Loans
usually make up a part of a student's financial aid package. Federal
government programs provide many of these loans. Federal student
loans tend to have favorable interest rates and repayment schedules.
Keep in mind that a loan is a financial obligation and must be repaid.
Following is a list of available loans.
Federal Stafford Loan
The University determines your need for this loan under current
federal government guidelines. Annual loan amounts vary according
to the number of credits earned toward a degree, as outlined below:
Undergraduate Students
| 0-23
credits |
$2,625 |
| 24-55
credits |
$3,500 |
| 56-89
credits |
$5,500 |
| 90+
credits |
$5,500 |
| aggregate
limit |
$23,000 |
Eligible
postbaccalaureate nondegree students are considered fifth-year undergraduates
for the Federal Stafford Loan program. The interest rate on Federal
Stafford Loans may change during each year of repayment but will
never exceed 8.25 percent. Interest on this loan is paid by the
federal government while a student is in school and for a six month
grace period after graduation. An origination fee and a loan guarantee
fee may be deducted before the loan is disbursed. Repayment may
be deferred as long as a student is registered for 6 or more credits.
Repayment typically begins six months after graduation. The maximum
repayment period is ten years.
Federal Unsubsidized Stafford Loan
In addition to the Stafford amounts listed above, students may be
eligible for additional borrowing through a Federal Unsubsidized
Stafford Loan. Unsubsidized Stafford eligibility is limited to independent
students (as determined by the FAFSA) and dependent students whose
parents have been denied access to the Federal PLUS program. The
basic difference between Subsidized and Unsubsidized Stafford Loans
is that the interest accrues on Unsubsidized Staffords while a student
is enrolled. Annual loan amounts are outlined below:
| 0-23
credits |
$4,000 |
| 24-55
credits |
$4,000 |
| 56-90
credits |
$5,000 |
| 91+
credits |
$5,000 |
Federal
Parent Loans for Undergraduate Students (PLUS)
Parents
of dependent students may apply for a PLUS for amounts up to the
cost of education minus any financial aid the student may be receiving.
All lenders will perform a credit check wherein credit readiness
as well as worthiness will be determined. The PLUS is a federally
insured loan program for which there is no income restriction. The
interest rate is variable, adjusted annually, not to exceed 9.0
percent. Repayment begins within sixty days after disbursement of
the loan check.
Federal Perkins Loans
Federal Perkins Loans are administered by the University from funds
allocated by the federal government. These loans are awarded based
on exceptional need and the maintenance of satisfactory progress.
Loan funding is limited and every effort is made to allocate these
loans to as many needy students as possible. The interest rate is
5 percent. Perkins Loans are limited to $4,000 per year of undergraduate
study at General Studies. The federal aggregate limit is $20,000
for undergraduates, with a limit of $8,000 for those who have not
completed two years of undergraduate work.
Other
Loans
Various types of loans are available to General Studies students.
In addition to the Federal Loan Programs, there are loans available
from non-governmental, private lenders. Further information and
applications can be obtained from Student Financial Planning in
208 Kent.
