Otis strongly encourages students and their families to take advantage of federal loans before borrowing private loans. Parents should consider the advantages of a fixed interest rate, forbearance opportunities and tax benefits of a Parent PLUS Loan
Private loans are offered by lenders to credit-worthy students to meet educational expenses not covered by financial aid. The terms for private loans vary according to each lender. It is the student's responsibility to research and decide which loan is most advantageous. The Otis FastChoice Tool contains a list of lenders that students have used in the past. The chart serves the sole purpose of guidance and students are highly encouraged to be vigilant consumers regarding their student loans.
A few items to keep in mind about private loans:
- Interest rates can be fixed or variable. Variable rates can increase or decrease over time, depending on market conditions and lender.
- Loans have an a range of interest and fees that students should take into considiration before accepting the loan
- Loans must be repaid with interest.
- Everyone is encouraged to have a credit worthy co-signer to get lower rates and/or fees since interest rates are based on credit.
- Student should contact the lender or the financial aid office for any questions.
Students who are ready to apply for the Private Loan can proceed to the Loan Procedure website.
You must complete the application before the Financial Aid Office receives notification for certification. The amount for which you may be eligible depends upon the cost of attendance minus any financial aid you may be awarded and accepted.
It is the student responsibility to communicate with the Financial Aid Office regarding the approval and need for certification. Delay of funds may occur due to several factors, so please budget accordingly.
Otis College of Art and Design makes no representations, warranties or guarantees that the financing options presented in this site are the most attractive terms available to any particular student.
Students and parents have the right and ability to select the education loan provider of their choice, are not required to use any of the current lenders, and will suffer no penalty for choosing a lender that is not included on the list of previously used lenders. Funds are disbursed by the lender on a per semester basis.
CHOOSING A CO-SIGNER
A co-signer is a person who agrees to take on the responsibility for your private student loan debt, should you fail to repay.
An ideal co-signer should have the following qualifications:
- Four to five years of credit history
- Credit is not over extended
- All credit obligations are met
- A majority of revolving credit remains unused (20% rule)
- No serious derogatory items exist on the credit report
- Steady employment with sufficient income