General Information
Financing Alternatives
Federal Perkins Loan
The Federal Perkins Loan is a campus-administered federal program that provides low-interest loans to exceptionally needy students. Interest does not accrue while the student is enrolled at least half-time or during grace or deferment periods.
Federal regulations require that all first time borrowers of Federal Perkins Loans complete Entrance Counseling and a Master Promissory Note (MPN).
Federal Perkins Loan Entrance Counseling: Complete Federal Perkins Loan Entrance Counseling on line at http://www.mappingyourfuture.org. Be sure to click on the “Online Student Loan Counseling” icon and select “Perkins Entrance”. This session will give you guidance on managing your student loans both during and after college, and provide information on your Federal Perkins Loan rights and responsibilities. The Brown University Loan Office will receive confirmation upon completion of your entrance counseling session. Keep a copy of the confirmation for your records.
Federal Perkins Loan Master Promissory Note (MPN): A Perkins Master Promissory Note (MPN) is required before disbursing any Perkins Loan funds to your student account. By signing the MPN, you promise to pay back to Brown University all loan amounts disbursed while enrolled at Brown plus interest accrued. A single MPN covers all Perkins Loans awarded by Brown University for up to ten years. Students required to complete a Perkins MPN will be notified by the Loan Office.
Students should refer to their financial aid award letter to determine the amount of their annual Perkins Loan.
| Loan Limits | $5,500 Undergraduate per year, $8,000 Graduate per year. Cumulative limits of $11,000 for Undergraduates in years one and two, $27,500 for Undergraduates in years three and four, and $60,000 for graduate/professional students (combined with undergraduate borrowing). |
| Interest Rate | 5% Fixed |
| Grace Period | 9 month original, 6 month post deferment |
| Minimum Repayment | Minimum of $40 per month over a maximum repayment period of 10 years. |
Direct Subsidized and Unsubsidized Stafford Loans
The William D. Ford Federal Direct Stafford Loan Program provides low-interest educational loans to assist students in paying for educational expenses. The Department of Education acts as the lender, providing funds for Stafford and PLUS Loans.
Students may receive a Direct Subsidized Loan, a Direct Unsubsidized Loan, or both for the same academic year. Qualification for a Direct Subsidized Loan is based on financial need, as determined under federal regulations. A student’s need is not a factor in determining eligibility for a Direct Unsubsidized Loan. Students may qualify for a Direct Unsubsidized Loan regardless of their financial need.
The interest on a Direct Subsidized Loan is paid by the federal government while the student is enrolled in school at least half time, and during grace and deferment periods. The interest on a Direct Unsubsidized Loan continues to accrue even while the student is in school and during grace and deferment periods. Students are responsible for paying the interest that accumulates, either while in school, or having the interest capitalized until entering repayment.
Loan Limits for Federal Direct Subsidized Loans and Direct Unsubsidized Loans are based on your academic level, your status as a dependent student or independent student, the length of the academic program in which you are enrolled, receipt of other aid, and your cost of attending school. Below are maximum loan amounts based on academic level for the Academic Year 2009-2010:
| Undergraduate Subsidized | ||
| Freshmen | $ 3,500 |
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| Sophomores | $ 4,500 |
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| Juniors | $ 5,500 |
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| Seniors | $ 5,500 |
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| Additional Unsubsidized | Beginning July 1, 2008, dependent undergraduates are eligible for an additional $2,000 Unsubsidized Stafford Loan Annually. | |
| Additional Unsubsidized for dependent students whose parents have been denied a Federal PLUS Loan and independent undergraduate students: | ||
| Freshman and Sophomores | $ 6,000 | |
| Juniors and Seniors | $ 7,000 | |
| Graduate and Professional | Graduate & Professional | $20,500 |
| Graduate/Professional students may borrow a maximum of $8,500 Subsidized Stafford Loan annually. Eligiblity is based on cost of attendance and financial need. | ||
| Origination Fee | Loans first disbursed between July 1, 2009 and June 30, 2010 will be charged a 1.5% origination fee. The loan fee/origination fee is subtracted proportionately from each loan disbursement. Direct Loans will offer a 1% up-front rebate, making the actual fee at disbursement 0.5% | |
| Interest Rate | Fixed at 5.6% for undergraduate Federal Direct Subsidized Stafford Loans disbursed on or after July 1, 2009. Fixed at 6.8% for graduate/professional Federal Direct Subsidized Stafford Loans and all Federal Direct Unsubsidized Stafford Loans disbursed on or after July 1, 2008. |
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| Grace Period | 6 month | |
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Repayment Options |
Standard: Fixed monthly payments of at least $50 over a maximum 10 year period.
