Types of Aid

Grants

• Grants are need-based awards funded by the federal or state governments. Grants are gift aid and do need to be paid back.
• Pell Grant: A federal grant based on need; amounts range from $976-$5350/year
• Illinois Monetary Award Program (MAP): A need-based grant for Illinois residents (residency according to the standards set by the State of Illinois); up to $4968/year

Loans

Stafford Loans:

• If you are given a subsidized Stafford Loan, which is based on need, the government pays the interest while you are a student. If you receive 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 Stafford Loans first disbursed on or after July 1, 2008 is 6%. 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 1% for the 08/09 academic year. The origination fee is only .5% for the 09/10 academic year.
• Loan limits are determined by the federal government, and are based on completed college credit hours. Students with 0-29 completed college credit hours can borrow up to $3500/year in a subsidized loan and $6000/year in an unsubsidized loan. Students with 30-59 completed college credit hours can borrow up to $4500/year in a subsidized loan and $6000/year in an unsubsidized loan. Students with 60 or more completed college credit hours can borrow up to $5500/year in a subsidized Stafford Loan and $7000 in an unsubsidized Stafford Loan.
• You do not have to make payments on your Stafford Loans while you are in school. Repayment begins six months after you cease to be enrolled at least half- time, and lasts at least 10 years.
• To apply for the Stafford Loan for the 08/09 academic year, you must complete a Stafford Loan Master Promissory Note (MPN) with a lender of your choosing. We recommend Citibank, Chase, or Wells Fargo, but you can use any lender you'd like. In addition, you must complete Stafford Loan Entrance Counseling, which will explain your rights and responsibilities as a student loan borrower.
• If you need a loan for the 09/10 academic year, you must complete a Direct Loan Master Promissory Note and Direct Loan Entrance Counseling before your loan can be processed.

Parent PLUS Loans:

• If you are a dependent student, your parent may borrow 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 packaging. 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 8.5%. PLUS Loans for the 08/09 academic year have an origination fee of 3%. PLUS Loans for the 09/10 academic year have a 2.5% origination fee.
• 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. If your parent borrows a PLUS Loan for the 08/09 academic year, s/he can contact his/her lender to set up this payment option. If your parent has a PLUS Loan for the 09/10 academic year, s/he can 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.
• If your parent would like to borrow a PLUS Loan on your behalf for the 08/09 academic year, s/he must complete a PLUS Loan Master Promissory Note with a lender of his/her choosing. We recommend Citibank, Chase, and Wells Fargo, but s/he can use any lender s/he'd like.
• If your parent would like to borrow a PLUS Loan on your behalf for the 09/10 academic year, s/he must complete a PLUS Loan Master Promissory Note with Direct Loans.

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 require interest payments while you are enrolled. The length of repayment is usually 10 years.
• SimpleTuition is an online tool that can help you find the right private loan product to meet your needs.