The Parent Loan for Undergraduate Students (PLUS) is an 8.5% Fixed Rate loan designed to help parents pay for their child’s undergraduate education. The PLUS is based on your credit rating, not on your household income or on the FAFSA. For each dependent child you may borrow up to the entire “cost of attendance” minus all other financial aid awarded. See Cost Of Attendance for Lyme Academy figures.

Since we are a small institution, it helps to keep things as efficient as possible. We have a working relationship with the following Lenders which makes it easier to help you if problems arise. You may of course, take out a PLUS Loan with any Lender you wish. Be sure to notify us with all pertinent information if you choose to use a Lender not listed. PLUS Lenders have ways for you to save money during repayment with interest rate reduction benefits based on auto deduction or consecutive scheduled payments. Check their web sites for more information.

 The Interest Rate is currently a Fixed Rate of 8.50%. The application fee is usually 3% and sometimes with a 1% guarantee fee. The net amount is split into two payments, one per semester, sent to the Lyme Academy. Currently the PLUS must be reapplied for annually.

Connecticut Family Education Loan Program - CHESLA offers a supplemental educational loan available at a current fixed rate of 6.99% based on credit rating and ability to repay. Loan fees are limited to a non-refundable reserve fee equal to 3% of the loan amount. This charge is deducted from the loan prior to disbursement. Families with a student enrolled at least half-time in a CT non-profit college may annually borrow from $2000 up to the full cost of education less other aid at a low fixed rate. Family pays only interest during in-school years. Upon completion of college, the loan is paid off over 11 years. For more information call 1-800-935-2275 or visit the web site: www.chesla.org

Who gets the money?

• The Lyme Academy will receive the money in at least two installments. No one payment may exceed half of the loan amount. The college will require the parent to endorse any disbursement funds sent by  check and then send it back to the college. We will then apply it to the student's tuition and fees, and other institutional costs. If any money remains the parents will receive that amount as a check, unless they authorize that it be released to the student. Any remaining loan amount must be used for education expenses – off campus Room & Board, transportation, books and art supplies, etc.

See Glossary – Aid Terms for help with the acronyms and terminology.