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 extremely limited.
Federal Direct Student Loans
The Federal Direct 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. 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 school uses the FAFSA to determine if the student is eligible for any subsidized amount. Graduate students are not eligible for subsidized amounts. The student can choose to pay the interest as it accrues or allow the interest to capitalize. A 1% origination fee is deducted from each disbursement.
The Free Application for Federal Student Aid (FAFSA) must be filed in order to determine subsidized and/or unsubsidized eligibility.
|Status||Amount per Year|
The combination of the subsidized and the unsubsidized Federal Direct 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.
Once awarded, the student will need to log into Studentloans.gov to complete entrance counseling and to sign the master promissory note.