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Supplemental Loans
Supplemental loans are education loan funds that can be obtained in addition to the financial aid package offered by Wheaton College. The Financial Aid Office works with the student and family to determine the best options for their particular situation. The two main types of supplemental loans are Federal PLUS loans which are federal funds borrowed by the parent and private “Alternative” loans. Generally, for either of these, the funds can be borrowed from the same lender as the one used for Federal Stafford loan funds. Following are details on Federal PLUS loans and Alternative loans. Please contact the Financial Aid Office if you have additional questions.
Parent PLUS Loan Information
The Federal Parent PLUS loan is a federal loan to pay for education expenses. Instead of the student being the borrower, a parent is the borrower and the one to repay the loan. The Federal Parent PLUS loan can go toward a family’s Expected Family Contribution (EFC), and the parent can borrow up to the cost of attendance less any accepted financial aid. The interest rate is currently a fixed 8.5%. Once the entire loan is disbursed, the parent usually starts repayment of the loan sixty days after the last disbursement. However, if this is a financial hardship for the family, the parent can call the lender and request forbearance on the loan. If you are interested in a Federal PLUS Loan, please contact the Financial Aid Office.
Federal Parent PLUS Information Sheet
Federal Parent PLUS Instructions Sheet
Parent Disbursement Release
Alternative Loans
Alternative loans are private loans (instead of government-guaranteed funds) in the student’s name. Generally, a credit check is required. However, since most students have little or no credit, a credit-worthy co-borrower is usually necessary for this type of loan. The student can use this loan to go toward the Expected Family Contribution (EFC), and the loan amount can be up to the amount of the cost of attendance. The interest rate of this loan is variable, and the loan is unsubsidized, which means that the interest accrues while the student is in school. Loan repayments are deferred while the student is in school and during a 6-month grace period after the student drops below half-time. If the student goes to graduate school, the loan will automatically go back into deferment. Once repayment starts on the loan, the student is not allowed to include the alternative loan with their Stafford Loans in a federal consolidation loan.
If the student is interested in applying for an Alternative Loan, our office recommends that he use the same lender as he uses for his Federal Stafford Loans if that lender offers an alternative loan option.
Alternative Loan Chart
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