Loan Options
In reality, most students acquire some level of loan indebtedness in completing a degree. The rule of thumb for borrowing is to compare the likely income of the profession you are pursuing to the total amount of debt it will take to get your degree(s). In other words, can your salary sustain the loan payments and interest? (See Repayment Chart (PDF) for figures.)
For undergraduate students, two main loan options exist: federal loans (Stafford, Parent PLUS) and alternative or private loans.
Alternative Loans
We recommend federal loans over alternative loans. Here are a few reasons why:
- Federal loans have a capped interest rate (Stafford at 8.25%; PLUS at 9%); interest for alternate loans is usually not capped.
- Alternate loans generally require a co-signer.
- Federal loans are completely forgiven in the event of the death of student borrower or death/permanent disability of the parent borrower. In alternative loans, estate or co-signers become responsible for the debt.
- Alternative loan interest rates are generally higher for students because a student does not have an established credit history.
If you are considering an alternative loan, please contact a counselor at the Financial Aid Office at 503.251.5335 or finaid@multnomah.edu. Other viable options that carry less of a financial risk usually are available.
Stafford Student Loans
For more information regarding Stafford loans, please see "Facts About Your Loan."
To apply for a Stafford loan, click here.
