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What if I don't have enough financial aid to cover all of my expenses?
The purpose of financial aid is to assist students and their families in funding their education. Although
the Financial Aid Office will make every attempt to meet your financial need, you may not have enough to cover
all of your educational expenses. In this case, a few alternatives exist that may help in your financial
dilemma.
Scholarships
Many scholarships exist that can help pay a portion of your expenses. Most scholarships are based upon academic
merit, but there are many others available as well. Take some time to search the internet and other sources for
scholarship information. Please note that you should NEVER pay for a scholarship search. There are hundreds of
free search tools to help you.
Parent PLUS Loans
The PLUS loan is a federally sponsored and regulated national student loan program. Parents of dependent
students can take out loans to supplement their children's aid packages, so the loan is actually the parent's
loan and not the student's. The maximum annual limit that your parent can request equals the cost of education
minus other aid. The interest rate, based upon 91-day T-Bill rates plus 3.1% will cap at 9%.
Checks or electronic fund transfers are co-payable to parent and school and will first apply to the student's
account balance. The remaining funds (if any) are then sent directly to the parent. The Plus Loan does require
a credit check and some parents may not be eligible for the loan. If a parent is turned down for a PLUS loan
and receives a Letter of Denial, the student may be eligible for additional Stafford Loan. Please notify the
Financial Aid Office if this occurs.
Repayment begins 30 days after the first disbursement of a multiple disbursement, but there are ways to defer
payments while the student is in school. Like the Stafford and Perkins Loans, the PLUS loan also has a PLUS
Master Promissory Note that must be completed. In addition, the parent must also complete the PLUS Loan
Application. A parent will receive a response to their loan application within 10 working days.
Alternative Education Loans
After the traditional loan options, like Perkins, Stafford and PLUS have been exhausted, students can look into
the Alternative Loan market. Unlike the Federal Loan Programs, Alternative loans are not regulated by Federal
Financial Aid Regulations, so banks will set their own interest rates, terms and conditions of the loan.
Because interest rates on these loans are typically much higher than those found in the federal programs,
balances can compound quickly. For this reason, students should use this type of loan sparingly. Information
about Alternative Loan comparisons, go to the Students/Parents section of the WASFAA (Wisconsin Association of
Student Financial Aid Administrators) web site. Feel free to contact a Financial Aid Adviser to review your
options.
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