Loans

Federal loan borrowers must complete the Free Application for Federal Student Aid on an annual basis. All first-time borrowers of Federal Stafford and Federal Perkins loans must complete Entrance Counseling and a Master Promissory Note (MPN).

1. Federal Perkins Loan

a) Five percent interest rate.

b) Based on financial need.

c) Awarded on first-come, first served basis.

d) Annual loan limit of $4000.

e) Repayment begins nine months after graduation or less than half-time enrollment at the school

f) Certain jobs may qualify for deferment or cancellation benefits.

2. Federal Stafford Loans 
(see additional information)

1. Subsidized Stafford Loans are awarded based on financial need. THe federal government pays the interest on these loans while the borrower is in school at least half-time, during the grace period, and during periods of deferment.

2. Unsubsidized Stafford Loans are not awarded based on financial need. Interest accures from the date of disbursement until the final payment. The borrower can choose to pay the interest monthly or quarterly while in school and during the grace period, or can have the interest capitialized and added to the principal amount of the loan upon entering repayment.
   

a) Fixed interest rate of 5.6 percent for subsidized loans first disbursed after July 1, 2009.

Fixed interest rate of 6.8 percent for unsubsidized loans. 

b) Need and non-need based components.

c) Maximum loan amounts:

1. $5,500 Freshman year(up to $3,500 subsidized if qualify)
2. $6,500 Sophomore year(up to $4,500 subsidized if qualify)
3. $5,500 Junior year
4. $5,500 Senior year

d) Repayment begins six months after graduation or less than half-time enrollment at the school.

3. Federal Parent Loan for Undergraduate Students (PLUS)

a) Fixed interest rate of 8.5 percent.

b) Loan amounts up to the cost of attendance minus financial aid.

c) Credit worthiness loan for parents. 

d) Repayment begins 60 days after the last disbursement make on the loan, unless the parent contracts for deferment with the lender.