Loans to Students
Federal Perkins Loan Program
This need-based program provides loans for students who are enrolled at least half time. A total of $20,000 may be borrowed by an undergraduate, but not more than $4,000 per year. Repayment at a 5% interest rate begins nine months after the student ceases at least half-time enrollment. The available funds are very limited.
Federal Stafford Student Loans
The Federal Stafford Loan is a low-interest loan that does not have to be repaid until six months after the student graduates or drops below halftime enrollment status. For loans borrowed before July 1, 2006, the interest rate is variable, with a cap of 8.25%. For loans borrowed after July 1, 2006, the interest rate is fixed at 6.8%. With the subsidized loan, the government pays the interest while the student is in school and during the six-month grace period. With the unsubsidized loan, the government does not pay the interest while the student is in school or during the six-month grace period. The student can choose to pay the interest as it accrues or allow the interest to capitalize.
In most cases, a 1% federal origination fee and a 1% deficit reduction fee will be deducted from the loan proceeds prior to disbursement. These fees help offset the administrative costs associated with the Federal Family Education Loan Program. Some lenders will pay these fees on behalf of the student.
The Free Application for Federal Student Aid (FAFSA) must be filed in order to determine subsidized and/or unsubsidized eligibility.
Loan Limits (effective July 2008)
| Status | Amount per Year |
| Freshman | $5,500 |
| Sophomore | $6,500 |
| Junior | $7,500 |
| Senior | $7,500 |
| Graduate/Professional | $8,500 |
The combination of the subsidized and the unsubsidized Federal Stafford Loans can only exceed the limits shown above for the dependent student when the parent applies for a Parent Loan and is denied. In that event, the student can borrow an additional unsubsidized loan in the amount of $4,000 per year for freshmen and sophomores; $5,000 per year for juniors and seniors. The independent student is not required to go through the parent denial. The graduate student can borrow an additional $12,000 per year as long as it does not exceed the total cost of attendance.
Lenders
Selecting a Lender
Selecting a lender is an important decision because you will be dealing with this lender, and its servicer, for the life of your loan. You should select a lender in whom you have confidence or from whom you have borrowed student loans previously. All lenders must follow the rules of the Federal Family Education Loan Program. The lenders listed here are committed to providing reliable quality service to their borrowers from origination through repayment. You may choose from this list, which represents lenders our current students use. You also may select a lender of your own choosing—please provide complete information (name, address, phone, lender code). If you have prior outstanding loans, you should continue to use the same lender for any future loans.
Once you have selected a lender you may complete the Stafford Master Promissory Note (MPN) and forward it to the Centenary Financial Aid Office. The Master Promissory Note (MPN) is designed to be used as a multi-year note. Under the MPN process, you will sign a promissory note once, at the time you first borrow. You may obtain additional loans, based on that same note, for subsequent years. Notification and confirmation via official school award letters will take the place of the requirement that you sign a note for future years.