Alternative Financing

When financial aid does not meet the full annual expense of your Lesley University program you may wish to pursue some form of alternative financing.  Below are some financing options that can help facilitate your Lesley University education.

Tuition Management Services (TMS) Payment Plans

Administered by the Lesley University Office of Student Accounts, TMS offers interest free monthly payment plans to help you manage the cost of your Lesley University education.  For additional information on the TMS payment plan or to enroll in a payment plan please visit www.afford.com or contact the Lesley University Student Accounts Office at (800) 999-1959 ext. 8760.

Federal Direct Parent Loan (Parent PLUS):

The Federal PLUS Loan is a federally guaranteed loan available to parents of dependent undergraduate students. Eligibility is based on credit worthiness. The interest rate on new Federal Direct PLUS Loans is currently fixed at 7.9%. The rate is set every July 1st, for the year.

Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years. Beginning July 1, 2008, parents now have the option to defer payments on the Parent PLUS loan while the undergraduate student on whose behalf they borrowed the PLUS loan is in-school and for a six-month grace period after the student graduates or drops below full-time enrollment. (Payments can also be deferred if the parents are themselves enrolled in college. They will need to submit an application for an in-school deferment.) Since the interest on the PLUS loan is not subsidized, it continues to accrue while deferred and is capitalized when the loan enters repayment. To request Parent PLUS Loan deferment, please call the Direct Loan Servicing Center at 1-800-557-7394.

As with the Federal Stafford Loan, Lesley University is now processing PLUS Loans through the William D. Ford Direct Loan Program. Effective for enrollment periods of Fall 2009 and later, Lesley College parents wishing to borrow PLUS loans will be borrowing directly through the U.S. Department of Education.

Lesley University does not include Parent PLUS loan eligibility on a student's award letter, but if a parent would like to apply for the PLUS loan he or she can submit a 2009-2010 Federal Direct Parent PLUS Loan Application [pdf] to the Lesley University Financial Aid Office. The parent borrower must also complete a Master Promissory Note (MPN), which can be completed online here by selecting "Complete New MPN for Parent PLUS Loan."

Federal Direct Graduate PLUS Loans

The Grad PLUS Loan is a federally guaranteed loan available to graduate students. Eligibility is based on credit worthiness. The interest rate on the Federal Direct Graduate PLUS Loan is currently fixed at 7.9%. Graduate students may borrow up to the cost of education minus the $20,500 in Stafford loans and other aid. Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years.  Students may defer repayment while they are in school, as long as enrollment is at least half-time per semester. There is no six-month grace period as there is with the Stafford Loan program. Since the interest on the PLUS loan is not subsidized, it continues to accrue while deferred and is capitalized when the loan enters repayment.

As with the Federal Stafford Loan, Lesley University is now processing PLUS Loans through the William D. Ford Direct Loan Program. Effective for enrollment periods of Fall 2009 and later, Lesley University graduate students wishing to borrow PLUS loans will be borrowing directly through the U.S. Department of Education.

Lesley University does not include Grad PLUS loan eligibility on a student's award letter, but if you would like to apply for a PLUS loan, please submit the documents below:

• 2009 - 2010 Federal Direct Graduate PLUS Loan Application [pdf] (or the 2008-2009 version [pdf], if the application is for Spring or Summer 2009 educational expenses), which should be submitted by mail or fax to the Lesley University Financial Aid Office.
• Master Promissory Note (MPN), which can be completed online here by selecting "Complete New MPN for Student Loans."
• Graduate PLUS Entrance Counseling, which can be completed online here.

Private Alternative Loans

Alternative loans are typically more expensive than Federal Stafford loans.  Research scholarship opportunities, grants, work programs, and Federal loan programs before borrowing from an alternative loan program. 

There are a wide variety of alternative loan products available to both students and parents.  We recommend researching your options thoroughly before applying. The list of private educational loan lenders available through the link below is not an exhaustive list. The lenders appear on the list simply because they have notified Lesley University that they will offer private educational loans for the 2009-10 academic year. Lesley University does not recommend any loan in particular and encourages you to widen your search to your state's lending agency, local bank, or credit union and then determine which product works best for you and your family. If you decide to use a lender or loan product not currently represented on this list, please notify Lesley University's Financial Aid Office so that your loan can be certified. 

Alternative Loan Options

As you research your alternative loan options, we encourage you to keep in mind the tips below.

Getting Started with Alternative Loans

1. Know your FICO score.

• The Higher the FICO score, the better the interest rate.
• To estimate your current FICO score, go to bankrate.com and use their FICO Score Estimator. You can also obtain your actual FICO score, but it will cost you a few dollars (myfico.com). Scores provide a snapshot and can change month to month.

2. Improve your FICO score.

• Obtain a FREE credit report at www.annualcreditreport.com and check for any errors.
• To increase your FICO score, pay bills on time, settle any past due accounts, pay down debt and reduce the percentage of your total credit card balances below 30% of total available credit.
• Don't close out a credit card account just to boost your score as it can have an immediate, short-term negative effect. Especially don't close out your oldest credit cards, because the longer history you have, the better your score.

3. Research your options but limit the number of applications.

• Every application for an alternative loan results in a "hard inquiry" being placed on your credit report. Several hard inquiries over 14+ days may reduce your overall credit score. Limit your application to one or two.  If you apply for more than one alternative loan, let us know which one you want as we will certify the first loan application we receive and may cancel subsequent requests.  

Questions to Ask

• Annual Percentage Rate (APR): The annual cost of your loan including the effect of any fees and charges in addition to interest; may be fixed or variable. Does the lender use PRIME or LIBOR to determine interest rates? (Those using LIBOR typically use the 3-month LIBOR rate.) Visit bloomberg.com for current Prime and LIBOR rates. NOTE: Variable rates are subject to change.
• Interest Capitalization: When is the interest capitalized (added to the principal)? Does this change during repayment? NOTE: Making interest-only payments on an alternative loan while in school will drastically reduce the overall cost of the loan.
• Calculate the total cost of the loan: Are there introductory rates that increase over time? Are there origination fees that are deducted from the loan before the loan funds are sent to Lesley University? Are there any fees added after the entire loan has been disbursed?
• Loan Limits: Does the loan have an annual or aggregate limit? If so, can you afford to borrow within these limits?
• Repayment: Does repayment begin immediately or after you graduate or leave school?
• Repayment Period: How long is the repayment period in which you repay the loan? Are there choices? (10 years vs. 20 years, etc.)
• Repayment Incentives: Does the alternative loan reward borrowers who make on-time payments? Are there any penalties for paying early?
• Lender Stability: How long has the organization been involved in providing student loans? Will they still offer alternative loans throughout the next 4 years? Does the organization sell its loans? If so: how often, to whom, and with what consequences?
• Customer Service: What special services does the organization offer to borrowers, including cooperation with the school, electronic funds transfer, toll-free help lines, and money management tools?