On this page we are offering you basic information about the most popular product types that our families use to finance their education at Providence College . The information here is generic and meant to guide you towards the kind of product type you are most interested in pursuing and best meets your needs. Once you have decided on a product type then you will be able to move through the rest of the topics on the right hand side to find a specific product and lender that is right for you.
Parent PLUS Loans
Your parent may consider applying for a Parent PLUS Loan to help manage the difference between your direct charges and financial aid you are receiving.
These loans are in the parents’ name on behalf of the student based on the credit history of a parent. Repayment for the principal amount and any accrued interest for this type of loan begins approximately 60 days after the second disbursement of funds (i.e. approximately March of the students’ spring semester). Interest is charged on a Parent PLUS Loan from the date of the first disbursement until the loan is paid in full. In addition, there is usually an upfront processing fee valued anywhere from 2% - 4% deducted from the total loan amount you have requested to borrow. Lastly, interest rates on Parent PLUS Loans are reset every July 1.
Parents may choose to participate in the Direct Parent PLUS loan program offered by the U.S. Department of Education (administered by our Student Loan Office ). The interest rate on Direct Parent PLUS Loans disbursed on or after July 1, 2007 is fixed at 7.90%. If you were interested in the Direct Parent PLUS loan you could email the Student Loan Office at studentloans@providence.edu for a pre-application or visit our Forms section on the left hand side and download a copy.
Otherwise, parents may choose to participate in the FFEL Parent PLUS Loan program that is administered by authorized lending authorities or banks. The interest rate on FFEL Parent PLUS Loan disbursed on or after July 1, 2007 is fixed at 8.50%. Please keep in mind, however, that authorized lending authorities and banks that administer FFEL Parent PLUS Loan may be able offer upfront incentives that could lower the interest rate and/or fees. If you were interested in the FFEL Parent PLUS Loan you would need to contact the lending agency you wish to use, initiate the process with them and following their application and processing guidelines. A good place to start FFEL Parent PLUS research would be your home state lending authority (see below) since they may be able to offer you incentives based on your state of residence.
Rhode Island Residents can contact RISLA (Rhode Island Student Loan Authority) at www.risla.com.
Massachusetts Residents can contact MEFA (Massachusetts Educational Financing Authority) at www.mefa.org.
Vermont Residents can contact VSAC (Vermont Student Assistance Company) at www.vsac.org.
New Hampshire can contact the NHHEAF Network at www.nhheaf.org.
Maine Residents can contact FAME (Finance Authority of Maine) at www.famemaine.com.
Pennsylvania Residents can contact PHEAA (Pennsylvania Higher Education Assistance Agency) at www.pheaa.org.
New Jersey Residents can contact HESAA (New Jersey Higher Education Student Assistance Authority) at www.hesaa.org.
Alternative Student Loans
You may consider applying for an alternative student loan product to help manage the remaining balance on your billing statement after your financial aid has been applied.
Students are the primary borrower for this group of loans. A credit worthy cosigner is required which in most cases is a parent or guardian. Often lenders will relieve cosigners of their obligations to this loan after the student has entered repayment and made a specified number of on-time payments. This type of loan acts more like a traditional student loan where the principal amount you borrow does not become due until the student graduates or drops below half-time. However, interest will accrue on this loan while the student is in school and it is suggested that it be paid on a quarterly basis to the lender who holds the loan. In addition, there could be an upfront processing fee valued anywhere from 1% - 3% deducted from the total loan amount you have requested to borrow.
Interest rates change (i.e. variable) on a quarterly basis for alternative student loans since they are driven by the LIBOR (London Interbank Offered Rate) or Prime rate. You can find current the LIBOR or Prime rate by visiting http://www.bloomberg.com/markets/rates/index.html. LIBOR and Prime rates represent the minimum baseline interest rate. Once you have chosen a lender and they check your credit (or assess your income to debt ratio), your interest rate may have an additional 2%-4% on top of the baseline LIBOR or Prime rate. Please also keep in mind that alternative loan products have NO LIMIT on how high their annual interest rate can go unless the product you have selected is offering a fixed interest rate.
If you are interested in applying for one of these loans, you must contact the lender of your choice to begin the application process usually by going to their website and applying online. Once you have a loan approval, the lender will forward us the information for enrollment and cost of education certification. Once certification is complete and all other paperwork required by the lender has been satisfied, the loan funds will be released to us on or after the beginning of each semester.
It takes approximately 21 business days to complete the entire application with the third party lender and Providence College . We strongly encourage you to make sure your application has been initiated in enough time to ensure that payment is pending or received by the date your student bill is due (August 15 for the Fall semester and December 15 for Spring semester).