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Many students find they must supplement the resources they have to meet the expenses associated with a quality college education through taking advantage of low interest educational loans. Students may borrow funds under the Federal Direct Stafford Loan Program even if they have not established a credit record. Repayment on the Federal Stafford Loan is deferred as long as the student is enrolled in college at least half-time. The FAFSA (Free Application for Federal Student Aid) is required for all students wishing to borrow a federal loan.
Federal Direct Stafford (Student) Loan:
The Federal Direct Stafford Loan enables students who are enrolled at least half-time and degree seeking to borrow low interest loans. Payment on these loans begins six months after graduation or after a student is no longer enrolled at least half-time.
Federal Stafford Loan Limits*:
Dependant Student |
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| Freshmen (0-30 credit hours earned) |
Up to $5,500 a year |
($3,500 subsidized) |
| Sophomores (31-60 credit hours earned) |
Up to $6,500 a year |
($4,500 subsidized) |
| Junior (61-90 credit hours earned) |
Up to $7,500 a year |
($5,500 subsidized) |
| Senior (at least 91 credit hours earned) |
Up to $7,500 a year |
($5,500 subsidized) |
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Aggregate Lifetime Limit:
$31,000 as a dependent undergraduate student
(only $23,000 of this amount may be in subsidized loans)
*Loan limits cannot exceed Cost of Attendance (COA) as calculated by CSU.
Independant Student |
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| Freshmen (0-30 credit hours earned) |
Up to $9,500 a year |
($3,500 subsidized) |
| Sophomores (31-60 credit hours earned) |
Up to $10,500 a year |
($4,500 subsidized) |
| Junior (61-90 credit hours earned) |
Up to $12,500 a year |
($5,500 subsidized) |
| Senior (at least 91 credit hours earned) |
Up to $12,500 a year |
($5,500 subsidized) |
| Graduate Student |
Up to $20,500 a year |
($8,500 subsidized) |
Aggregate Lifetime Limit:
$57,500 as an independent undergraduate student
(only $23,000 of this amount may be in subsidized loans)
$138,500 for graduate students (no more than $65,500 may be subsidized; includes loans for undergraduate students
*Loan limits cannot exceed Cost of Attendance (COA) as calculated by CSU.
There are two types of Stafford Loans:
Federal Subsidized Stafford Loan: (need based)
The Federal Subsidized Stafford loan is a loan for students with financial need, as determined by the results of the FAFSA, student status and other financial aid (such as grants, scholarships) that you receive. The loan is in the student’s name and has a fixed interest rate of 4.5%. The interest rate does not accrue while the student is enrolled at least half-time (undergraduate student = 6 credit hours; graduate student= 3 credit hours). An origination fee of 1 %, will be deducted by the US Department of Education prior to disbursement of the Subsidized Stafford Loan. There is a six month grace period after the student graduates or ceases to be enrolled at least half-time before repayment on the loan begins.
Federal Unsubsidized Stafford Loan (non-need based)
The Federal Unsubsidized Stafford loan is a loan in the student’s name and has a fixed interest rate of 6.8%. The interest rate does accrue while the student is enrolled. The student must be enrolled at least half-time (undergraduate student= 6 credit-hours; graduate student= 3 credit hours). An origination fee of 1 % will be deducted by the US Department of Education prior to disbursement of the Unsubsidized Stafford Loan. There is a six month grace period after the student graduates or ceases to be enrolled at least half-time before repayment on the loan begins.
Students must file the FAFSA (Free Application for Federal Student Aid) each academic year to be eligible to apply for the Stafford Loan.
Master Promisory Note (MPN) and Entrance Counseling are required.
For the 2010-2011 financial aid year ALL (new and continuing) students interested in receiving a Federal Stafford Loan are required by federal regulation to complete a Master Promissory Note (MPN) and Entrance Counseling. Continuing students must complete a new Master Promissory Note (MPN) and Entrance Counseling even if these documents have been completed in the past.
These documents can be completed by linking from the highlighted documents above or by going to the following website:
www.studentloans.gov
The promissory note is a legal, binding document whereby you agree to repay the loan.
The College Cost Reduction and Access Act of 2007 gradually reduced the fixed interest rates on newly originated subsidized Stafford loans for undergraduate students to 4.5% in 2010-2011 and 3.4% in 2011-2012; however, the rate will return to 6.8% in 2012-2013. These reductions are available only to undergraduate students, not graduate students, and only for subsidized Stafford loans, not unsubsidized Stafford loans unsubsidized Stafford loans remain at a fixed rate of 6.8%.
Changing Loan Amounts: You are encouraged to only borrow the funds needed to pursue your education. If the loan approval is more than you desire, you may reduce the amount by called the CSU Financial Aid Office at 843-863-7050 or 1-800-947-7474 or email at financialaid@csuniv.edu.
Federal Perkins Loan (need based)
The Perkins Loan is a fixed rate loan at 5% interest. Undergraduate students are awarded this loan based on financial need and eligibility. Funding is extremely limited so the loan is not guaranteed to be renewed each year. Students must earn a 2.0 GPA to be considered. There is a nine month grace period after the student graduates or ceases to be enrolled at least half-time (6 credit hours) before repayment begins.
