If
a student needs additional funds to pay for college,
a student loan may be a needed funding option. Students
are encouraged to first borrow a Federal Stafford Loan
before borrowing an alternative loan from a private lender
due to the interest rates. The FAFSA is required for
all students wishing to borrow a federal loan.
Federal Stafford Loan
The Federal Subsidized Stafford Loan is a student loan in the student’s
name and has a fixed interest rate of 6.80%. The interest rate does not accrue
while the student is enrolled. There is a six month grace period after the
student graduates or ceases to be enrolled at least half-time (6 credit hours)
before repayment on the loan begins. Loan amounts are based on student status,
enrollment, and financial need.
Federal
Stafford Loans
Freshmen
(0-30 credit hours earned) – up to $5,500 per
year
Sophomores (31-60 credit hours earned) – up to
$6,500 per year
Juniors (61-90 credit hours earned) – up to $7,500
per year
Seniors (at least 91 credit hours earned) – up
to $7,500 per year
Aggregate Lifetime Limit - $31,000 (Dependent) and $54,000 (independent)
Federal Subsidized Stafford Loan
The Federal Subsidized
Stafford Loan is a student loan in the student’s
name and has a fixed interest rate of 6.80%. The interest
rate does not accrue while the student is enrolled. There
is a six month grace period after the student graduates
or ceases to be enrolled at least half-time (6 credit hours)
before repayment on the loan begins. Loan amounts are based
on student status, enrollment, and financial need.
Federal
Unsubsidized Stafford Loan
The
Federal Unsubsidized Stafford Loan is a student loan in
the student’s name and has a fixed interest rate
of 6.80%. The interest does accrue while the student is
enrolled. There is a six month grace period after the student
graduates or ceases to be enrolled at least half-time (6
credit hours) before repayment on the loan begins.
If
a student does not have financial need for a Subsidized
Stafford Loan, he/she can receive an Unsubsidized Stafford
Loan in the amounts listed above. Students, whose parents
have denied the PLUS Loan, can receive an additional
Unsubsidized Stafford Loan (up to $4,000 for Freshmen
and Sophomores and up to $5,000 for Juniors and Seniors).
Aggregate Lifetime Limit - $23,000
Federal Perkins Loan
The Perkins Loan is a fixed rate loan at 5% interest.
It is a simple interest loan in the student’s
name. 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 are awarded this loan based on financial
need and eligibility. Funding is limited so the loan is not guaranteed to be
renewed each year. Students must earn a 2.0 GPA to be considered.
Federal Parent Loan for Undergraduate
Students (PLUS) Loan
The PLUS Loan is a loan in the parent’s name.
The PLUS has a fixed interest rate of 8.5%. This
loan goes into repayment 60 days after the loan
is disbursed.
The amount of repayment depends on the total borrowed. For example, minimum
repayment on a $4,000 loan is $50 per month. There are no pre-payment penalties.
The amount of the loan is subject to loan approval. Both students and parents
must be US Citizens. If parents are determined to be ineligible for a PLUS
Loan, students may be eligible to receive additional Unsubsidized Stafford
Loan.
Choosing
a Lender for your Stafford Loan:
Choosing
a lender for your Federal Stafford Loan or for your parents
a Federal PLUS Loan can be a daunting task. To assist
you in choosing a lender, we have gathered a list of
lenders who we consider excellent institutions in the
education lending field.
Visit
our list
of lenders and a description on how those lenders
were chosen. Take time to consider the different benefits
and options each lender provides and determine which
lender is best for you.
Please
note that you are not required to use one of the lenders
on the list. You can choose to borrow from any lender
participating in the Federal Family Education Loan Program,
even if the lender is not listed on the preferred lender
list. Once you have chosen your lender for your Federal
Stafford Loan, please indicate your choice on the Stafford
Loan Request Form and return to the Financial Aid Office.
Your loan can not be certified until we receive written
notification of your choice.
Students
can view their total amount of federal loans borrowed
at http://www.nslds.ed.gov/nslds_SA/.
*As
with all student loans, students are encouraged to only
borrow what is absolutely needed.
