Federal Loans
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 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.
Freshmen (0-30 credit hours earned) – up to $3,500 per year
Sophomores (31-60 credit hours earned) – up to $4,500 per year
Juniors (61-90 credit hours earned) – up to $5,500 per year
Seniors (at least 91 credit hours earned) – up to $5,500 per year
Aggregate Lifetime Limit - $23,000
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.
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