Loans

Federal Perkins Loan
The Office of Financial Aid awards these loans from federal funds based on the financial need of the student and funding availability. Loan amounts awarded will not exceed $2,000 per academic year. No interest is charged to the student who is enrolled at least half-time (six credits per semester). When a student ceases at least half-time enrollment, a nine-month grace period is given before the interest (5%) begins to accrue and payment is due. Borrowers have up to 10 years to repay this loan with a minimum monthly repayment of $40.

Direct Loans
Students do not borrow from banks. The federal government raises the loan funds through its treasury bill auctions and the federal government is the recipient of loan repayments. Loan types available through this program are Direct Subsidized Loans, Direct Unsubsidized Loans and Direct PLUS Loans. Students wishing to apply for a Direct Subsidized Loan and/or a Direct Unsubsidized Loan must complete an entrance interview and master promissory note by logging onto StudentLoans.gov. Loan proceeds will not be disbursed unless all of the above procedures are completed.

Parents wishing to apply for a Direct PLUS Loan must have a Free Application for Federal Student Aid completed for the student on whose behalf the loan is being borrowed. Parents must also have a credit check performed and a master promissory note must be completed by logging onto StudentLoans.gov. Loan proceeds will not be disbursed unless all of the above procedures are completed.

Direct Subsidized Loan
The Federal Direct Subsidized Loan program assists students with meeting educational costs by providing low-interest, long-term loans. If the student demonstrates financial need for the loan, the interest is subsidized by the government while the student is enrolled at least half-time (six credits per semester) and until a six-month grace period has expired.
Eligibility for a loan is based on the EFC calculated by the Federal Student Aid Programs. Families must demonstrate financial need for the loan according to criteria established by the U.S. Department of Education. Students must complete the Free Application for Federal Student Aid (FAFSA) to be considered for a Federal Direct Subsidized Loan and be enrolled at least half time (six credits) to be eligible for a student loan.

The subsidized loan amount is limited to demonstrated need up to a maximum of $3,500 for a dependent first year undergraduate student (less than 30 credits earned) and $4,500 for a dependent student who has successfully completed the first year (a minimum of 30 credits) and is in the second year of undergraduate study. The interest rate on the Federal Direct Subsidized loan is fixed at 3.4% for the 2011-2012 academic year. Loan amounts are prorated when a program, or the remaining part of a program, is less than an academic year and when the student's enrollment status is less than full time but at least half time.
Direct Unsubsidized Loan
Dependent students who do not qualify for the full interest subsidy under the Federal Direct Subsidized Loan program may receive a Federal Direct Unsubsidized Student loan. The Federal Direct Unsubsidized Student loan differs from the Federal Direct Subsidized Student Loan in that all the interest on the loan during in-school, grace, and deferment periods must be paid by the student. The interest rate is 6.8%
The loan limits on the Federal Direct Unsubsidized Student Loan are the same as the Federal Direct Subsidized Student Loan less any amount of Federal Direct Subsidized Student Loan borrowed. Therefore, students who show need for only part of the annual Federal Direct Subsidized Student Loan limit may borrow the remainder through the Federal Direct Unsubsidized Student Loan.

Independent students may borrow a maximum of $9,500 (up to $3,500 subsidized plus $6,000 unsubsidized) as first-year undergraduates and $10,500 (up to $4,500 subsidized plus $6,000 unsubsidized) for independent students who successfully completed the first year (a minimum of 30 credits) and are enrolled in the second year of undergraduate study. The interest rate on the Federal Direct Unsubsidized Student Loan is 6.8%. Repayment commences six months after the month in which the student ceases to be enrolled at least half-time.

Note: No student may borrow in excess of the cost of attendance as calculated by the Office of Financial Aid.
Direct PLUS Loans (Parent Loan for Undergraduate Students)
This loan program is for the parents of undergraduate students to help them meet the cost of education. Parents may borrow up to the cost of education minus estimated financial assistance to the student. The interest rate is fixed at 7.9%. Repayment of the Federal PLUS loan begins 60 days after the last disbursement. Parents are eligible to borrow a Federal PLUS loan only if they have no adverse credit history. Parents complete a PLUS application and promissory note. Contact the Office of Financial Aid for application information. Please note: Some Federal Loan borrowers may be charged an origination fee of 4%. Each loan must be disbursed in two equal payments. The fees are deducted from the proceeds of each check.

Apply for a student loan