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Federal Student LoansA loan is a form of financial aid that must be repaid, with interest (although the federal government will pay the interest on subsidized loans while you are in school). The Federal education loan programs offer lower interest rates and more flexible repayment plans than most consumer loans, making them an attractive way to finance your education. Education loans come in two major categories: student loans and parent loans. After reviewing the different loan options, view the application process and obtain more specific information on student loans. Stafford LoansAll Stafford Loans are either subsidized (the government pays the interest while you're in school) or unsubsidized (you pay all the interest, although principal payments are deferred until after graduation). To receive a subsidized Stafford Loan, you must be able to demonstrate financial need. Stafford Loans allow dependent undergraduates to borrow up to $5,500 during their first academic year, and up to $6,500 during their second academic year. Independent students may request up to an additional $4,000 each year under the unsubsidized loan program. Students may combine subsidized loans with unsubsidized loans to borrow the maximum amount permitted each year. Beginning with the 2008-2009 award year Subsidized Stafford Loans will carry a 6.0% fixed interest rate and Unsubsidized Stafford Loans will have a fixed rate of 6.8%. All lenders offer the same rate for the Stafford Loan, although some lenders give discounts for on-time and electronic payment. Repayment begins six months after graduation or once you drop below half-time attendance (less than 6 credit hours) in school. PLUS Loans (for Parents)The Federal Parent Loan for Undergraduate Students (PLUS) lets parents borrow money to cover any costs not already covered by their dependant student's financial aid package. PLUS loans will carry a 8.25% fixed interest rate. Repayment begins 60 days after the funds are disbursed for the year, and the repayment term is up to 10 years. The parents, not the student, are responsible for the repayment of PLUS loans. If the student agrees to make payments on the PLUS loan, but fails to make the payments, the parents will be held responsible Student Loan Lender DisclosureThere are literally thousands of lenders who participate in the Federal Family Educational Loan Program (FFELP). All of these lenders offer students and/or their parents the ability to borrow funds under the Federal Stafford and/or Federal PLUS loan programs. Part of our mission as a College Financial Aid Office is to be a resource for students and there families and assist them when making college financing decisions. We have in the past and will continue to recommend a list of participating lenders based upon the level of customer service they offer to our students, competitive rates and benefits, and the demonstrated capability of delivering loan proceeds in a timely manner. Although we provide a list of lenders for students to consider, students do have the right to select any participating lender and they will not be penalized in any way for exercising such an option. Key points concerning the Recommended Lender List Process
Contact Information:Office of Student Financial Aid & Scholarships |
