Stafford loans are subject to a three percent origination fee and a one percent guarantee fee, although many lenders will pay the guarantee fee for the student borrowers. For a subsidized Stafford loan, the federal government pays the interest during the in-school period. Student educational loans are available to St. Olaf students irrespective of need. Monthly payments toward interest and principal begin on the first anniversary of the completion of school. PLUS funds can be secured from banks and from savings and loan associations.
Applications are available from participating lenders.
The PLUS program is guaranteed by the federal government and is insured against the death of the borrower. Parents may borrow up to the cost of education minus financial aid received. The interest rate on PLUS is the lower of nine percent or refinanced variable interest rate of T-bill plus 3.1 percent. PLUS loans are subject to a four percent origination fee and guarantee fee. Repayment on PLUS loans begins 60 days after receipt of loan proceeds and can be extended over 10 years.