Financing Options
At Clark University, we realize that preferences and needs for additional resources for financing your education are as individual as each student. We strongly encourage families to consider all the ways to pay for an education before applying for any private alternative loan. Federal loans usually offer borrowers lower interest rates and have more flexible repayment options than most private loans.
The best way to limit debt is to consider the Interest-Free Monthly Payment Option that is offered to Clark students through Tuition Management Systems. You should either call TMS at 800-722-4867 or view their website at www.afford.com/clarku to obtain more information. If the payment plan is not a viable option for you, consider financing your balance by applying for a Federal Direct Grad PLUS loan or some other type of private educational loan program.
The William D. Ford Direct Grad PLUS Loan
The Federal Direct Grad PLUS Loan is a fixed low interest rate loan which allows a graduate student to borrow funds for educational expenses. The fixed interest rate on the Federal Direct Grad PLUS Loan is 7.9%. Borrowers do not need to select a specific lender through the Direct Grad PLUS Loan Program since the lender is the U.S. Department of Education. A borrower must pass a PLUS Loan credit check and must not have adverse credit history. For an applicant who is unable to meet the credit criteria, there is an option to appeal the decision or the applicant may be able to borrow with a credit worthy endorser. The 4% origination fee associated with this loan is offset by a 1.5% up-front rebate resulting in a net disbursement approximately 2.5% less than the amount borrowed. For additional information on the Federal Direct Grad PLUS Loan, please view or print the Federal Direct Grad PLUS Loan Q&A.
To apply for a Federal Direct Grad PLUS Loan, please view or print the instructions and then print the Clark University Grad PLUS Loan Request Form. Once completed, this request form must be either mailed or faxed directly to the Office of Financial Assistance. If you have not completed the FAFSA to apply for federal student aid, you must do so before Clark University will process your request for a Federal Direct Grad PLUS Loan. Requests for a Federal Direct Grad PLUS Loan are processed over the summer for the upcoming academic year.
Private Educational Loan Programs
Private educational loan programs are another option that may meet the financing needs of some of our students. The borrower is either a credit-worthy student borrower and/or a co-borrower. Both the interest rates and the fees may vary from program to program, often based on the borrower’s credit history and are not always fixed rates. The maximum loan amount that can be borrowed each year is up to the total cost of attendance minus financial aid awarded to the student. Clark University does an annual review of alternative loan providers and their products specifically reviewing interest rates, repayment options, borrower benefits, and customer service. Based on our review, we provide a list of suggested alternative loan programs. However, we encourage our students to do their own research to find a product that best meets their needs. All borrowers have the option to select a private educational loan from any lender or agency they choose. Clark University will process any private loan application submitted to the University. Additionally, student borrowers should consider utilizing their full eligibility through federal student loan programs before borrowing a private educational loan.
The MEFA Graduate Loan is offered through the Massachusetts Educational Financing Authority. MEFA is a non-profit self-financing state authority that serves students in Massachusetts and out-of-state students pursuing higher education in Massachusetts. The MEFA Graduate Loan is a private educational loan offered at a fixed interest rate of 8.89%, with a 4% origination fee if using a co-borrower and 7% origination without a co-borrower. There is a 15 year repayment plan. The MEFA Graduate Loan requires a credit-worthy borrower and all applicants must be either a U.S. citizen or permanent resident. Applicants may borrow up to the cost of attendance minus any financial aid the student will receive. For more information about the MEFA Graduate Loan, you should view www.mefa.org or call MEFA at 800-449-6332.
The Smart Option Student Loan (funded by Sallie Mae) can be a solution for students who still need funds after they have maximized their eligibility through the federal student loan programs. With this loan, the student can borrow up to the full cost of education less any other financial aid the student has received. This loan program is designed to help shorten the amount of time it takes to pay off the loan by featuring interest-only payments while the student is in school. The Smart Option Student Loan is a new loan this year and will be replacing the Signature Student Loan. For more information on the Smart Option Student Loan, you should view www.salliemae.com or call 800-695-3317.
The Chase Select Loan program is a private loan program for undergraduate and graduate students. It can be used for any school approved educational expenses. With this loan the student can borrow up to the cost of attendance minus financial aid received by the student. There is a deferred repayment option, an interest-only repayment option, and an immediate repayment option with the Chase Select Loan program. For additional information on the Chase Select Loan, you should view www.ChaseSelectLoans.com or call 800-306-0868.
Wells Fargo Collegiate Loan is one of the private loan programs offered by Wells Fargo. This loan program is for undergraduate and graduate students attending school full-time, half-time, and less than half-time. The standard repayment terms for this loan is 15 years and borrowers make no payments while in school; both payment and interest are deferred. This means that interest will begin to accrue while the student is in school but no payments are required during the time the student is enrolled. The student can borrow up to the cost of attendance minus any financial aid the student has been awarded. For additional information on the Wells Fargo Collegiate Loan, you should view www.wellsfargo.com/student or call 800-658-3567.
The Citizens Bank TruFit Student Loan is a school certified private loan option for undergraduate and graduate students. This is a new private loan option for the 2009-2010 academic year and offers the choice of repayment to the borrower. Students can select either an immediate, interest only, or deferred payment option and may borrow up to the cost of education less any financial aid awarded to the student. For more information on this loan program or to apply for the loan, you may go to www.citizensbank.com/trufitstudentloan or call 800-708-6684.
The best way to decide what option meets your needs is to compare the terms of each loan program. To assist you, we have created a loan comparison chart which briefly describes the components of each program.