Federal Direct PLUS Loan (Parent Loan for Undergraduate Students) is a federally-guaranteed loan through the federal government. There are no income restrictions; parents need only to satisfy a credit check. The interest rate for the Parent PLUS Loan program is determined by the federal government every July for the current academic year. There are no annual or aggregate limits to how much a parent can borrow on behalf of their student. However, a Federal PLUS Loan cannot exceed the student’s cost of attendance minus other aid awarded to the student. Maximum payment time is 10 to 25 years, depending on the repayment plan that is chosen. Repayment begins within 60 days of disbursement unless an in-school deferment is granted by the federal government.
Wells College Monthly Payment Plan is offered to all enrolled students. The College recognizes that most families finance all or part of their educational costs with current earnings and that the traditional two-installment method does not meet the needs of all parents. Under the Wells College Payment Plan families have the option of paying their billing charges in four equal payments each semester. First semester payments are due: August, September, October and November and second semester payments are due January, February, March and April. The participation fee for this option is $50.00 per semester. Families will receive enrollment information on this plan with their first billing statement.
Tuition Pay is an outside agency the College contracts with to provide students and parents with a 10 month payment plan. There is no interest or finance charge to participate in the plan. There is an annual one-time fee set by Tuition Pay that is dependent on the total amount contracted and the families’ repayment lengths and terms. All enrolled students will receive a separate mailing on this payment plan upon enrollment.
Alternative/Private Educational Loans are private loans that are not funded by the federal government but are funded by local lending institutions. These are private consumer loans that have been designed to help families pay for educational costs. They should only be considered when all federal, state and institutional financial aid programs have been exhausted. Since these loans are not regulated by the federal government the interest rate and repayment terms will vary between lenders. Students who do not have a three year work history are often asked to provide a co-signer in order to be approved for the loan.