Parent Loans

Hampshire College realizes that the cost of attending college may require families to borrow some or all of their estimated family contribution. We advise that the overall borrowing done by the student be kept to a minimum.

There are several types of loans that a parent may borrow on behalf of a student or co-sign with a student. These include the Federal Parent PLUS loan, a state-sponsored education loan, a home equity loan, and a private alternative loan.

Our suggested hierarchy of loan borrowing is:

1. Student maximizes their Direct student loan;
2. Parent borrows a Direct PLUS loan to cover balance of bill;
3. If additional funds are needed consider the monthly payment plan, a home equity loan, or a private alternative loan.

Your goal is to determine which loan best fits your current and future needs, take some time to review the information provided on this website. Begin with reviewing The Loan Process and Comparison of Various Financing Options.

Financing Tip: If you are planning to borrow an education loan, you may also want to consider a monthly payment plan to reduce the amount you need to borrow. For example, if you are planning to borrow $10,000 but can afford a $200 monthly payment for 10 months (for a $2,000 monthly payment plan) you would then just need to borrow $8,000 instead of borrowing the full $10,000. The reduced loan amount will reduce your future interest charges and your future monthly loan payments.

For a PLUS or private alternative loan, the maximum loan amount is the cost of education less estimated financial aid (including loans). Each PLUS or private alternative loan requires that Hampshire's loan counselor certify the loan amount and the enrollment of the student. Most loans require the student to be making satisfactory academic progress according to Hampshire's guidelines.