For Parents
Many Frostburg State parents are actively involved in their children's lives, especially when it involves college finances.
To help you be informed about financial aid, we offer this page of information and links that parents of Frostburg State students often find useful.
Your Student's Financial Aid Information
We send most of our correspondence regarding students' financial aid directly to students via email. If you want to stay informed and help your student manage their financial aid, there are a few things to know.
Requesting Information About Your Student
FERPA stands for the Family Educational Rights and Privacy Act (1974). This law was designed to protect the privacy of the educational records of students. Due to FERPA regulations, we cannot release any information to anyone other than the student unless the student has completed FSU's Release of Information form giving us permission to release his or her information to that specific individual. This means that in order for a parent to call and ask questions about a student's financial aid that parent must be listed on that student's Release of Information form.
Accessing Your Student's Financial Information
In order for a parent to call and ask questions about a student's financial aid, that parent must be listed on that student's Release of Information form. A student can complete a Release of Information form by logging into their PAWS account, selecting "Student Services Center", and completing the Release of Information under the drop down box listed in the "Academics" section of the web page. This Release of Information form expires each June 30, and must be completed again July 1 of every year.
Financial Planning and Tax Benefits for Education
While our office encourages every student to apply for financial aid, we realize that not every student will qualify for need-based grant or academic scholarship funding. FSU understands both the value of higher education and the financial burden placed on families as a result of shouldering the primary responsibility of paying for college. Below you will find resources to help you understand how to save for college, understand the costs associated with college attendance, as well as how to take advantage of any tax incentives offered to parents or students who must pay qualified tuition expenses out-of-pocket.
- Prepare for College (with checklists and tips for budgeting)
- Understanding College Costs
- College Savings Plans
- IRS Benefits for Education Center
Parent PLUS vs Alternative Loans
Our office recommends that parents borrow through the Parent PLUS Loan Program instead of having students borrowing an Alternative Loan, if possible.
Please review the comparison chart to see the differences between each loan program.
| . | Parent PLUS Loan | Alternative Loan |
|---|---|---|
| Responsible Party | parent | student |
| Co-signer | none required | required in most cases |
| Interest Rate and Rate Caps | Low, variable interest rate set annually; Will never exceed 9% |
Low, variable rate set quarterly or monthly; Higher than PLUS loans; Could reach 21% |
| Accrued Interest | Accrued interest capitalizes once at final repayment |
Accrued interest may be capitalized monthly, quarterly, or once at repayment |
| Loan Payments and Terms | Shorter repayment term means higher monthly payments but lower finance charges | Longer repayment term means lower monthly payments but higher finance charges |
| Approval Criteria | Credit check based on federal standards; No debt-to-income ratios or credit scoring |
Based on student’s credit history and debt-to-income ratio |
| Applying for a Loan | Master Promissory Note is good for 10 years; No annual paperwork to complete |
Must re-apply each year for additional funds |
| Borrowing Limits | Parents may borrow up to the cost of education less any financial aid received | Students may borrow up to the full cost of education less financial aid awarded, depending on debt-to-income ratio and co-signer quality |
| Repayment | Parent is responsible; Repayment begins 60 days after loan is fully disbursed |
Student is responsible; Repayment can be deferred up to six months after leaving school; A parent can act as co-signer |
| Payment Flexibility | Income-sensitive; Graduated and extended repayment options are available |
Several payment options are available |
| Payment Deferment Situations | Lender may offer delayed payment options for up to four years through forbearance | No deferment during unemployment or economic hardship; Payment may be deferred while student is enrolled at least half-time |
| Payment Insurance | Federally insured against death and disability for both the parent and the student |
Not federally insured and offer no discharge in the event of disability or death |
| Prepayment Penalty | No prepayment penalty | No prepayment penalty |
| Consolidation | Parents have the ability to lock into a fixed rate | Loans cannot be consolidated |