Student Loans
Stafford Loans
Many graduate students access Stafford Loans to help pay the cost of their graduate 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.
- If you are given a need-based 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 current interest rate on Stafford Loans for graduate students is a fixed 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 (four credit hours/semester), and lasts at least 10 years. There is no penalty for pre-payment.
Eligibility for Stafford Loans
In order to receive Stafford Loans, you must meet the following:
- You must have a valid FAFSA on file.
- You must be enrolled at least half time, which is four credit hours/semester for graduate students.
- You must be pursuing a degree or certificate.
- You must maintain satisfactory academic progress.
Students who are in default on a previous or current federal student loan 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 once again be eligible for federal student loans.
Loan Application Process
- File the FAFSA. If you will enrolling in the summer term, you will need to file the 10/11 FAFSA. To receive aid for the fall term, which starts in August, you need to file the 11/12 FAFSA. You will need a PIN to sign your form electronically.
- Sign your Direct Loan Master Promissory Note (MPN), which is the actual loan application.
- 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 access these documents. We will receive them 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:
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The current interest rate is a fixed 7.9%. All PLUS Loans have an origination fee of 2.5%.
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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.
Private Loans
In addition to Stafford Loans, you may pursue private loans.
Private loans are credit-based loans. Some students will need a creditworthy cosigner to be approved for this type of funding. Interest rates and repayment terms vary by lender, and are not as favorable as the Federal Stafford Loans. 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 provides valuable information about private loans.
Loan funds will post electronically to your North Park student account approximately 30 days after the term begins. You will receive an email when the funds have posted to your account. If your financial aid exceeds the charges on your account, you will receive a refund check for the credit on your account. Once again, you will receive an email if/when you have been issued a refund.