Loans
Loans are another source of financial aid and must be repaid. File the FAFSA application to be considered for the loans listed below. A commitment to borrowing for education is an important decision. Please consider carefully before borrowing on any loan program.
Federal Loans
Stafford Student Loan Program
This program offers deferred, low-interest loans to students, secured by their own signature. The program includes both subsidized and unsubsidized loans. Subsidized loans are based on financial need. If you qualify for a subsidized loan, the government will pay the interest you accrue on the loan while you're in school, and for the six months after you leave school. If you receive an unsubsidized loan, you are responsible for all interest accrued from the day the check is disbursed. Apply for a Federal Stafford Loan by completing and submitting the FAFSA application at www.fafsa.ed.gov.
To qualify, you must be a U.S. citizen or permanent resident. You must be enrolled on at least a half-time basis and demonstrate eligibility according to federal guidelines. A credit check is not required. Effective 7/1/2008, maximum loan amounts are $5,500 per year for dependent freshmen and $6,500 per year for dependent sophomores. Subsidized loans may not exceed need; unsubsidized loans may not exceed cost up to stated maximums. Interest is variable and assigned when loan is disbursed, but will not exceed 9 percent. Repayment begins six months after leaving school and you may take up to 10 years to repay. Payments are $50 -100 per month per loan.
Federal Parent Loans for Undergraduate Students (PLUS) Program
This program offers additional federal loans to parents of dependent undergraduate students, based on credit approval. The maximum amount is for the cost of attendance minus financial aid. Interest on the loan amount begins to accrue the day a check is disbursed at a fixed rate of 8.5%. Effective 7/1/2008, repayment begins six months after student leaves school and you may take up to 10 years to repay. Apply for these loans at www.hesc.org and click on Students, Families & Counselors.
Private/Alternative Loans
Private education loans are also available from a variety of sources to provide supplemental funding when other financial aid does not cover costs. These loans are not sponsored by the federal government, but offered by banks or other financial institutions. Although you are not required to file an Application for Federal Student Aid (FAFSA) in order to apply for this or any other private education loan, we recommend you do so, to first determine whether you are eligible for the benefits of a federal loan. More information is available through www.finaid.org/loans/privatestudentloans.phtml.
Advances and Short-Term Loans
If your financial aid funding has not been received, or you experience a true emergency due to fire or natural disaster, medical emergency costs, or other unforeseen circumstances, two types of short-term loans are available at no interest. For additional information on short-term loans, or to apply contact the Office of the Bursar.
Office of the Bursar.
