Aid Chart: Parents of Undergrads

index of available college aid options

Type of Aid	Aid Information	Annual Limits	Requirements
Federal PLUS Loan for Parents see PLUS program you must apply through your student's school	Federal loan program available to parents of dependent undergraduates only. Loan funds will be sent to the school. The loan will be disbursed in at least two installments; no installment will be greater than half the loan amount. The funds will first be applied to pay tuition, fees, room and board, and other school charges. Any remaining funds must be used for paying education-related expenses.	The annual limit is equal to the total cost of attendance minus any financial aid received.	Parent must file the FAFSA form. see FAFSA Parent must pass a credit check to qualify or have a relative or friend who can pass the credit check co-sign the promissory note. Loan restricted to education-related expenses only. Loan restricted for dependent undergraduate students only. Student must be enrolled at least half-time in a degree or certificate program at an approved school.
Private Student Loans see Private Loans or dial: 1-866-813-7760	Private student loans are used to make up the difference between total cost of school and any financial aid received. These loans are not guaranteed by the government so the interest rate and origination fees may be higher. Most private loan programs have higher borrowing limits than federal loan programs. The student will submit the application as the borrower. The parent or other credit-worthy adult can become the co-borrower to the application if the student is unable to meet the credit guidelines. The loan can be used for education-related expenses, including the purchase of a personal computer. SayCampusLife Loans Financing a Better Future save money build good credit pay off your loan faster	From $1,000 up to the full cost of education as certified by your school.	You must have at least 21 months credit experience and a satisfactory credit history. You must meet the credit guidelines for employment and residency. If you can't meet these guidelines, you may need your parent or another credit-worthy adult to co-sign for the loan. Undergraduate and Graduate students must be enrolled at least half-time in a degree or certificate program at an approved school. Funds are certified through the school.
Home Equity Line of Credit see Home Equity	Private loan program where the lender opens a credit line on your behalf, which credit line is secured by the equity value of your home. You will use equity line checks or online transfer capabilities to pay for education or other expenses. The line of credit can be used at any time and for any expense up to your approved credit line balance.	No annual limits. Your amount is subject to your approved equity line balance.	You must have equity value in your home. Calculate your equity value. You must meet the lenders credit criteria and credit check. There is no limitation or restrictions on the use of the funds.
Banker Home Equity Line of Credit (BLOC) see BLOC program	Same as the home equity product above except that you use your BLOC as your primary money account. Best for applicants who have working income: use BLOC to pay for education expenses deposit your income into the BLOC pay living expenses using the BLOC income left over reduces BLOC account view illustration of program	No annual limits. Your amount is subject to your approved equity line balance.	You must have equity value in your home. Calculate your equity value You must meet the lenders credit criteria and credit check. There is no limitation or restrictions on the use of the funds. You must have discretionary income to benefit from the BLOC program.
Home Equity Loan see Home Equity	Private loan program where the lender extends a loan amount secured by the equity value of your home. This is a fixed loan amount with no draw capabilities. The loan can be used to pay any expense up to the available loan amount.	No annual limits. Your amount is subject to your approved equity loan balance.	Same as the home equity line of credit. You must estimate your total education costs since you will be taking out a one-time loan.
State Agencies	Individual states offer financial aid programs for state residents and in some cases out-of-state residents attending in-state schools. Financial aid may include grants, scholarships, financial aid assistance, and some loan programs.	Financial assistance may vary by state.	Financial aid qualifications can vary by individual state.
Investment Financing Options see Alternative Aid	State529 Plans Qualified investment plans established and managed by individual states that can be used to pay education expenses. Contributions are after-tax, but earnings in the fund are tax exempt. Funds are available to any named beneficiary. The beneficiary can be the contributor. Two types of plans: Prepaid Tuition Plans College Savings Plan Education IRAs IRA plans that can be setup for education. Contributions are after-tax, but earnings in the fund are tax exempt. The IRA can be used to pay for higher education and K-12 education expenses.	Limitations subject to the available amount in the plan.	Plan must be setup in the name of the beneficiary. Withdrawals are tax-exempt if the funds are used to pay for education-related expenses. Penalties may apply for payment of non-education expenses. link to individual states for information
IRA Plans More information from the IRS: www.irs.gov	You can make withdrawals from your IRAs for qualified higher education expenses without having to pay the 10% penalty tax.	Limitations subject to the available amount in the plan.	You will owe income tax on at the amount withdrawn from the plan.
Eligible Tax Credits More information from the IRS: www.irs.gov	The IRS allows students and parents who file and owe taxes to claim one of two educational credits. Tax credits reduce your overall taxes paid dollar-for-dollar.	Lifetime Learning Tax Credit: up to a maximum $2,000 per year per family American Opportunity Tax Credit: up to a maximum $2,500 per year per family for the first four years of school	Credit can only be taken for expenses covering tuition, fees, and books (if the book expense was paid to the institution on condition of enrollment) minus any scholarships and grants received. Room and board, personal expenses and transportation are non-eligible expenses. Check with your tax advisor for information.
Other Financial Aid See Aid Note: other types of financial aid available	Includes loan forgiveness programs, VA benefits, Americorps, U.S. public health, and job training programs.	Provides help for limited circumstances.	View program for limitations.