Students must complete the FAFSA (Free Application for Federal Student Aid) to be considered. Based on eligibility and availability of funds the student will be awarded the Federal Perkins Loan on their financial aid Award Letter. The student must complete a Perkins Loan Master Promissory Note and Perkins Loan Entrance Counseling before funds can be disbursed to the student’s account. Instructions for completing these documents will be on the student’s financial aid Award Letter and My Financial Aid (CSU’s On-Line Financial Aid portal).
The promissory note is a legal, binding document whereby you agree to repay the loan.
Changing Loan Amounts: You are encouraged to only borrow the funds needed to pursue your education. If the loan approval is more than you desire, you may reduce the amount by called the CSU Financial Aid Office at 843-863-7050 or 1-800-947-7474 or email at financialaid@csuniv.edu.
Federal Direct (PLUS)Parent Loan for Undergraduate Students
The Federal Direct PLUS Loan is a federal loan that enables credit-worthy parents to borrow low-interest loans for their dependent student. The parent may borrow up to the student’s Cost of Attendance (COA) at CSU minus any financial aid the student may receive during the loan period. The PLUS Loan is a loan in the parent’s name. The PLUS loan has a fixed interest rate of 7.9%. Interest begins to accumulate when the first disbursement is made. An origination fee, up to 4%, will be deducted by the US Department of Education prior to disbursement of the PLUS loan. Generally, repayment of Federal Direct PLUS Loans begins 60 days after the final disbursement for the school year in which it was awarded. Credit approval is valid for 6 months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding 6 months.However, more flexible repayment options are available by contacting the Direct Loan Servicing Center at 1-800-848-0979 or www.dl.ed.gov.
The student must be enrolled at least half-time (6 credit hours) and must also be degree seeking in order for the parent to be eligible to apply for the PLUS Loan.
Students must file the FAFSA (Free Application for Federal Student Aid each academic year to be eligible for the parent to apply for the Federal PLUS (Parent) Loan.
Master Promissory Note (MPN) required.
For the 2010-2011 financial aid years all Direct PLUS borrowers (new and continuing) are required by federal regulation to complete a Master Promissory Note (MPN). Parents of continuing students must complete a new Master Promissory Note (MPN)even if the MPN has been completed in the past.
The MPN can be completed by linking from the highlighted document above or by going to the following websites:
www.studentloans.gov
The promissory note is a legal, binding document whereby you agree to repay the loan.
If a parent is denied a Federal Direct PLUS Loan, the student may be able to borrow additional Stafford Unsubsidized loan Funds in the following maximum annual amounts:
Freshmen & Sophomore: $4,000 annual Maximum
Junior & Senior: $5,000 annual Maximum
Changing Loan Amounts: You are encouraged to only borrow the funds needed to pursue your education. If the loan approval is more than you desire, you may reduce the amount by called the CSU Financial Aid Office at 843-863-7050 or 1-800-947-7474 or email at financialaid@csuniv.edu.
Federal Direct Graduate (PLUS) Loan
The Federal Direct Graduate PLUS Loan allows graduate and professional degree students to borrow under the PLUS Loan Program up to their Cost of Attendance (COA) minus any financial aid the student may receive during the loan period. The Graduate PLUS Loan is a loan in the parent’s name. The Graduate PLUS Loan has a fixed interest rate of 7.9%. Interest begins to accumulate when the first disbursements are made. Before applying for the Graduate PLUS Loan, the student must have applied for their annual loan maximum eligibility under the Direct Federal Subsidized and Unsubsidized Stafford Loan Program. An origination fee, up to 4%, will be deducted by the US Department of Education prior to disbursement of the Graduate PLUS loan. Generally, repayment of Federal Direct Graduate PLUS Loans begins 60 days after the final disbursement for the school year in which it was awarded. Credit approval is valid for 6 months. Your credit is evaluated every time you request a new loan unless you have had a credit decision within the preceding 6 months. However, more flexible repayment options are available by contacting the Direct Loan Servicing Center at 1-800-848-0979 or www.dl.ed.gov
The graduate student must be enrolled at least half-time (3 credit hours) and must also be degree seeking in order for the parent to be eligible to apply for the PLUS Loan.
Students must file the FAFSA (Free Application for Federal Student Aid each academic year to be eligible for the parent to apply for the Federal PLUS (Parent) Loan.
Master Promissory Note (MPN) required.
For the 2010-2011 financial aid years all Direct Graduate PLUS borrowers (new and continuing graduate students) are required by federal regulation to complete a Master Promissory Note (MPN). Parents of continuing graduate students must complete a new Master Promissory Note (MPN) even if the MPN has been completed in the past.
The MPN can be completed by linking from the highlighted document above or by going to the following websites:
www.studentloans.gov
The promissory note is a legal, binding document whereby you agree to repay the loan.
Changing Loan Amounts: You are encouraged to only borrow the funds needed to pursue your education. If the loan approval is more than you desire, you may reduce the amount by called the CSU Financial Aid Office at 843-863-7050 or 1-800-947-7474 or email at financialaid@csuniv.edu.
Students can view their total amount of federal loans borrowed at http://www.nslds.ed.gov/nslds_SA/
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