Student Loans
Stafford Loans
Many students access Stafford Loans to help pay the cost of their education. Guaranteed by the federal government, the Stafford Loan program offers several attractive features:
You do not have to make payments on your Stafford Loans while you are in school. Further, you may be able to defer your payments on previous Stafford Loans while you are in school (as long as you are enrolled at least half time).
If you are awarded a subsidized Stafford Loan, the government pays the interest while you are a student.
If you received an unsubsidized Stafford Loan, interest will accrue throughout the life of the loan. However, you are not required to make interest payments while in school.
Subsidized loans first disbursed on or after July 1, 2009 have an interest rate of 5.6%. The interest rate for unsubsidized Stafford Loans is a fixed interest rate of 6.8%. All Stafford Loans have an origination fee of .5%.
Annual loan limits are set by the federal government, and are also dependent on the cost of attendance for your academic program.
Repayment starts six months after you cease to be enrolled at least half- time (six credit hours/semester), and lasts at least 10 years.
In order to receive Stafford Loans, you must meet the following criteria:
- You must have a valid 2009-2010 FAFSA on file.
- You must be enrolled at least half time, which is six credit hours/semester for undergraduate students.
- You must be pursuing a degree or certificate.
- You must maintain Satisfactory Academic Progress.
Students who are in default on previous or current student loans are not eligible for additional Stafford Loans. If you have a loan in default, please contact your lender to make payment arrangements. Once we receive confirmation that your loan is in good standing, you will be eligible for additional Stafford Loan funds.
How to obtain Stafford Loans:
- Complete the 2009-2010 FAFSA
- Sign the Stafford Loan Master Promissory Note with Direct Loans
- Complete Direct Loan Entrance Counseling, which is an exercise that will explain your rights and responsibilities as a student loan borrower.
Both of these items, the MPN and Entrance Counseling, must be received by the Financial Aid Office before your loan can be processed.
PLUS Loans
If you are a dependent student, your parent may borrow a PLUS Loan on your behalf for up to your cost of attendance minus any other aid that you are receiving. Cost of attendance includes tuition, room/board, personal expenses, transportation, and books. Not all of these costs will appear on your bill and can vary for each student, but these figures are used by the Financial Aid Office for awarding. The cost of attendance is usually higher than your direct costs to allow you to borrow funds for additional expenses. Your financial aid cannot exceed your cost of attendance.
To be eligible to borrow a PLUS loan, your parent must not have adverse credit. If s/he is denied for the PLUS loan, you will eligible for an additional unsubsidized Stafford Loan.
The current interest rate is a fixed 7.9%. All PLUS Loans for the 08/09 academic year have an origination fee of 2.5%.
There is no penalty for early repayment. Repayment begins 60 days after the final disbursement of the loan is received, and the repayment term is up to 10 years. Parents do have the option to defer payment on the PLUS Loan while you are enrolled at least half-time. S/he must contact Direct Loan Servicing (800-557-7394) to set up this payment option.
Completion of the FAFSA is not required (but recommended).
There must be a PLUS Loan Master Promissory Note (MPN) on file for each student. Your parent may not use the same PLUS promissory note for more than one student. The MPN can be completed online.
How to obtain a PLUS Loan:
- Your parent must complete a PLUS Loan Master Promissory Note with Direct Loans.
- Your parent must submit the PLUS Loan Request Form to the Financial Aid Office so that we know how much your parent would like to borrow for the 2009-2010 academic year.
Private Loans
Interest rate and repayment terms vary by lender, and are not as favorable as the PLUS and/or Unsubsidized Stafford Loans.
Most undergraduate students will need a credit-worthy cosigner to be approved for this loan.
Typically, you can borrow up to your cost of attendance (minus other aid received), but you may not use the loan to cover previous balances.
Payment typically begins six months after you have graduated. However, some lenders will require payments while you are enrolled.
The length of repayment is generally 10 years.
Student Lending Analytics provide valuable information about private loans.
SimpleTuition is an online tool that can help you find the right private loan product to meet your needs.