Loans help parents help students

If students have maxed out their loan possibilities, their parents might be able to receive a loan to help cover the cost of their education.

Nadine Hamrick, associate director of financial aid, said this is another benefit available to students who might be running out of options.

"When our office [Financial Aid Office] has done all that it can do, and there is no more money available to the student, parents can take out a loan to help fulfill the needs of their student," she said.

Hamrick said 562 students have parent loans. The total money borrowed is approximately $4 million.

Missy White, financial aid assistant II, said if they have taken out the maximum amount of loans available. Parents can take out a parent loan even if their student is still able to receive more loan money.

"The loan is in the parents' name," White said. "The parents are responsible for paying it back."

White said the main difference between student and parent loans is the amount of money a person can borrow on each loan.

"Student loans are based on the student's year in school," she said. "Parent loans are based on the student's cost of attendance minus any financial aid they will receive."

White said student loans are normally about $2,500,. but parents loans can be $10,000 or more.

The only drawback to the program is repayment on parent loans begins 60 days after the loan has been issued, she said.

The interest rate on parent loans is 4.17 percent.

The interest rate will change after July 1, White said. She said she expects the interest rate will increase slightly at the beginning of the year, but the program has a 9 percent cap.

White said parent loans are beneficial for out-of-state students because their cost of attendance is higher, and they are not eligible to participate in programs such as the Promise Scholarship or the West Virginia Higher Education Grant.