LOANS - The Simple Facts

Federal Direct Student Loans

• Student eligibility listed on Award Notification
  • Student must be enrolled at least half time (six or more credit hours) to receive loan funds
  • Interest Rate
    • Subsidized – 6.8% fixed rate
    • Unsubsidized – 6.8% fixed rate
  • Fees - 1.051% origination fee
    • Calculate net amount received by the school
      Loan amount X .98949 = net amount received by the school
  • Payments begin six months after the student leaves school, graduates or drops below half-time status
    
    
• Student is the borrower
  • Complete online loan Entrance Counseling Session
  • eSign a Master Promissory Note (MPN)
    

Federal Parent PLUS Loans

• Parent eligibility listed on Award Notification
  • May borrow up to the cost of attendance minus all financial aid options
  • Interest Rate
    • 7.9% fixed rate
  • Fees - 4.204% origination fee
    • Calculate net amount received by the school
      Loan amount X .95796 = net amount received by the school
  • Payment begins 60 days after second (or last) disbursement for academic year
    • Deferment and/or forbearance options available
      • Must apply yearly
        
        
• Parent is the borrower
  • Parent Loan for dependent Undergraduate Student
    • Biological, adoptive or step-parent
  • Yearly application process
    • Complete Pre-Approval
      • Credit based loan, may apply with an Endorser
  • eSign Master Promissory Note (MPN)
    
    
• Parent PLUS Denial
  • Allows additional unsubsidized eligibility for undergraduate student

Private Educational Loans

• Loan in student’s name with credit worthy cosigner
• Variable and fixed interest rates
• Lender specific benefits