Student Financial Services

Before You Borrow

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Before You Borrow

If loans are part of your plan, you'll want to borrow wisely to keep your loan debt as low as possible. This information provides resources to assist in making borrowing decisions.

Cohort Default Rate

A cohort default rate is the percentage of a school's borrowers who enter repayment on federal student loans during a particular federal fiscal year (FY), October 1 to September 30, and default within the cohort default period.

The National Default Rate for FY2019 is 2.3%. Brown University's cohort default rate for that same period is 0.6%.

Please refer to studentaid.gov for a more in-depth description of cohort default rates.

Visit studentaid.gov

Borrow Wisely - Financial Considerations

If loans are part of your plan, you'll want to borrow wisely to keep your loan debt as low as possible. Assess your needs before you borrow, accept only the portion of loans that you need, and choose loans with the lowest interest rates and best borrower benefits.

Brown's Installment Payment Plan (IPP) enables students and their families to make interest-free monthly installments to cover each semester's tuition, housing, meals, and required fees. The Installment Payment Plan can reduce or replace the amount you may need to borrow through loans.

If you have borrowed loans and your student account has a credit balance (overpaid), think about reducing the amount you've borrowed. If you don't need the full amount, send a detailed email to our team to reduce your loans and lower your student loan debt.  

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Responsible Borrowing

 

Considerations of taking out loans.

Living @ Brown: Financial Considerations

Students may use their Brown ID to charge purchases at the Brown Bookstore directly to their University account. Bookstore charges are added to the monthly electronic billing statement sent by Student Financial Services. Textbook and supply costs for courses can vary. Textbooks can be rented or purchased,and some classes use online textbook and homework systems. Loan options may be available to assist in covering the cost of books and supplies; email Financial_Aid@brown.edu to explore loan options.

Brown encourages students to consider bringing a laptop to campus. Visit Brown's Technology Center, located in the Brown Bookstore to explore options. Students may contact the Office of Financial Aid for information about financial support for a laptop purchase.

How often will you come home during the academic year? The Office of Financial Aid's Paying for Travel page suggests options for funding travel expenses.

On campus, students use their Brown ID to ride University shuttles as well as any Rhode Island Public Transporta-tion Authority (RIPTA) bus or trolley anywhere in Rhode Island at no charge. Students are encouraged to review Brown's Transportation options as well as other local transportation options.

A variety of meal plan options are available to meet students needs. Before changing a selected meal plan to a lower cost meal plan, carefully consider a few things ahead of time: will you cook for yourself every day, how much does food cost in the Providence area, how will you get to the grocery store? If you change to a lower cost meal plan than the one initially purchased, you may or may not receive money back; reimbursement of the cost savings is posted to your student University Account and, if there is a balance due, will first reduce the amount owed on the bill. Additional information about Meal Plans

It can be helpful to plan for some medical costs during enrollment which may include copays for medical tests and services or unexpected costs such as dental surgery. Students can consult with their Brown health care providers at Health Services and Counseling and Psychological Services about managing these costs. Visits to Brown Health Services and Counseling and Psychological Services (CAPS) are paid for under the Health Services Fee are students are encouraged to use these services for their basic health care, counseling, and mental wellness needs. Charges for lab tests, x-rays, prescriptions, and care by community providers or hospitals may be covered by Brown's student health insurance plan (SHIP) or may be covered through your own health insurance plan.

Employment opportunities are open to all enrolled students. Students considering working on campus should visit Student Employment to search and apply for jobs, review the student and employer handbooks, and learn about timesheets, direct deposit request, and Federal I-9 and W-4. Campus employment provides students the opportunity to earn money to go towards their miscellaneous and non-billed expenses.

Many students find that they need to borrow money to cover educational costs.  More information on loans.

Electronic billing (E-Bill) is Brown University’s official method of billing; no paper statements are produced. Students are strongly encouraged to give “Authorized User” access to their student account and billing records to individuals who are providing financial support.  Billing and payment details can be found on our Student Account and EBill Schedule page.

Students and families periodically face unexpected expenses. If your family experiences a loss or change of job, reduction in income, unusually high medical or dental expenses, or other unanticipated circumstances that affect you financially, you may email the Office of Financial Aid at Financial_Aid@brown.edu – whether or not you are already receiving aid – to discuss options for assistance.

Other Resources

Glossary of Common Loan Terms

Acceleration:
Demand for immediate repayment of the entire unpaid balance of the loan.
Accrued Interest:
Amount of interest that has accumulated on a loan.
Borrower:
Person responsible for repaying a loan that has signed and agreed to the terms of the promissory note.
Capitalized Interest:
Unpaid accumulated interest added to the loan principal. Capitalizing interest increases the principal amount of the loan and, therefore, the total cost of the loan.
Consolidation:
The process of combining one or more federal loans into a single new loan.
Default:
Failure to repay a loan in accordance with the terms of the promissory note.
Deferment:
The temporary postponement of loan payments.
Delinquency:
This occurs when payments are late or missed, as specified in the terms of the promissory note and the selected repayment plan.
Disbursement:
When the school pays loan proceeds to the student or the parent borrower, or posts the funds to the student's account.
Discharge (Cancellation):
The release of a borrower from their obligation to repay their loans. A borrower must meet certain requirements to be eligible for discharge.
Disclosure Statement:
Statement of the actual cost of the loan, including the interest costs and the loan fee.
Endorser:
An endorser is someone who does not have an adverse credit history and agrees to repay the loan if the borrower does not repay it.
Entrance Counseling:
A mandatory information session which takes place before you receive your first federal student loan that explains your responsibilities
Exit Counseling:
A mandatory information session which takes place when you graduate or attend school less than half-time that explains your loan repayment responsibilities and when repayment begins.
Federal Direct Loan Program:
The Direct Loan Program is a federal program that provides loans to student and parent borrowers directly through the U.S. Department of Education. The Federal Direct loan program includes the Direct Susbidized Loan, Direct Unsubsidized Loan, Direct PLUS Loan, and Direct Consolidation Loan.
Forbearance:
An arrangement to postpone or reduce a borrower's monthly payment amount for a limited or specified period, or to extend the repayment period. The borrower is charged interest during forbearance.
Grace Period:
A specified period of time before the first payment must be made on a loan. Typically, the grace period starts the day after a borrower ceases to be enrolled at least half time.
Interest:
A loan expense charged by the lender and paid by the borrower for the use of borrowed money. The expense is calculated as a percentage of the principal amount (loan amount) borrowed.
Loan:
Money that must be repaid.
Loan Fee:
An expense of borrowing deducted proportionately from each loan disbursement.
Loan Principal:
The sum of money borrowed.
Master Promissory Note (MPN):
The Master Promissory Note (MPN) is a promissory note that can be used to make one or more loans for one or more academic years (up to 10 years).
Prepayment:
Any amount paid on a loan by the borrower before it is required to be paid under the terms of the promissory note.
Promissory Note:
A legally binding contract between a lender and a borrower. The promissory note contains the terms and conditions of the loan, including how and when the loan must be repaid.
Rehabilitation:
A program that enables defaulted borrowers of federal Perkins loans to bring their accounts current, to remove previously reported derogatory credit information, and to reinstate the remaining balance of privileges and benefits of the loan. Borrowers must request rehabilitation from their lender in writing. Additional information and/or rehabilitation agreements can be obtained from the Loan Office.
Servicer:
A company that collects payments on a loan, responds to customer service inquiries, and performs other administrative tasks associated with maintaining a loan on behalf of a lender.