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, 2011, is 3.4%. The interest rate for unsubsidized Stafford Loans is a fixed interest rate of 6.8%. All Stafford Loans have an origination fee of 0.5%.
• Loan limits are determined by the federal government, and are based on completed college credit hours.
  
  

  Completed College Credit Hours	Base Amount	Additional Unsubsidized Loan	Total
  0-29	$3,500	$2,000	$5,500
  30-59	$4,500	$2,000	$6,500
  60+	$5,500	$2,000	$7,500

  
  
• 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, which is six credit hours/semester for undergraduates, and lasts at least ten years. There is no penalty for pre-payment.
• You must complete a Direct Loan Master Promissory Note and Direct Loan Entrance Counseling, both of which are done online, before your loan can be processed. You will need your FAFSA PIN to sign into the website and complete these loan documents. 

Perkins Loans

• Need-based loans given to first- and second-year students; amounts vary
• Perkins Loans are deferred while you are in school
• The current interest rate is 5%, and interest will begin to accrue when you begin repayment
• Repayment will begin nine months after you cease to be enrolled at least half-time, which is six credits/semester for undergraduates, and lasts at least ten years
• North Park University maintains the promissory notes for this federal loan program; ACS is the servicer of these loans
• You must complete a Perkins Loan Master Promissory Note and Perkins Loan Entrance Counseling before your loan can be processed

Federal Nursing Loans

• Need-based loans given to third- and fourth-year Nursing students; amounts vary
• Nursing Loans are deferred while you are in school
• The current interest rate is 5%, and interest will begin to accrue when you begin repayment
• Repayment will begin nine months after you cease to be enrolled at least half-time, which is six credits per semester for undergraduates, and lasts at least ten years
• North Park University maintains the promissory notes for this federal loan program; ACS is the servicer of these loans
• You must complete a Nursing Loan Master Promissory Note, Nursing Loan Entrance Counseling, and a Self Certification Form (provided by the Financial Aid Office) 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 7.9%. All PLUS Loans have a 2.5% origination fee.
• Repayment begins 60 days after the final disbursement of the loan is received, and the repayment term is up to ten 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/semester for undergraduates, when completing the PLUS Loan Application. Your parent can also contact Direct Loan Servicing (800-557-7394) to set up this payment option AFTER the funds have been disbursed. There is no penalty for pre-payment.
• 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 MPN for more than one student.
• Two documents must be completed before your parent's PLUS Loan can be processed--The PLUS Loan Application and the PLUS Loan Master Promissory Note (MPN), both of which can be done online.  Your parent will use his/her FAFSA PIN to sign into the website and complete these loan documents.  We will receive the information electronically.

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 interest payments while you are enrolled. The length of repayment is generally ten years.
• Student Lending Analytics provides valuable information about choosing a private loan.