Income Based: Available as of July 1, 2009, available to borrowers who demonstrate a partial financial hardship. Monthly payments are based on your annual adjusted gross income, your family size, and your state. Payments will not exceed 15% of your discretionary income. After 25 years, any remaining debt will be discharged, but you may have to pay taxes on the amount forgiven. |
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Federal regulations require that all first time borrowers of Federal Direct Stafford Subsidized and Unsubsidized Loans complete Entrance Counseling and a Master Promissory Note (MPN).
Federal Direct Loan Entrance Counseling: To complete Federal Direct Stafford Loan Entrance Counseling, visit the Direct Loan Servicing Center web site at http://www.dlssonline.com. This interactive entrance counseling session will provide useful tips and tools to help you develop a budget for managing your educational expenses, and help you understand your loan rights and responsibilities. This session will take approximately 20 minutes to complete.
Federal Direct Loan Master Promissory Note (MPN): To complete a Federal Direct Stafford Loan Master Promissory Note (MPN), visit the U.S. Department of Education Federal Student Aid web site at http://dlenote.ed.gov. The student borrower will be required to use their U.S. Department of Education issued Personal Identification Number (PIN). This is the same PIN that you may have used to sign your Free Application for Federal Student Aid (FAFSA). If you do not have a PIN, or can not recall it, please visit the Federal PIN web site at http://www.pin.ed.gov and allow approximately 10 business days to receive it. When you sign the MPN, you are confirming your understanding that Brown University may make multiple loans for you for the duration of your education (up to ten years) without having to sign another promissory note. You are also agreeing to repay the U.S. Department of Education all loans made to you under the terms of the MPN.
The Brown University Loan Office will receive confirmation from Direct Loan Servicing and the U.S. Department of Education once your documents are completed. You should keep copies of the confirmations for your records.
Brown University Loan
The Brown University Loan provides non-federal educational loans made through the University. Interest does not accrue while the borrower is enrolled at least half-time and during the grace period. Students must sign a promissory note at the start of each semester or whenever an adjustment to the loan amount is made.
| Loan Limits | Established by Financial Aid |
| Interest Rate | 9% Fixed |
| Grace Period | 6 month |
| Minimum Repayment |
Minimum of $25 per month over a maximum repayment period of 10 years. |
Federal Direct PLUS Loan
The Federal Direct PLUS Loan Program is a low-rate government loan that allows parents who are U.S. citizens, U.S. nationals, or permanent residents, to borrow funds for undergraduate educational expenses. The Program is administered by Brown University Loan Office which works with the U.S. Department of Education to offer this loan. Detailed information regarding the Program can be found on the U.S. Department of Education’s web site at http://www.ed.gov/offices/OSFAP/DirectLoan.
One parent is the borrower of the Federal PLUS Loan. If the parent borrower is denied, the parent may request an endorser to the loan. Upon PLUS denial, families may also contact the Brown University Office of Financial Aid to inquire about additional Federal Direct Unsubsidized Loans in the student’s name.
To be eligible to borrow the Federal Direct PLUS Loan, the parent and student must be U.S. citizens or eligible non citizens, and not in default on prior educational loans. The student must be enrolled at least half-time in a degree program, and making satisfactory academic progress. Parents must meet federally defined creditworthiness standards for approval.
The maximum loan amount that a parent may borrow on behalf of each dependent student may not exceed the student's cost of education, minus other estimated financial assistance for that student. Loans for the full academic year will be disbursed directly to the University in two equal installments, half for each semester. There is an origination fee of 4% that is deducted proportionally from each loan disbursement. Direct Loans currently offers a 1.5% up-front rebate on this origination fee, so your fee at disbursement is 2.5%. If you fail to make 12 on-time monthly payments upon repayment, you lose this rebate.
