LOANS
Three types of loans are available to qualified students: Federal Perkins, Subsidized and Unsubsidized Stafford, and Federal Loan Parent Program (PLUS) loans.
Federal Perkins Loans: are available to new or currently enrolled students based upon the recipient’s financial need. No interest accrues while the student is in school or during the grace period. The interest rate is 5.00%. Repayment on the Perkins Loan begins nine months after the student leaves school or drops below six credit hours.
Federal Stafford Loans: are low-interest loans made to students who are enrolled in school at least six
credit hours. Currently, the interest rate is 4.5% for loans disbursed after July 1, 2010. Repayment begins six
months after you graduate, leave college, or are no longer enrolled in at least six credit hours.
There are two types of Stafford Loan: subsidized and unsubsidized, both loans must be paid back by the student.
- A Subsidized Federal Stafford Loan is based on financial aid eligibility (determined by the FAFSA). The
government pays the interest while the student is in school.
- An Unsubsidized Federal Stafford Loan is not need-based, which means a student at any income level can receive the loan. The student is responsible for the interest on the loan while in school, during the grace period, and any authorized deferment periods. The student may also choose to postpone payment of interest while in school and during the grace period by having the interest accrue. Any unpaid interest will be capitalized (added to the principal) at repayment.
The Federal Loan Parent Program (PLUS): provides a low interest loan for parents of dependent students for costs related to their education. The interest rate is currently 7.9 percent.
Low interest loans are available to new or currently enrolled students based on financial need.