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Financial Aid: Student Loans
 Grants
and Scholarships
Work
Study Programs
Loan
Programs
Programs
for Parents
Loan For College - Educational loans for
college costs may be made to you and/or your parents.
This aid must be repaid, usually with interest.
Loans are sponsored by the federal government,
banks and lending institutions, and many private
colleges.
Federal Perkins loans
- Undergraduate students may borrow up to $4,000 per year for a total of $20,000 for undergraduate study. Graduate/ professional students may borrow up to $6,000 per year. The maximum total for all years of study is $40,000. The federal government pays the fixed 5% interest until you begin repayment which begins nine months after you are no longer enrolled at least half time. You will have up to ten years to repay.
- Eligibility is determined by exceptional financial need and the availability of funds at each college. Funds for this program are limited.
- To apply, file the Free Application for Federal Student Aid (FAFSA).
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Federal Stafford loans - subsidized and unsubsidized
Stafford loans are federally-guaranteed, low-interest loans.
New guidelines for both Subsidized and Unsubsidized Stafford loans effective July 1, 2007:
- Undergraduate students may borrow subsidized loans up to $3,500 as freshman; up to $4,500
as sophomores; and up to $5,500 as juniors and seniors for a cumulative
(subsidized) undergraduate total of $23,000. Dependent students may borrow an additional $2,000 in unsubsidized loans while independent students and dependent students whose parents were denied a PLUS loan may borrow up to $6,000 in unsubsidized loans in both freshmen and sophomore year, and $7,000 junior and senior year (effective July 1, 2008). Graduate/professional students may
borrow $20,500 per year, although only $8,500 of that can be subsidized,
to a maximum $65,500 combined limit for undergraduate and graduate
study. For Stafford Loans with first disbursements after July 1, 2006,
the interest rate is fixed at 6.8%. An origination fee (3%) and a
guarantee fee (1%) are deducted from the amount borrowed.
Federal Subsidized Stafford loan eligibility:
- Eligibility is based on financial need as calculated from information you provide on your Free
Application for Federal Student Aid (FAFSA). There is no income cutoff as long as you demonstrate need. This loan is called subsidized because the federal government pays the interest on the loan while you are in college. You begin repayment six months after you are no longer enrolled at least half time.
Federal Unsubsidized Stafford loan eligibility:
- Eligibility is not based on financial need. You are responsible for paying the interest charges on the loan. Interest begins to accrue immediately upon disbursement. Repayment on the principal and interest begins six months after you are no longer enrolled at least half time. However, you may request to begin payment on the interest and/or principal sooner which will lower the total amount that you repay.
To apply for Subsidized and Unsubsidized Stafford Loans:
- There are two steps to apply for a Stafford Loan:
1) File the Free Application for Federal Student Aid (FAFSA) to determine eligibility for the Subsidized Stafford Loan.
2) After you decide which college you will attend, check with the college to finalize Stafford Loan application procedures.
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Federal Direct student & parent loan program
- Direct loans are available only at certain colleges as an alternative to Federal Stafford and Federal Parent Loans (PLUS). These loans have the same borrowing amounts, qualifying requirements and interest rates as Federal Stafford loans (see above) and PLUS (see
Alternatives for parents and students). If your college participates in the Direct Loan Program, it will notify you of application procedures. To determine eligibility for all federally-guaranteed student loan programs, you must file the Free
Application for Federal Student Aid (FAFSA).
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Loan programs from private colleges and universities
- Many independent colleges and universities offer loans with varying interest rates and terms. Programs are available for parents and for students. For additional information to determine which applications are required, check the college's catalogue or contact the financial aid office. The
Free Application for Federal Student Aid
(FAFSA) may be required along with the college's own financial aid application.
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Health Professions Student Loans
- Offered at participating colleges with programs in medicine, osteopathy, podiatry, pharmacy, dentistry, optometry, and veterinary medicine. Students borrow at a low interest rate. Repayment begins 12 months after program completion, with up to 10 years to repay. Eligibility is based on financial need.
- Contact the college's financial aid office for additional information.
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