Federal Perkins Loans
Students who have exceptional financial need are eligible to borrow under the provisions of the Federal Perkins Loan program. Repayment of this combination of federal and institutional monies and interest begins after a nine-month grace period starting after graduation or withdrawal from the College. Up to 10 years may be allowed for repayment of the loan. Additional information will be made available to all Perkins Loan recipients when the loan is awarded. A limited amount of funding is available through the program each year.
Subsidized Federal Stafford Student Loan Program
Stafford student loans are federally guaranteed loans available to qualified students. There are two types of Federal Stafford loans: Subsidized and Unsubsidized. Subsidized loans are need-based and offer the feature of repayment being deferred, while the Unsubsidized loan is non need-based and requires interest to begin being repaid or capitalized immediately. Annual loan limits for each program are as follows:
Dependent and Independent Students
|Base Amt||Unsubsidized||additional Unsubsidized for Independent Students or those denied PLUS (parent loan)|
Any combination of Subsidized and Unsubsidized loans cannot exceed the applicable students' Unsubsidized loan limits. It should also be noted that the banks and guaranty agencies may take up to 2 percent out of the Subsidized loan and Unsubsidized loan in the form of prepaid origination and default fees. The actual amount of the loan is based on the student's demonstrated financial need and the other components of the financial aid package. These loans are available through commercial banks, but students should contact the Office of Financial Aid regarding eligibility requirements and the application process. Repayment of the Subsidized loan begins six months after the borrower graduates or ceases to be at least a half-time student. The interest rate is currently 5.4 percent for Subsidized loans and 6.8 percent for Unsubsidized loans.
Federal Plus Loan Program
Federal PLUS Loan Program: PLUS (Parental Loan for Undergraduate Students) loans are available to parents of dependent undergraduate students. PLUS Loans may not exceed the student's cost of attendance less the financial aid assistance he or she will receive during the period of enrollment. It should also be noted that banks and guaranty agencies may take up to 4 percent out of these loans in the form of prepaid origination and default fees. The amount of the loan is contingent upon other factors of the financial aid package. These loans are also available at the same places as Federal Stafford Loans, but students should contact the Office of Financial Aid regarding eligibility requirements and the application process. The interest rate currently stands at 8.5 percent.
A new FAFSA must be filed each year.