For all PLUS Loans made after 7/1/06, a fixed interest rate of 7.9% is applicable.
Repayment begins within 60 days after the loan is fully disbursed. For loans disbursed after 7/1/08, parent PLUS Loan borrowers have the option of deferring repayment based on the enrolled status of the dependent student on whose behalf a Federal Direct PLUS Loan was obtained. Specifically, parent PLUS Loan borrowers may defer repayment while the dependent student on whose behalf the loan was obtained is enrolled on at least a half-time basis, and during the six-month period after the dependent student ceases to be enrolled on at least a half-time basis.
Interest will accrue during the deferment period. The parent borrower will be sent quarterly interest statements and will have the option of paying the interest as it accrues. Unpaid interest will be capitalized and due at the end of the deferment period.
Parent borrowers must call the Direct Loan Servicing Center at 800-848-0979 to request deferment.
Effective July 1, 2006, Graduate and Professional Students are eligible to borrow under the PLUS Loan Program. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS Loans. Unlike Parent borrowers, Graduate/Professional PLUS applicants are required to complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Direct Stafford Loan before applying for a Graduate/Professional PLUS Loan.
How to Apply:
(Parents of Undergraduate Students: Complete Steps 1 and 2 below. Graduate/Medical Students: Complete Steps 1, 2, and 3 below.)
Step 1: Complete a 2009-2010 Parent PLUS Loan Request Form (or 2009-2010 Graduate/Professional PLUS Loan Request Form as applicable). This form indicates your requested loan amount for the 2009-2010 academic year, and authorizes the U.S. Department of Education to perform a review of your credit. Please return the completed form via mail or fax to Brown University Loan Office for processing.
Step 2: Complete the Federal Direct Loan Master Promissory Note (MPN) online at http://dlenote.ed.gov if this is your first time borrowing for the student. The parent borrower will be required to use their U.S. Department of Education issued personal identification number (PIN). This is the same PIN that you may have used to sign your student’s Free Application for Federal Student Aid (FAFSA). If you do not have a PIN, or can not recall it, please visit the Federal PIN web site at http://www.pin.ed.gov and allow approximately 10 business days to receive it. The PLUS MPN is designed for parent borrowers to use as a multi-year note for one dependent student. The PLUS MPN is valid and may be used to process subsequent Federal Direct PLUS Loans for up to 10 years after the original PLUS MPN is signed.
Step 3: Beginning July 1, 2008, borrowers of Graduate/Professional Federal PLUS Loans are required to complete PLUS Loan entrance counseling. Please complete your Federal Direct PLUS Loan Entrance Counseling on-line by visiting the Direct Loan Servicing Center web site at http://www.dlssonline.com. Select the “Entrance and Exit Counseling” link at the top of the page then select the go button under “Entrance Counseling”. You will have the option to select the button for tutorial and quiz under “PLUS Loan”. This session will take approximately 20 minutes to complete. You will be required to use your Federal Student Aid Personal Identification Number (PIN). This is the same PIN that you may have used to sign your Free Application for Federal Student Aid (FAFSA). If you do not have a PIN, or can not recall it, please visit the Federal PIN web site at http://www.pin.ed.gov and allow approximately 10 business days to receive for receipt.
Other Alternative Loans
The Financial Aid Office maintains information about several alternative loan programs that may be of interest to students and parents.
Installment Payment Plan
Installment Payment Plans are administered by the Bursar's Office. Click here to obtain more information.
Tuition Pre-Payment Plan (TPP) - Undergraduate Students
Parents may prepay two, three, or four years of undergraduate tuition at the rate in effect when the student enters the plan. By prepaying undergraduate tuition, families avoid future tuition increases. Fees such as room, board, and other miscellaneous charges cannot be financed via TPP.
The Tuition Prepayment Plan is closed for the 2009-2010 academic year. The plan will reopen for 2010-2011 participation beginning in March 2010 and ending August 1, 2010. The cost of the program will be based on the 2010-2011 tuition rate.