 01609
(508) 831-5469 
finaid@wpi.edu

 

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