Loan Payment FAQs
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Which loan or payment plan is best for us? There are many factors that will affect your decision on how you pay your college bills, including the size of the required payment, your current income, other obligations, future expenses, and employment plans. We suggest that you start by estimating the amount you can pay per year and then comparing that amount to the amount to be paid by parents in the payment worksheet. If you think that the total amount is manageable and that you will be able to pay half in August and half in January, then you may choose the standard semester payment plan. If the amount is manageable, but it would be more convenient to spread the payments over 10 months, you may select a monthly payment plan. If you would prefer to borrow rather than to pay the entire bill in one year, it may be helpful to ask yourself the following questions as you consider a parent loan: How much am I currently paying per month on existing debts? Have I been able to maintain a good credit history with previous loans? If I itemize deductions for federal or state tax purposes, would deducting the interest paid on the loan allow me to reduce my federal or state income taxes? |