Federal Subsidized Stafford Loan
This loan program provides low-interest loans to students who demonstrate financial need. Students may borrow up to a maximum of $3,500 per academic year for the first year of undergraduate study, $4,500 for the second year and $5,500 per year for the last two years. The student must begin repayment six months after he/she leaves college or drops below half-time status, and the student’s payment will be a minimum of $50 per month. The amount of the student’s monthly payment will be determined based upon the amount of student debt and the length of the repayment period.
Federal Perkins Loan
This low-interest loan is funded by the federal government and administered directly by the University. The amount of the loan is based on need and the availability of funds. Students must begin to repay this loan nine months after they leave college or drop below half-time status. The repayment of principal and interest may be extended over a 10-year period. The amount of each payment depends upon the amount of the student’s debt and the length of the student’s repayment period, but the student must pay a minimum of $40 per month.
Federal Unsubsidized Stafford Loan
This loan program offers low-interest loans to students who demonstrate little or no “financial need.” The terms and loan limits are the same as for the Federal Subsidized Stafford Loan except that the federal government does not pay interest on the borrower’s behalf while the borrower is enrolled in school. During that time, the student borrower can choose either to make quarterly interest payments or to “capitalize” interest. “Capitalizing” interest means the lender will add interest accrued to the principal balance. This will eliminate the need for interest payments while in school. Independent students are also eligible to borrow Federal Unsubsidized Stafford Loans. Students may borrow up to a maximum of $4,000 per academic year for the first and second years, and $5,000 per year for the third and fourth years. These amounts are in addition to the Federal Subsidized/Unsubsidized Stafford Loan amounts discussed above.
The Parent Loan Program for Undergraduate Student (PLUS)
The Federal PLUS Program provides loans to parents of dependent students to attend college. PLUS borrowers do not have to demonstrate need, but are subject to a credit analysis by the lending institution. The parent applying for the loan must fill out a PLUS Master Promissory Note as well as a Loan Amount Request Form. Repayment of this loan must begin within 30 days of the time the loan is fully disbursed. The borrowing limit is the total cost of attendance, minus any financial aid being received. Applications for these loans are available during the Financial Planning Appointment.