Loans and Financing Options
- Federal Direct Student Loans
- Federal Direct PLUS Loans
- Private Educational Loans
- Other Financing Options
Federal Direct Student Loans
The Federal Direct Stafford Loan is available to U.S. citizens and permanent residents to assist with paying college costs. The type of Direct Loan a student is awarded (subsidized or unsubsidized) is based on results of the FAFSA and will be listed on your Financial Aid Award Notification each year.
Requirements for Borrowing the Federal Direct Loan
All new borrowers (including transfer students) of a Federal Direct Stafford/Ford Loan are required to complete entrance loan counseling and the Federal Direct Loan Master Promisory Note before their Federal Direct Loans can be disbursed.
If you have questions about your promissory notes or loan counseling, please contact the Office of Financial Aid at 309-341-7149. For more information about Federal Direct Loans, visit "Types of Aid" on the Federal Student Aid site. Information regarding your personal Direct Loans can be accessed on the Direct Loan Servicing Center site.
Federal Direct PLUS Loans
For Parent Borrowers who are U.S. Citizens and Permanent Residents
Parents of dependent students may apply for a Federal Direct PLUS Loan (Parent Loan) to help pay college costs. A parent who has no adverse credit history may borrow up to the cost of education each year, less any financial aid received by the student. The interest rate for this loan is fixed at 6.41%. Repayment begins within 60 days after the final disbursement of the loan, which typically occurs in March for students enrolled the full academic year. Parents must apply each year to borrow a PLUS loan.
How to Apply
To initiate an application for a PLUS Loan, select and print a request form for the appropriate school year:
This form should be completed and signed by one parent and sent to the Knox College Office of Financial Aid via e-mail, fax, or mail. If you need help completing the form or would prefer to receive one by mail, contact the Office of Financial Aid at 800-678-KNOX or 309-341-7149. If you are approved for the PLUS loan, instructions will be sent regarding completion of the Master Promissory Note.
If Your PLUS is Denied
Dependent students whose parents have been denied eligibility for a Federal Direct PLUS loan have expanded loan limits under the unsubsidized Direct Loan program. Depending on their college costs and financial aid, these students may borrow the maximum Direct Loan limits, plus: $4,000 for the first two years of undergraduate study and $5,000 for subsequent years of undergraduate study. For more information about Federal Direct Loans, visit "Types of Aid" on the Federal Student Aid site. The Office of Financial Aid will notify you and your student of the additional loan eligibility if the Federal PLUS Loan is denied.
Information on deferment and repayment options is available on the Federal Student Aid PLUS Loan site.
Private Educational Loans
U.S. Citizens, Permanent Residents, and International Students
Students and their families may be interested in private loan options as a supplement to federal loans. Private loans may be available to students who have no adverse credit history and have a credit-worthy co-signer. We encourage parents and students who seek private long-term financing to do some "comparison shopping" in order find the best terms for their particular financial circumstances. It is advised that private loans be used after the student's Federal Direct Loan eligibility has been exhausted.
Below is an alphabetical listing of private loan programs Knox students have borrowed through in the past.
|Boeing Employees Fed. Credit Union||www.becu.org||800-233-2328|
|Citizens Equity First Credit Union||www.cefcu.com||800-542-3328|
|Day Air Credit Union||www.dayair.org||866-614-7813|
|Fifth Third Bank||www.53studentloans.com||800-972-3030|
|First Tech Federal Credit Union||www.firsttechfed.studentchoice.org||800-236-7991|
|Union Federal Savings Bank||www.unionfsb.com||866-513-8445|
The payment plan option -- offered through Tuition Management Systems (TMS) -- is a convenient way to pay if your family intends to use savings and/or income to meet all or part of your educational expenses. TMS provides three term-length payment plans of three or four months each so you can spread your payments for the entire year across nine or 12 months. For more information, visit knox.afford.com.
Payment Plan and Loan Combination
If your family budget requires a smaller monthly payment, you might consider a combination of long-term loan (through the Federal PLUS or private loans above) and a monthly payment plan through TMS. This combination would be designed to meet your budget and cover the entire cost.
Other resources you might consider include a home equity line of credit, which may have tax benefits, or other collateralized loans. Discussing these options with your financial advisor and/or banking institution may be beneficial.