Columbia University Student Financial Services

Eligibility

Parents with good credit histories are eligible to borrow on behalf of dependent undergraduate students registered at least half time.The borrower must be a U.S. citizen or eligible non-citizen with a valid Social Security number, pass a credit review, and must not be in default or owe a repayment to any student financial aid program.

Dependency Status

When you file a FAFSA, the financial information you report will be used to determine if you need financial aid. That information will be used to determine whether you receive any type of need-based federal student aid and if eligible, how much federal financial aid you will receive. You’ll need to determine whose information to report on the FAFSA—yours, if you’re an independent student; yours and your spouse’s, if you’re an independent and married student; or yours and your parents’ if you are a dependent student. When you apply for federal student aid, your answers to the questions in Step 3 of the paper FAFSA, or in Step 2 of the electronic online FAFSA, determine whether you are considered a dependent or independent student.

Dependent students must report their parents’ income and assets on the FAFSA as well as their own. If you’re considered a dependent student, your parents are expected to contribute toward the cost of your education. Federal student aid programs are based on the concept that a dependent student’s parents have the primary responsibility for paying for their child’s education.

For the 2007–08 academic year, if at least one of the following applies to you, you are an independent student:

• You were born before Jan. 1, 1984
• You are or will be enrolled in a master’s or doctoral degree program (beyond a bachelor’s degree) at the beginning of the 2007-08 academic year*
• You’re married on the day you apply (even if you are separated but not divorced)
• You have children who receive more than half their support from you
• You have dependents (other than your children or spouse) who live with you and who receive more than half their support from you at the time you apply and through June 30, 2008
• Both your parents are deceased, or you are (or were until age 18) a ward or dependent of the court
• You are currently serving on active duty in the U.S. Armed Forces for purposes other than training
• You’re a veteran of the U.S. Armed Forces (A “veteran” includes students who attended a U.S. service academy and were released under a condition other than dishonorable. For more detail on who is considered a veteran, see the explanatory notes on the FAFSA.)

If none of these items apply to you, you are a dependent student.

Credit Criteria

Federal standards of creditworthiness are substantially more flexible than those required under private loan programs. You must pass a credit review and you must not have adverse credit history, defined as:

• A current 90-day delinquency
• Debt discharged in bankruptcy during the past five years
• Evidence of a default, foreclosure, tax lien, repossession, wage garnishment, or write-off of a Title IV debt during the past five years

If you do not meet the credit criteria, you can apply with an Endorser, who must meet the credit criteria. The Endorser promises to repay the loan if the borrower fails to do so as agreed. PLUS Loan credit decisions are good for 180 days.

Borrowing Limits

The maximum amount that may be borrowed in a year is the student’s cost of attendance minus any financial aid received.

Interest Rate

As of July 1, 2006, this rate is fixed at 8.5%.

Repayment Period

Generally, the repayment period is 10 years. There are, however, various loan repayment and consolidation programs available, either through a lender or through the federal government, that may extend the period of time depending on the program or your circumstances. For more information on repayment, contact the lender or your financial aid office.

Monthly Payments

Monthly payments are calculated based on the amount owed at the start of repayment. For more information, contact your lender.

Fees

The federal government assesses an origination fee of 3%, which is deducted from each disbursement of the loan. The guarantee agency assesses a Federal Default Fee of up to 1%, but all of Columbia University’s suggested lenders pay this fee on the borrower’s behalf.

First Payments

There is no grace period on PLUS loans (as there is on Stafford and private loans). In general, PLUS Loans enter repayment after the final disbursement of the loan, and the first payment is due within 60 days.

Application

Parent PLUS Loan applicants must submit a completed Application and Promissory Note for Federal PLUS Loan to their financial aid office.

Check with your financial aid office for information about specific deadlines that may be set by the School or the federal government.

Disbursement

Loan funds are usually sent electronically to Columbia University for disbursement to the student account. If sent as a check, co-payable to the borrower and Columbia University, the check must be endorsed for deposit to the student’s account.

Suggested Lenders

Please see the Suggested Lenders section.

Other Lenders

Loan Comparison Resource