A loan is a form of financial assistance which must be repaid and should only be accepted with the full realization of that responsibility.
FEDERAL PERKINS LOAN PROGRAM: Federal Perkins Loans are available to undergraduate and graduate students. Awards are determined by the Financial Aid Office based upon financial need and availability of funds. Borrowers must sign a promissory note for the loan, which is interest-free as long as they are enrolled at least half-time at any eligible institution. Repayment of the principal plus 5% interest per year begins nine months after the student leaves school or graduates. Repayment is determined by federal regulations.
FEDERAL DIRECT STAFFORD LOAN (Subsidized): The Federal Direct Stafford Loan enables undergraduate and graduate students enrolled at least half-time to borrow directly from the federal government. To be eligible, students must demonstrate financial need. The school determines financial need based on the information provided on the FAFSA. The federal government pays the interest on these loans while students are in school and during certain periods, such as grace and deferment (a postponement of repayment). Undergraduate freshmen are limited to loans of $2,625; sophomores (24-59.5 credits) are limited to $3,500; junior and senior undergraduates (students with 60 credits or more) are limited to $5,500. Graduate students are eligible to receive up to $8,500 per year. Undergraduates are limited to a cumulative total of $23,000 in Federal Direct Stafford Loans, and there is a $65,500 cumulative total for undergraduate and graduate study. Federal Direct Loans are interest-free until six months after graduation or the time the student leaves school. An origination fee of 4% is assessed at the time the loan is made. This money goes to the federal government to help reduce the cost of supporting this low-interest loan. Interest rates are variable and are adjusted each year on July 1.
FEDERAL DIRECT STAFFORD LOAN (Unsubsidized): To be eligible, students do NOT need to demonstrate financial need. However, students are obligated to pay all interest even while enrolled, which differs from the subsidized loan. The same borrowing limits apply less amounts borrowed under the subsidized program. For example, a freshman may borrow a maximum of $2,625 per year in combination of both programs. Independent undergraduates may be eligible for higher limits.
FEDERAL DIRECT PLUS LOAN: The Federal PLUS Loan program enables credit-worthy parents of dependent students to borrow. A PLUS Loan may not exceed the student's estimated cost of attendance minus any estimated financial assistance the student has been or will be awarded during the period of enrollment. This includes the no-need Federal Direct Unsubsidized Stafford Loan. Funds are borrowed directly from the federal government. An origination fee is assessed at the time the loan is made. Interest rates may vary from year to year and will be determined by the federal government. You may contact the Financial Aid Office for the PLUS Loan Request Form.
An insurance fee and an origination fee are assessed at the time the loan is made. Interest rates may vary from year to year and will be determined by the Federal Government. The interest rate cannot exceed 10%. Information regarding interest rates, deferments, and repayment terms is available from private lenders. Loans are co-payable to the parent and the school. Applications are available from lenders and the Financial Aid Office.