Federal Stafford Loans are normally disbursed in two equal installments. Repayment begins six months after the student graduates or stops attending school on at least a half-time basis. Students who are not eligible for a subsidized Federal Stafford Loan may borrow an unsubsidized Federal Stafford Loan. Dependent undergraduates may borrow up to the subsidized Federal Stafford Loan limits less the amount of any subsidized loan received. In order to advise students of their rights and responsibilities, an entrance interview is required of all first-time borrowers at Tufts prior to disbursement of the loan.
Exit counseling is required of all borrowers before leaving the university.
Through the Federal PLUS Loan program, parents of dependent undergraduates may borrow up to the full cost of education minus any financial aid annually at a variable interest rate equal to the 52-week treasury bill rate plus 3.10 percent, not to exceed 9 percent. The loans are made by a bank or credit union that will request a credit check to be sure that the borrower will be able to make the monthly payments, which begin two months after the loan is received. PLUS loans must be used for college expenses, including room and board, as must Federal Stafford Loans made to the student. Tufts aid will not be reduced when a PLUS loan is taken unless the sum of all financial aid including the PLUS loan exceeds Tufts's costs for the year. An origination fee of 3.75 percent is charged and the fixed interest rate is 6.98 percent for 2001-2002.