Montana's Choice PLUS Loans
TERMS AND CONDITIONS:
Direct Payment (ACH)
If ACH is rejected by the borrower's bank more than
once within the life of the loan, the interest rate reduction
is discontinued. The borrower may continue to use ACH, however.
On Time
On time is defined as no more than 30 days delinquent.
Late Fees
If a payment is delinquent, a late fee of 5% of the payment amount will be charged on loans disbursed on or after July 1, 2008
Eligibility
You must be a U.S. citizen or permanent resident and the parent of an undergraduate student who is enrolled full- or half-time in an accredited school. A credit check is required.
Loan Limits
Up to the total cost of the student's education, less any other aid the student receives.
Interest Rate
For loans disbursed on or after July 1, 2006:
During in-school or deferment period: Fixed 8.5%
During repayment period: Fixed 8.5%
Fees
Origination fee: 3%
Default fee: 1%
Repayment Terms
Loan(s) may be repaid over a maximum of 10 years. Repayment begins 30-45 days after the loan is fully disbursed.
New loan programs listed above are subject to change without notice, based on regulatory changes to the Federal Higher Education Act and/or upon financial market volatility impacting the earnings of lenders in the Montana's Choice program.
Benefits granted on loans already disbursed are paid out of excess funds from financed bonds and are subject to change or elimination at any time based upon the availability of such funds. Benefits are payable as long as the loans are owned by MHESAC or a participating Montana's Choice lender.