When Financial Aid Doesn't Cover Everything

Once you have applied for and received your financial aid award package, your next question may be, "How do I take care of the costs that financial aid doesn't cover?" If your family cannot meet the financial responsibilities from current income and/or assets, there are a variety of options available. Similar to the purchase of a house or a car, higher education is a long-term investment with long-term value.

A number of Marietta College financing options are outlined below for you to consider. As you review this information, you may decide that one method best fits your needs or you may elect to use a combination of payment plan for part of the cost with a loan for the remainder.

Payment Plans

You will receive a mailing from the Student Accounts Office in early July that will contain instructions on how to access your initial bill. Enrollment forms and instructions will also be included for our various payment plan options. All of the details can be found on the Student Accounts Payment Options page.

Semester Payment Plan
This plan calls for one payment for each semester. The payment for fall semester is due at the beginning of August, and for spring semester at the beginning of January.

Monthly Budget Plan
This is a ten-month plan that is offered through Tuition Management Systems (TMS). The Monthly Payment Option allows you to spread your payments equally over a ten month period with the first payment due on July 1. As long as payments are current, the only fee for this plan is an $60 enrollment fee. The enrollment fee also provides for life insurance for the payer in the amount of the contract balance. You will receive a monthly statement directly from TMS. For more information about Tuition Management Systems, phone them at (800) 722-4867, visit their website at www.afford.com/marietta, or e-mail them at tmsservice@afford.com.

Short-Term Payment Plan
The Short-Term Payment Plan, offered directly through Marietta College, spreads each semester charges over three installments. For the fall semester, the first payment is due on August 2; another payment will be due on September 30 with the final payment for the semester due on October 29. There is a monthly interest charge of 1.5% on any unpaid balance. Because of this interest charge, families with larger balances may find it more economical to enroll in the Monthly Budget Plan offered through Tuition Management Systems.

For more information about payment plans, contact Donna Born in the Marietta College Business Office at
(800) 274-4619.

Borrowing Options

If you are thinking about borrowing to help pay for your student's higher education, first learn all you can about education loans, study your cash-flow position, and then borrow only what is necessary.

PLUS Loan
You may be eligible for a Federal Parent Loan for Undergraduate Students (PLUS). PLUS loans are for parents, stepparents or legal guardians of dependent undergraduate students. You may borrow up to the total cost of education less any other financial aid received. To be eligible for the PLUS loan, the borrower must be considered credit-worthy. If the parent's loan application is denied, the student becomes eligible to borrow an additional Unsubsidized Stafford Loan of up to $5,000, depending on need and grade level.

To apply for a PLUS loan, complete and return the "PLUS Loan Credit Authorization" form. Upon receipt, Marietta College will check for credit-worthiness and, if eligible will create a PLUS loan promissory note through the Federal Direct Loan system and send it to you for your signature.

Alternative/Supplemental Loans
Students who have borrowed the maximum allowable under the Federal Stafford Loan program, but who need to borrow additional amounts may want to consider borrowing an alternative loan. Alternative loans are borrowed from a bank, and don't have the same restrictions as federal loans. However, since they are education loans, they may include advantages that are similar to some of the federal education loans such as deferment options and lower interest rates. Alternative loans usually require a credit-worthy cosigner if the student does not have a favorable credit history and require certification by the school. The maximum borrowing limit is the annual cost of attendance minus all other financial aid received.

To apply for an Alternative/Supplemental loan, you will need to research and choose a lender. You are welcome to use any lender. A sample of lenders that we know to have outstanding service and differing credit approval methodologies is provided on the back of this brochure and on line. There are 5 application components students and their cosigners must complete for an alternative loan. 1) Initial application submission for credit check. 2) Lender credit approval. 3) Completion of a promissory note. 4) Acceptance and completion of a Loan Disclosure. 5) Completion of a Self-certification Form. The alternative loan process can take up to four weeks or longer for completion. The order in which these items are presented varies by lender.

Home Equity Loan
If you are a homeowner, you may be able to borrow a home equity loan. One of the biggest advantages to this loan is that the interest is tax deductible if the borrower itemizes deductions on their federal income tax return. For more information about home equity loans, contact a lending institution near you.

Life Insurance
Your life insurance policy may have options for borrowing for education purposes. For more information, contact your insurance agent.

For more information about federal or alternative loans, contact Peggy Arnold in the Office of Student Financial Services (800) 331-2709.

Blending Payment and Loan Options

With increased costs and so many education financing options available, Marietta College provides a Financial Planning Worksheet with every award package to help families arrive at an affordable solution makes sense. This resource will provide you with valuable information presented in a way that allows you to compare your options and make an informed choice.

Alternative student loans, which are in student’s names and typically require co-signers, are not able to be modeled in the Financial Planning Worksheet because terms are based on the loan application and they usually have variable interest rates.

Marietta College offers BORROWSMART®, a free online payment and loan calculator through TMS at www.afford.com/marietta. Click on the Borrow Smart link to explore other options in a dynamic setting which also accommodates alternative loan options. We highly encourage you to utilize this tool or call our office and we will be glad to assist you in other more specific calculations.

Financial Planning Worksheet

If using a payment plan alone is more than the maximum you can afford each month but you would like to keep the loan interest charges to a minimum, a combination of payment plan and loan might be to your advantage. Use the information supplied on the blue Financial Planning Worksheet enclosed in your financial aid award to see which financing option is the most advantageous combination for you. Here is a section by section review of that planning document. We would be happy to assist you if you cannot locate your Worksheet.

Financial Aid Credits

Not all sources of financial aid automatically transfer to a student’s billing account (such as work study awards). This first section calculates step by step the actual amount of Total Grants, Scholarships and Loans Credited to the Bill. The total credited aid is subtracted from the approximated Direct Costs charged by Marietta College to arrive at the Approximate Amount to be paid by the family. This is our approximation of what you will be billed for the year at Marietta College. It is an approximation only because we cannot predict other charges that may be incurred for things like parking permits, optional student health insurance, and things such as a library fine that may come up during the year.

Payment Plan Amounts

The second section provides actual payment plan amounts and calculations with a brief description for the three payment plans available at Marietta College based on the Approximate Amount to be paid by the family figure. More detailed information on the payment plans is available on the Student Accounts website.

PLUS Loan Financing

The third section provides the monthly payment and total cost of choosing PLUS loan financing for the Approximate Amount to be paid by the family. The enclosed PLUS Loan Credit Authorization form is required to determine parents eligibility, based largely on credit history.

Blended Payment and Loan Options

The fourth section illustrates examples of blended payment and loan options to adjust the monthly payment amount and demonstrates the financing cost associated with each option.

Five scenarios are presented from full payment plan to full PLUS loan arrangements. Alternative student loans, which are in student’s names and typically require co-signers, are not able to be modeled in this form because terms are based on the loan application and they usually have variable interest rates.