Federal Direct Loans
The William D. Ford Federal Direct Loan Program offers three types of loans made by the U.S. Department of Education to the student and parents to be used for education-related expenses: subsidized and unsubsidized Stafford loans for students, and PLUS loan for the parent(s) of dependent students.
- The Direct Subsidized Stafford Loan is interest-free to the student (the government pays the interest) while the student is enrolled in school at least half time and during periods of authorized deferment.
- The Direct Unsubsidized Stafford Loan is not interest-free at any time. Payments may be deferred while the student is in school at least half time, during the grace period, and during authorized periods of deferment.
- The Direct PLUS Loan is a credit-based loan for the parent(s) of dependent students that helps pay for education expenses up to the cost of attendance minus all other financial assistance. For more information go to https://studentaid.ed.gov/sa/types/loans/plus.
Interest rates will be established each year for the Direct Stafford and Direct PLUS loans for which the first disbursements is on or after July 1 through June 30 of the following year. To learn more about Federal Direct Loan interest and fees go to: https://studentaid.ed.gov/sa/types/loans/interest-rates#what-are-the-interest-rates-of-federal-student-loans.
Private Student Loans
Private loans are non-federal, private student loans available from a variety of national lending institutions. Private student loans may be used by students who are not eligible to receive federal aid or as a supplement to federal loans. You have the right to borrow from the lender of your choice. Otis College does not have any preferred lender arrangements. To review the terms and conditions for private loans offered by some lenders used by Otis College students in the last three years and to apply online click here. Review the Private Education Loan Selection Disclosures and Otis College Code of Conduct.
Private student loans are credit-based. Therefore, if you plan to apply for a private loan, we recommend you obtain a credit report. Effective December 2004, all consumers may receive one free copy of their credit report annually.
To request a credit report, access the following websites:
Most of the lenders offer better terms for private student loans with a cosigner.
The loan limit for a two-term loan period is equal to the cost of attendance minus any other financial aid.
A private loan lender must provide the student with a "Right-to-Cancel" period (usually 10 business days) after the final loan disclosure form is sent to the student. The Right-to-Cancel period means that after Otis College has certified your loan and all disclosures are sent, there is a mandatory waiting period before the lender may disburse loan funds to the school.
For more information about private student loans, contact the Otis College Financial Aid Office.
Important to Consider
The loan period generally covers two semesters and is delivered in two equal disbursements. If students have only one remaining semester to cover, loans will be prorated based on the number of registered units. Loan disbursements are sent directly to the school via Electronic Funds Transfer (EFT).
Students are required to complete Online Entrance Counseling prior to receiving federal student loans.
All Graduating Seniors are required to complete both Online Exit Counseling and In-Person Counseling with one of our Financial Aid Counselors. Exit Counseling sessions provide opportunities for students to ask questions regarding repayment options, how to contact their Federal Loan Servicer and knowledge about what to do if they are unable to make their minimum payments.