CHOOSE LOAN at Career Institute School

Choose an Education Loan

There are several different types of education loans for which a student borrower may be eligible. Among the list are the following:

• Stafford
• PLUS
• Alternative/Private Educational Loans

Each type of loan has different costs and terms.

Stafford loans and Perkins loans (if eligible, please see below) are among the least expensive educational loans and often have the most flexible repayment options. Private education loans are among the most expensive, with the highest fees and interest rates, although they are generally less expensive than credit card debt or non-secured private consumer loans. We recommend that families explore their eligibility for other types of loans only after they exhaust their Stafford loan limits.

Families should evaluate the various terms and features associated with each loan, and make selections based on their best interests. Among the terms and features to consider are the following:

• Repayment terms
• Interest rates
• Loan benefits
• Deferred payments
• Rate reductions
• Principal reductions
• Auto debit rate reductions

Federal Family Education Loan Program (FFELP) (Stafford, PLUS, and GRAD PLUS) loans are provided by private lenders, such as banks, credit unions and savings & loan associations and are guaranteed against default by the federal government. Students may select any lender that participates in the FFELP program. Please see drop-down box selection below reflecting lenders available at Career Institute with HESC.

LISTING OF LENDERS

FEDERAL STAFFORD LOANS:

Subsidized

Federal Subsidized Stafford Loans are need-based loans made available to students by participating commercial lenders and other lending institutions. The maximum amount students can borrow each year is based upon grade levels in school.

Unsubsidized

Unsubsidized Stafford Loans are not based strictly on demonstrated need. Independent undergraduates, graduates, and professional students can borrow additional money through this program. Amounts that may be borrowed annually vary by class level. Currently as of July 1, 2006, loans contain a fixed interest rate of 6.8 percent. Unpaid interest accrues from the start and compounds, increasing the total amount to be repaid. Repayment begins at disbursement unless you tell your lender to capitalize your loan. Students may be eligible to receive a combination of Unsubsidized and Subsidized Stafford Loans. For additional more specific information regarding Stafford Loan eligibility and loan aggregates, please go to Student Aid on the Web, or Mapping Your Future.

FEDERAL PARENT LOANS FOR UNDERGRADUATE STUDENTS (PLUS):

PLUS loans provide a fixed rate of 8.5% and are made available to the parents of dependent undergraduate students to assist with educational expenses. The maximum amounts that parents may borrow are equal to Career Institute cost of attendance minus other aid. Loans require credit checks by the lending institution, and require completion of a Master Promissory Note (MPN) by the parents. Repayment of both principal and interest commences from the start, while students are attending school.

ALTERNATIVE LOANS

The Career Institute recognizes that after all other financing options have been exhausted, students may also need to use alternative sources of financing to help offset the costs of attendance and living. Various lenders offer alternative loan programs to students. Students should be educated consumers and carefully compare the programs and terms offered. Alternative Loans are not subsidized by the federal government. Students must be at least 18 years old and creditworthy, or have a creditworthy co-signer to apply. Interest rates for these loans are largely based on the credit scores of the borrower and/or co-signer. For additional information, please see the information below on choosing a lender.