Stafford Loans are loans with a fixed-rate of 6.8% available to both undergraduate and graduate students. The idea is to provide loan options to students who could not otherwise receive a loan from a private lender due to the lack of credit history.

There are two types of Stafford Loans…

• Subsidized Stafford Loans are only open to those who demonstrate financial need. The government will pay the interest on your loan while you are in school, during grace periods, and during any deferment periods.

• Unsubsidized Stafford Loans are available to all students regardless of your financial need. With this loan you are responsible for the interest that stacks up during your time in college. You can either pay the interest while you are in college or wait until you graduate (or dropout).

Eligibility

• You must have submitted a FAFSA.

• For subsidized Stafford loans, you must have financial need.

• You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.

• You must be enrolled or plan to enroll at least half time.

• You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program.

• You must not be in default on any education loan or owe a refund on an education grant.

Loan Amounts:

Dependent Undergrads

Year Amount (up to)

Freshman $2,625

Sophomore $3500

Junior & Senior $5,500

Independent Undergrads

Year Amount (up to)

Freshman $6,625 (only $2,625 Subsidized)

Sophomore $7,500 (only $3,500 Subsidized)

Junior & Senior $10,500 (only $5,500 Subsidized)

Graduate students may borrow annually up to $18,500 (only $8,500 Subsidized).

For repayment you will receive a 6-month grace period before the first payment of your Federal Stafford Loan must be made. Your grace period begins the day after you cease to be enrolled at least half-time, withdraw or graduate from an eligible school.

Perkins Loans are long-term, low interest (5%), subsidized loans for undergraduate and graduate students. They are intended to provide extra assistance for students with “extreme financial need”. They are made with combined funds from the government and your school.

Eligibility

• You must have submitted a FAFSA.

• You must demonstrate extreme financial need.

• You must be a U.S. citizen or national, a U.S. permanent resident, or eligible non-citizen.

• You must be enrolled or plan to enroll at least half time.

• You must be accepted for enrollment or attend a school that participates in the Federal Family Education Loan Program.

• You must not be in default on any education loan or owe a refund on an education grant.

Loan Amounts

• Undergrads may receive $4,000 per year, totaling not more than $20,000.

• Graduate students may receive $6,000 per year, for a cumulative (undergrad plus grad school) maximum of $40,000.

Schools participating in the Expanded Lending Option (ELO) may offer higher loan limits for Perkins Loans.

For repayment you will receive a 9-month grace period before the first payment of your Federal Stafford Loan must be made. Your grace period begins the day after you cease to be enrolled at least half-time, withdraw or graduate from an eligible school.

PLUS Loans are low variable interest rate loans made available to parents of dependent undergraduate students. They cover up to the total cost of undergraduate education not already covered by financial aid for students enrolled at least half time. For example if a student’s tuition is $15,000 a year, but financial aid only covers $10,000 parents can apply for a PLUS loan to cover the remaining $5,000.

Eligibility

• Parents of dependent undergraduate students. Usually they must pass a credit check, but if they don’t, they can either prove extenuating circumstances or get a friend or relative to endorse the loan instead.

• Graduate and professional students who still need money for education.

Loan Amounts

• As much as needed to cover education costs not already covered by other financial aid.

Repayment starts within 60 days after the loan is fully disbursed. There is no grace period for these loans. Parents, not students, are responsible for repayment.