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.
Monthly Payment Plan
As an alternative to payment in full at the beginning of each semester, Providence College offers an optional payment program for those who wish to pay monthly. This service is provided exclusively through Tuition Management Systems.
Under this program, families may budget their educational expenses in ten equal installments beginning June. Tuition, room, board, and fees for the upcoming academic year may be budgeted under this plan.
A nominal fee (i.e. less than $100) must be paid up front in order to participate in the monthly payment plan. This fee cannot be included in the total amount financed and there are no interest charges associated with this program.
Information and application forms for this program are mailed to all students in May. For more information, you may contact Tuition Management Systems directly at 1-800-356-8329, or the Office of the Bursar at (401) 865-2284.
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. For PLUS loans disbursed on or after July 1, 2008 parents have the option of beginning repayment on the loan either 60 days after the loan is fully disbursed (i.e. approximately March of the students’ spring semester) or not until 6 months after the dependent student on whose behalf the parent borrowed ceases to be enrolled on at least a half-time basis.
The Direct Parent PLUS loan program offered by the U.S. Department of Education is dually administered by The Office of Financial Aid and our Student Loan Office. The interest rate on Direct Parent PLUS Loans disbursed on or after July 1, 2008 is fixed at 7.90%. 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 a 4.204% processing fee deducted from the total loan amount you have requested to borrow.
If you are interested in the Direct Parent PLUS loan please visit www.studentloans.gov to begin your application and visit the Student Loan Office for more processing information.
Please note, Providence College requires all families who apply for a Parent PLUS loan must also complete a current year Free Application For Federal Student Aid (FAFSA) even if the family is not interested in receiving other federal student aid.
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 LIBOR or Prime rates by visiting http://www.bloomberg.com then selecting 'Market Data' and then 'Rates and Bonds.' From the menu, to the right of 'Rates and Bonds' select 'U.S. Treasuries'. 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. Families are encouraged to utilize the internet to research and compare different products. One such example of a search engine is Student Lending Analytics.
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).