Family Financing Options at Harvard College

Student Loans

Federal Direct Subsidized Loan

• Need-based loan with interest paid by the federal government during enrollment period.
• Interest rate fixed at 6.8 percent, with 10 years to repay.
• Maximum amounts: $3500 for freshman, $4500 for sophomores, $5500 for juniors and seniors.
• The 1.0% net origination fee (after 1.5% automatic rebate for on-time payment) is included in the loan amount.
• Repayment begins six months after the student graduates or is enrolled less than half time.
• Families must complete the Free Application for Federal Student Aid (www.fafsa.ed.gov) to determine eligibility for this loan.

Federal Direct Unsubsidized Loan

• Non-need-based loan with interest paid on a monthly basis during the enrollment period of or deferred and added to the principal amount when repayment begins.
• All other terms are the same as above.

Student Loan Request Form

Parent Loans

Families may borrow up to the full cost of attendance, less financial aid. While there are no income restrictions, the borrower must pass standard tests of creditworthiness. All loans may be prepaid partially or in full with no penalty.

Families intending to borrow a parent loan should submit the application by July 31, 2008 in order for loan credits to be available toward the payment required for fall term registration. Please apply for only one parent loan at a time.

Federal Direct PLUS Program (available to U.S citizens and permanent residents)

• Interest rate is fixed at 7.9 percent, with 10 years to repay. Repayment begins right away.
• The 2.5% net -origination fee (after 1.5% automatic rebate for on-time payment) is deducted from the amount for which families apply.
• Extended and graduated repayment plans also available.
• Evaluation of creditworthiness does not include debt-service-to-income ratio analysis.
• Direct PLUS application instructions
  

Estimating Amount to be Financed
Educational Expenses for 2008-2009
	Tuition and Health Services Fee		$33,983
	Room and Board		$11,042
	Student Services Fee		$2,190
	Estimated Books / Personal		$3,035
subtotal			$50,250
Total Scholarships and Student Loans		-
Contribution from Current Income and Assets		-
Amount to be Financed		=

Tuition Prepayment Option

Families who have saved for college may wish to prepay future years of tuition and health services fees at the 2008-09 rate of $16,991.50 per semester, avoiding annual rate increases. The payment for a freshman is $135,932 for a sophomore $101,949, for a junior $67,966.

Please note that this program covers tuition and health service fees only, and does not include room, board, or other fees. Families are responsibile for paying these separate charges each semester, as instructed by their invoice.

• For more details, please consult our Fact Sheet.
• To enroll in the program, please submit a Data Worksheet
• We will begin sending contracts to participants in mid-June.

While outside scholarships may be applied toward these other charges, families receiving a need-based scholarship from the College are not eligible to participate in this program. Unused funds can be returned to the family at any time (without interest) for students studying out of residence or withdrawing.

Enrollment in the Tuition Prepayment plan requires that a contract be signed with the Financial Aid Office, and must be completed by August 31, 2008, to avoid a late enrollment penalty.

(rev 3/08 ssm)