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.

The interest rate for subsidized loans disbursed on or after July 1, 2010 to undergraduate students is 4.5%. The interest rate will be 3.4% for subsidized funds disbursed to undergraduates on or after July 1, 2011.

The interest rate for undergraduate unsubsidized Stafford Loans and ALL Stafford Loans for graduate students 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 for undergraduate teacher's certification students; four credit hours/semester for graduate students), and lasts at least 10 years.  There is no penalty for pre-payment.

In order to receive Stafford Loans, you must meet the following criteria:

• You must have a valid FAFSA on file.  Use your PIN to sign your form electronically.  If you are a dependent student, your parent must use his/her PIN to sign your form as well.
• You must be enrolled at least half time, which is six credit hours/semester for undergraduate students and four credit hours/semester for grad 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:

1. Complete the FAFSA; If you will be enrolling in the summer of 2011, you'll need to file the 10/11 FAFSA.  The 11/12 FAFSA is required to obtain federal loans for the fall term, which starts in August.
2. Sign the Stafford Loan Master Promissory Note with Direct Loans.
3. Complete Direct Loan Entrance Counseling, which is an exercise that will explain your rights and responsibilities as a student loan borrower.

You will need your FAFSA PIN to sign into the website to access these documents, which we will receive electronically upon completion.
Both of these items, the MPN and Entrance Counseling, must be received by the Financial Aid Office before your loan can be processed. 

Graduate PLUS Loans

If you have borrowed your annual limit of Federal Stafford Loans, then you can apply for a Graduate PLUS Loan, which is a credit-based loan guaranteed by the federal government.  The terms are as follows:

• The current interest rate is a fixed 7.9%.  All PLUS Loans have an origination fee of 2.5%.
• Repayment begins 60 days after the final disbursement has been sent to North Park and the repayment term is up to 10 years.  You do have the option to defer payment while you are enrolled at least half-time (four credit hours/semester).  You can choose this option when you complete the PLUS Loan Application or by contacting Direct Loan Servicing (800-557-7394) AFTER the loan has been disbursed.  There is no penalty for pre-payment.

Two documents must be completed for this loan to be processed:  The Grad PLUS Loan Application and, if your loan is approved, the Grad PLUS Loan Master Promissory Note.  Both are completed online using your FAFSA PIN.

Parent 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 have an origination fee of 2.5%.

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, which is six credit hours for an undergraduate student.  This payment option can be requested on the PLUS Loan Application.  S/he can also contact Direct Loan Servicing (800-557-7394) to set up this payment option AFTER the funds are disbursed.

Completion of the FAFSA is required.

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 Parent PLUS Loan:

Your parent must complete the PLUS Loan Application with Direct Loans.
Your parent must also complete a PLUS Loan Master Promissory Note with Direct Loans.
Your parent will need his/her own FAFSA PIN to access these documents.  We will receive them electronically upon completion.

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.