Before accepting your aid award offer, you should consider the various types of aid that are available to you, and what this can mean for you and your family.
Scholarships and Grants are aid that do not need to be repaid. This is the best type of aid to receive, and it’s often referred to as “free money.” You’ll definitely want to accept any scholarships and grants that are offered. Sources of scholarships and grants are the federal government, state government, Otis College of Art and Design and Private Origanizations.
Federal Subsidized and Unsubsidized loans do need to be repaid and have different terms depending on the loan. For example, most subsidized loans do not accrue interest while you’re in school but unsubsidized loans do. For unsubsidized loans, the principal that you borrowed will increase over time as the interest accrues. This means you’ll owe more than you borrowed once you begin to repay.
Federal PLUS loan is available to parents of undergraduate students and to students enrolling in a graduate degree program. The applicant cannot have adverse credit. PLUS loans have a higher interest rate than subsidized and unsubsidized loans, and you must request a deferment if you’d like to begin repayment after graduation. Please note that interest will keep accruing on a PLUS loan while you’re not making payments, and the interest begins as soon as the funds are disbursed to the College. Applicants can borrow up to cost of attendance minus other aid.
Private educational loans are also available but are not listed on your award offer. These loans are based on credit. If your credit is not good enough, you'll need a co-signer. Various banks offer private educational loans, and their terms vary. You can set up a private loan to pay for your tuition balance and receive additional funds for other education-related expenses such as housing, books & supplies, etc.
If you are offered Federal work-study, understand that these funds will not lower your tuition cost. You earn these funds as you work, and receive payment when you submit your hours like in any other job. Work-study jobs are not guaranteed. They are first-come, first-served.
Otis Federal School Code: 001251