Alternative Loans for Parents
Whether or not you qualify for need-based financial aid, you may want to consider other programs to help finance all or part of your cost to attend UMass Amherst. You should not apply for any of these programs until after you have applied for need-based financial aid and received a decision from Financial Aid Services.
UMass Amherst does not endorse any individual alternative loan - families should compare programs and choose those that best fit their needs. In addition, these lists are not exhaustive, and you may find other loans that are a better match. Please visit the lenders Web sites to learn more about the terms, conditions, and benefits of these programs.
Parent (Family) Loans
Federal Direct Parent PLUS Loan
The Federal Direct Parent PLUS Loan program enables creditworthy parents of dependent undergraduate students to borrow directly from the federal government to help pay for the student’s educational expenses. Parents may borrow up to the cost of attendance minus financial aid. The interest rate is fixed and is set each year on July 1, but will never exceed 9%. PLUS Loans are disbursed directly to the student’s UMass Amherst account, generally in two installments. The program charges interest on the loan from the date the first disbursement is made until the loan is paid in full.
Borrowers of Federal Direct PLUS Loans begin repayment 60 days after the second disbursement. A choice of repayment options allows borrowers to repay the loan in a way that best suits their financial circumstances. Applications and detailed information on repayment options are available at Financial Aid Services.
If parents are denied a Parent PLUS loan, the student may be eligible for an additional Direct Unsubsidized loan.
Additional Features of the Federal Direct Parent PLUS Loan:
• Fixed interest rate of 7.90% for the current academic year
• 4% origination fee deducted from the loan at disbursement
• 1.5% up front rebate at time of disbursement
• Tax savings through interest deduction feature
• Repayment begins within 60 days after the loan is fully disbursed
To apply, complete a Federal Direct Parent PLUS Loan Pre-Application form and submit it to Financial Aid Services.
MEFA Undergraduate Parent Loan
- 7.75% fixed interest (APR* 8.43%) for the MEFA Undergraduate Loan with immediate repayment
- 8.89% fixed rate (APR* 8.66% - 9.52%) for the MEFA Undergraduate Loan with defer** payments until graduation
- 4.00% origination fee
- 15 year repayment term
- Apply online or by phone at 800-809-0571
- E-sign capability
* The Annual Percentage Rate (APR) reflects both the accruing interest and the effect of borrowing the origination fee and paying it over the term of the loan. APR varies with length of deferral and the presence of a co-borrower.
** The deferred repayment option is subject to fund availability and is awarded on a first-come, first-served basis. Interest rates for deferred loans are higher than the rates for non-deferred loans. Deferred loans result in an increased cost of borrowing.
