Framingham State University Financial Aid

Affordability FR AMI NGHAM. E DU/ F I NANC I AL A I D FINANCING YOUR EDUCATION There are several options available to a student and their family for managing the balance due. When considering any one of the following options, costs for the entire year should be kept in mind. This can easily be done by taking the fall semester balance due to FSU and doubling it to determine the full year. Some families will choose one of the following options to cover the balance due and many families will use a combination of these. Monthly Payment Plans - FSU provides interest-free payment plans that assist students and their families to spread the balance due to FSU into monthly installments. A minimum enrollment fee is required at the time of enrollment. More detailed information is provided at summer orientation programs and accompanies the electronic billing statement for the fall semester. You can also check online at framingham.edu/admissions-and-aid/student-accounts or contact the Student Accounts Off ice at FSU. Federal Direct PLUS Loan - The PLUS Loan enables parents of dependent undergraduates to borrow for their child’s education. Repayment of this loan generally begins within 60 days of the date that the loan is disbursed unless parents apply for a deferment. The f ixed interest rate for the 2022-2023 academic year was 7.54%. There is also an origination fee taken by the federal loan processor at the time of each disbursement. In 2022-2023 this fee was 4.228%. Interest rates for the 2023-2024 academic year will be set during the summer of 2023. Parents may borrow up to the cost of at tendance annually, less any f inancial aid offered to the student. Parents can apply for PLUS loans and get specif ic information on repayment , deferment , cancelation, and default provisions at the Federal Student Aid website, studentaid.gov. Private Alternative Education Loans - Private banks and loan companies also offer student and parent loans, commonly known as alternative loans. Parents may borrow up to the cost of at tendance annually, less any f inancial aid offered to the student. Additional information is available at framingham.edu/admissions-and-aid/f inancial -aid/types-of-aid/alternative- loans. PAYMENT EXAMPLES You may use one or a combination of options to pay your bill . Below are some examples: Brian is a full -time undergraduate student who is living on-campus for the 2023-2024 academic year. His total direct costs are $25,164 for the full school year. He applied for f inancial aid and received an aid offer of $16,000 for the year. Brian’s Direct Costs = $25,164 – Financial Aid of $16,000 = Balance Due to FSU of $9,164. Option 1: Brian and his family decide to put the entire balance due of $9,164 on the payment plan. Beginning on July 1, 2023 through April 1, 2024 they would make 10 monthly payments of $916. Option 2: Brian’s sister is also in college and his parents have been using a monthly payment plan at her university. They plan to continue this for 2023-2024, so they decide to utilize the Federal PLUS loan program to pay the $9,164. Remember that there is a 4.228% origination fee taken out by the loan processor. Therefore, the PLUS loan amount requested should = $9,570 so that the net amount disbursed af ter the fee will pay his account in full . Option 3: Brian and his family determine that a $916 monthly payment is not manageable but a $300 per month payment is. If $300/month is set up on the payment plan, then $3,000 of the $9,164 balance due would be paid out of current income. The family would then turn to the Federal PLUS or an alternative education loan lender for the remaining $6,164 balance due to FSU. Using a combination of the payment plan and a loan program results in a lower overall cost than borrowing the full amount , as less interest will be repaid on the loan over time.

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