FINANCIAL AID 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans

Direct Loans (manage your federal student loans)

 

Federal Student Loan Programs


Federal Perkins Loan – a federal need-based low-interest loan program. Repayment does not begin and interest does not accrue until nine months after the student graduates or drops below half-time enrollment. Students must be enrolled at least half-time to qualify. Repayment may be deferred during enrollment in graduate school. Other deferment options are available such as unemployment and disability. Graduates employed full-time in some areas of teaching, medical technology and law enforcement may qualify to have all or a portion of their loan principal and interest canceled for each year of service. Funding is limited; early application is necessary, and the Free Application for Federal Student Aid (FAFSA) is required.

Federal Subsidized Stafford Loan – a federal need-based low-interest loan program. Loans are obtained from a lending institution such as a bank or credit union. Repayment does not begin and interest does not accrue until six months after the student graduates or drops below half-time enrollment. Students must be enrolled at least half-time to qualify. Repayment may be deferred during enrollment in graduate school. Other deferment options are available such as unemployment and disability. The interest rate is fixed at 6.8% (effective July 1, 2006). Annual loan maximums are given below:
• Level 1 (0-29 semester hours earned) $3500
• Level 2 (30-59 semester hours earned) $4500
• Level 3 (60 and above semester hours earned) $5500
Federal regulations mandate that the loan be disbursed in at least two equal payments (usually half of the proceeds in the fall semester and the other half in the spring semester). A processing fee not to exceed four percent will be deducted by the lender from the proceeds of the loan. The lifetime aggregate limit is $23,000. The FAFSA is required.

Federal Unsubsidized Stafford Loan – a federal non-need based loan program. All terms as stated under the Subsidized Stafford Loan apply to this loan as well, except that this loan is NOT interest-free while the student is enrolled. Interest does begin to accrue within 60 days of receiving loan proceeds. Payment of interest, however, may be deferred or capitalized. Students not qualifying for the full amount of Subsidized Stafford Loan may borrow the remaining annual maximum amount in an unsubsidized loan. Federal regulations mandate that the loan be disbursed in at least two equal payments (usually half of the proceeds in the fall semester and the other half in the spring semester). A processing fee not to exceed four percent will be deducted by the lender from the proceeds of the loan. Annual maximums vary for dependent and independent students. The FAFSA is required.

Federal PLUS Loan – a federal non-need based low-interest loan program for parents of undergraduate students. Parents without adverse credit history (determined by the lender) may borrow an amount not to exceed the difference between the total financial aid budget and all other financial assistance the student is expected to receive. The loan is obtained from a lending institution. The interest rate is fixed and is capped at 8.5% (effective July 1, 2006). Repayment begins within 60 days after receiving the final disbursement with a minimum payment of $50 per month (minimum payment is based upon the total amount borrowed and therefore may be higher than $50 for some borrowers). Federal regulations mandate that the loan be disbursed in at least two equal payments (usually half of the proceeds in the fall semester and the other half in the spring semester). A processing fee not to exceed four percent will be deducted by the lender from the proceeds of the loan. The FAFSA is required.

 

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