Parents

Financing your child's college education promises to become one of the most important investments your family will make. We're here to help you along that journey!

Ten Points To Remember

PLUS Loans

For information on federal parent loan programs, parents can review the on-line version of the 2007-08 Student Guide from the Department of Education. PLUS Loans made on or after July 1, 2007 will be a fixed interest rate of 8.5%. Parents can also calculate the total cost of borrowing by utilizing a repayment calculator.

Private Loan Programs

The interest rate charged on most private educational loans is either tied to the "prime rate" (the interest rate at which a bank will lend money to its best customers) or the 3 month United States Treasury Bill ("T-bill")rate. For information on current and historical rates, visit the Federal Reserve's homepage.

Other Programs

For information on other private loans programs (where the student can be the borrower with a co-signer), go to the section on Loan Programs.

Monthly Payment Plans

BVU Plan

Families may want to consider using a combination of the BVU Plan and the PLUS loan to finance their expected family contribution.

General Financial Planning Tools for Parents

The Department of Education provides a general overview of methods for financing a college education in Getting Ready for College Early.

At www.collegeparents.org you can find college information for parents from start to finish.

For more information on the new, federal HOPE tax credit and other changes enacted by the tax cut bill recently passed by Congress, call 1-800-USA-LEARN.

There are many Internet sites which deal with the new "Education IRA". Visit Vanguard's site for a good summary of the program.

The U.S. Treasury Department's website has information on U.S. Savings Bonds.

Mapping Your Future features information on career planning, choosing a college, and financial aid programs.

The Financial Aid Information Page has a number of calculators which help families estimate their expected family contribution, how much they can afford to borrow, and how much they need to save.

The National Association of Student Financial Aid Administrators ("NASFAA") has published Cash for College and has several other sources of information available at http://www.nasfaa.org/SubHomes/DoItAffordIt/publiclinks.html

To learn more about a 529 Plan offered by the State of Iowa check the College Savings Iowa website.

Early Aid Estimator

Buena Vista University will provide, as a service to prospective students, an estimation of a student's potential aid eligibility. Families can complete the Early Aid Estimator form online from September through January. Results will be returned within two weeks.