UpDate - Vol. 11, No. 24, Page 5
March 19, 1992
Financing options available through new Delaware Plan

     The Delaware Plan, which offers University undergraduates and their
families several flexible options in financing college education, is now in
place and ready for the fall semester, according to N. Bruce Walker, dean of
admissions and financial aid.
     An agreement was signed last week with CoreStates First Pennsylvania
Bank, which is the lending institution for the plan.
     "This partnership with CoreStates will enable all full-time,
undergraduate students, whether or not they receive financial aid, and their
families to help meet the costs of their education," Walker said.
     "As college costs everywhere continue to escalate, the University has
become increasingly  aware that paying for a college education by traditional
means is difficult for many families. The plan, which has been developed in
response to the needs of University students and their parents in budgeting
educational expenses, offers a variety of choices to suit their particular
financial requirements," Walker said.
     The program offers an installment payment plan, lines-of-credit through
CoreStates for direct and other educational expenses, and a guaranteed
prepaid tuition plan where funds may be borrowed from CoreStates or paid in
full by cash for two, three or four years.
     The installment plan has been offered for several years, Walker said,
but the plan is being more widely publicized this year. Semester educational
expenses are billed through the University in four installments for the fall
semester and four installments for the spring semester, at an additional cost
of $40 each semester.
     Lines of credit available from CoreStates are open to all full-time
University students for direct educational expenses (tuition, residence,
dining and required fees) and for other educational expenses (books,
supplies, computers). A good credit rating is required.
     Borrowers may take up to 10 years to repay. The interest rate for a loan
for direct educational expenses is the prime plus 1 percent, which is a lower
rate than traditional loans, Walker said. Another option is taking out a
second mortgage or home equity loan where interest may be tax-deductible.
     For loans for other educational expenses, the interest rate is the prime
plus 2.5 percent.
     The guaranteed prepaid tuition plan allows families to pay for, or to
borrow, up to the full amount of tuition at the current rate for two, three
or four years, thus assuring that their tuition costs will remain at the
present level.
     A second mortgage or home equity loan option also is available for this
plan.
     A University committee has been working for 18 months to develop the
Delaware Plan, Walker said. The committee talked to several banks and
received bids on the plan, and CoreStates fulfilled all the requirements of
the Delaware Plan, Walker said.
     Other committee members were Ramona Adams, assistant treasurer; J.
Robert R. Harrison, treasurer; Michael Lee, director of scholarships  and
financial aid; and Alvin  Roberson, associate treasurer.
     A mailing detailing the plan has been sent to all admitted students and
families. Further information and applications are available at the
admissions office.
     -Sue Swyers Moncure