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Types of Loans
Federal student loans and private education loans are available to students to help pay for their education but remember they must be repaid. Federal loans, guaranteed by the federal government, offer lower fixed interest rates, generous repayment plans, no prepayment penalties and no credit checks (except for parent PLUS Loans). The terms and conditions of loans programs are set by federal regulations.
In contrast, private loans generally have higher variable interest rates that may substantially increase the total amount of loan debt. The interest rates depend on the borrower credit score and some have prepayment penalty fees. Burlington College does not have a suggested lender list for private loans but will supply contact information upon request.
Federal Perkins Loans are low interest (5%) loans awarded to students with high need. Repayment of principal and interest begins nine months after graduation or dropping to less than half-time enrollment. Awards are generally $1,000 per year. Award amounts are based on need and enrollment status. Click Here for more information.
Federal Direct Stafford Loans are available to eligible undergraduate students enrolled at least half-time. This program allows borrowing of limited amounts of interest-free loans by qualified students during their enrollment. Repayment and interest accrual begins six months after graduation or dropping to less than half-time enrollment. The Interest Rate for 2013-2014 is 3.86%.
Federal Direct Unsubsidized Stafford Loans are loans for students who do not qualify for all or part of the subsidized loan described above. In addition, all dependent undergraduate students enrolled greater that half time are able to borrow $2,000 per year. Interest on Unsubsidized Federal Stafford Loans accrues to the borrower as of the disbursement date. The borrower has the option of paying the interest as it accrues. Any accrued interest that is outstanding at the end of the six-month grace period is added to the principal balance of the loan (capitalized). The Interest Rate for undergraduate students for 2013-2014 is 3.86%. Click Here for more information on Federal Direct Stafford Loans. the Interest Rate for Graduate students for 2013-2014 is 5.41%.
Federal Direct PLUS Loans
This is a borrowing option for the parents of undergraduate students and Graduate students. The interest rate on parent PLUS Loans for 2013-2014 is fixed at 6.41% with a loan origination fee. the interest rate on Graduate PLUS Loan for 2013-2014 is fixed at 5.41%. Repayment may be deferred for up to six months after the student graduates or leaves school. A credit check is required to determine eligibility for the PLUS Loan Program. The borrower must complete a request form available on our web site. Loan limits are up to the cost of the education minus other financial assistance.
Private Education Loans are an option for dependent students whose parents are not pursuing the Parent PLUS loan or for independent students who need additional loans to supplement other financial assistance. Burlington College recommends that dependent students consider the benefits of the federal Parent PLUS loan before borrowing a private student loan. Federal loans are generally more attractive than alternative loans. We strongly recommend you apply for financial aid and maximize your federal loan borrowing before borrowing private loans.
Financial Aid at Burlington College
351 North Avenue
Burlington, Vermont 05401
E-mail: finaidburlington [dot] edu