Student Loans

Student Loans student LOANS . . .

This Student Loan Chart provides details on interest rates and repayment terms.

The Federal Perkins Loan is based on financial need, and you borrow it directly from the college. Interest accrues when repayment begins.

Interest:	5% fixed interest
Fees:	None
Loan limit:	The college determines the loan amount based on available funds. The maximum loan for an undergraduate is $4,000 per year; graduate is $6,000 per year; $40,0000 total for all degrees.
Repayment:	Begins 9 months after you graduate or drop below half-time status. You have up to 10 years to repay the loan.

Federal Stafford Loan (or Direct Loan): Some colleges have you borrow from your lender (Federal Family Education Loan Program - FFELP), while others have you borrow from the federal government (Direct Loan). Your award letter from the college will supply this information.

The Stafford Loan offers two options, depending on your eligibility.

Subsidized Stafford Loan (or Direct Loan): You may qualify for this loan if you demonstrate financial need. You don't pay interest while in school, or during grace or deferment periods - the government pays it for you.

Interest: 6% fixed rate – changing to 5.6% fixed rate July 1, 2009

Fees: Up to 2% in fees

Loan limit:

Maximum combined subsidized and unsubsidized loan amounts:

Year 1 - $3,500

Year 2 - $4,500

Years 3, 4, 5 - $5,500

Graduate - $8,500

Repayment: Begins 6 months after you graduate or drop below half-time status. Maximum 10-year repayment.

Unsubsidized Loan (or Unsubsidized Direct): You pay all interest, but you can add the interest to the loan (capitalize) to avoid payments while in school.

Interest: 6.8% fixed rate

Fees: Up to 2% in fees

Loan limit:

Maximum combined subsidized and unsubsidized loan amounts:

Year 1 - $3,500

Year 2 - $4,500

Years 3, 4, 5 - $5,500

Graduate - $8,500

Dependent students may be eligible for additional unsubsidized loan funds:
Years 1-5, $2,000

Independent students may be eligible for additional unsubsidized loan funds:

Years 1-2, $6,000

Years 3, 4, 5 - $7,000

Graduate - $12,000

Repayment: Begins 6 months after you graduate or drop below half-time status. Maximum 10-year repayment.

The Federal PLUS Loan (or Direct PLUS Loan) This loan will help your parents pay your college expenses. Colleges participating in FFELP (Federal Family Education Loan Program) have parents borrow from a lender; colleges participating in the Direct Loan Program have parents borrow from the federal government.

Interest: 8.5% fixed rate – FFELP; 7.9% fixed rate – Direct Loan.

Fees: Up to 2% in fees

Loan limit: Parents may borrow up to the cost of education minus other financial aid. The parent borrower must be credit worthy.

Repayment: Repayment begins 60 days after total loan amount is applied to student's account. Contact the lender to request a deferred payment. Maximum 10-year repayment.

Interest:	8.5% fixed rate – FFELP; 7.9% fixed rate – Direct Loan.
Fees:	Up to 2% in fees
Loan limit:	Parents may borrow up to the cost of education minus other financial aid. The parent borrower must be credit worthy.
Repayment:	Repayment begins 60 days after total loan amount is applied to student's account. Contact the lender to request a deferred payment. Maximum 10-year repayment.