Beginning January 2010, Sarah Lawrence is a Direct Loan participant. You will borrow the Stafford and/or PLUS loan funds directly from the federal government. Your award letter will look the same but the source of your loan will be the government. You do not need to do anything to accept your loan.

To decline a Stafford loan amount, simply email us at finaid@sarahlawrence.edu within 2 weeks of the date of your award letter and indicate that you do not wish to borrow from the Stafford loan program. Any Stafford funds that were noted on your award letter will be removed from both your financial aid and student account records.

If you wish to borrow the maximum amount allowed by the federal government thereby increasing your Stafford loan (and indebtedness) on your award letter, simply email us within 2 weeks of the date of your award letter at finaid@sarahlawrence.edu and indicate the amount you wish to borrow.

First-time borrowers must also complete an Entrance Interview form and a Master Promissory Note (MPN). You may complete these requirements by visiting www.dl.ed.gov and www.dlenote.ed.gov .

For more information about the Stafford loan program, click William D. Ford Direct Student Loan Program.

Parents Filing PLUS Loans

If you are the parent of a Sarah Lawrence College student and wish to take out a Parent Loan for Undergraduate Students (PLUS), you may authorize the Office of Financial Aid to certify a PLUS application by sending an e-mail to finaid@sarahlawrence.edu.

The maximum amount of PLUS loan eligibility is the total cost of tuition, room, board, and fees minus any financial aid the student has been awarded. Bear in mind that only one parent’s name can appear on the loan, and that, because you may wish to borrow less than you are eligible for, maximum eligibility is not necessarily the same as the maximum amount of the loan. If you do not indicate an amount you wish to borrow, we will automatically certify your maximum eligibility. You must complete a separate Master Promissory Note (MPN) at www.dlenote.ed.gov. We will not process this loan until this step has been completed.

Applying for an Alternative Loan

Still need money? After considering all the resources available through the Office of Financial Aid, some families need further assistance and choose an alternative loan product. We recommend the following alternative loans based upon their responsiveness and customer service provided to Sarah Lawrence families.

The Office of Financial Aid has established processing protocols with our most frequently used lenders for private or alternative loan products. These lenders offer competitive borrower benefits and flexible repayment options.

By selecting one of the following lenders, you can fill out an online loan application, which allows the lender to prepare your file in advance of receiving our certification of your loan, thus expediting the approval process. Lenders are added or removed based upon feedback from prior borrowers and the annual review of lender attributes by Sarah Lawrence staff, faculty, and students. Click here for further information about the selection process.

You may choose any lender that participates in educational lending. Just e-mail us the name, lender code, and address of any lender not listed below.

1. SMART Loan from Sallie Mae
2. CitiAssist
3. Chase Select Loan
4. Student Funding Group
5. Citizens Bank TruFit Student Loan

Sarah Lawrence participates in NYHELPs, an alternative loan from NY State. Here are two links that you will be able to use find more information about this program. The first site provides information about the loan. The second link takes you right into the NYHELPs Marketplace module to apply for the loan.

• www.hesc.com/nyhelps
• www.hescmarketplace.org/nyhelps

Please apply to one alternative loan program only.

Declining or Changing a Loan

Simply e-mail finaid@sarahlawrence.eduand let us know the changes.

Other Borrowing Options

Sarah Lawrence offers a monthly tuition payment plan. For more information, click: http://www.afford.com/slc

Glossary of Lending Terms

Below is an abbreviated glossary of terms used by lenders.

• Subsidized/Unsubsidized—Dependent students who are: freshmen may borrow up to $3,500; sophomores may borrow up to $4,500; juniors and seniors may borrow up to $5,500 per academic year from the Stafford/Direct educational loan programs. Students who show need derived from the Free Application for Federal Student Aid (FAFSA), may borrow from the subsidized portion of the Stafford/Direct educational loan programs. Those who do not have need as determined by the FAFSA may borrow these amounts from the unsubsidized portion of the Stafford /Direct loan program. A subsidized loan means that the federal government pays the interest rate that accrues while the student is enrolled in school. An unsubsidized loan means that the student borrower must make interest payments on the amount of the loan in use while the student is enrolled in school.
• APR—annual percentage rate calculates the cost of borrowing money. It includes the annual interest rate, insurance and origination fees associated with lending money.
• Loan fees—fees added to the amount borrowed to cover the expenses for lending.
• Minimum monthly payment—the lowest amount you are required to pay each month during the repayment period.
• Grace period—the time between the end of enrollment (graduation, leave of absence, less than half time enrollment, or withdrawal) and when repayment begins. No payments are required during the grace period.
• Total repayment amount—the amount you borrowed plus the accrued interest.
• Repayment date—the day following the end of the grace period.
• Disbursement dates—the date the lender expects to send your loan amount to the college.
• Borrower benefits—special interest rates, incentives, or terms offered by an individual lender. These benefits may lower your payments or reduce your cost of alternative borrowing.
• Consolidation—combining all your loans into one new loan. You will make one payment to one lender. A consolidation loan has its own terms and conditions. Loan consolidation makes repayment easier if you have more than one federal educational loan. It combines all your eligible loan obligations into a one new loan with one monthly payment. It may also lower your monthly payment. If you choose to do so, you may be able to extend your repayment schedule beyond the 10 year standard. The interest rate on a consolidation loan is fixed and the rate cannot exceed 8.25 percent.
• Capitalization—adding unpaid accrued interest charges to the principal balance of a loan.
• Interest Rate—the rate at which interest accrues on a loan or cost of borrowing money.

Other Loan types

• Servicer – some lenders “sell” educational loans to a servicer. This third party company becomes responsible for collecting and processing payments for that lender.
• Deferment – you may qualify to defer making payments for a specified period of time. For a subsidized loan, the interest does not accrue because the government pays it on behalf of the borrower. Typical deferments are:
• Forebearance – is granted by the individual lender. This allows the borrower to not make payments during the forebearance period however interest does accrue. Borrowers should apply for a deferment before considering a forebearance.
• Delinquency – if you do not make the required payment by the due date. It also includes the period of time before a loan goes into default. It indicates that the borrower has failed to make payments or contact the lender for a deferment.
• Default – the borrower fails to begin repayment (delinquency) or arrange a deferment or forebearance 270 days after repayment is scheduled to begin.
• Parent Loan for Undergraduate Students (Parent PLUS) Allows parents of dependent students to borrow the difference between the total cost of the college and any financial aid offered to the student.
• Private Educational loans are offered by individual lenders to meet the gap between the cost of college and any financial aid offered. They are not subject to any government regulations (at least at the time of this writing).
• Deferments are available for
  • Enrollment in undergraduate or graduate school
  • Person with a disability enrolled in a qualifying rehabilitation program
  • Unemployment
  • Economic hardship
  • Military service