Student Loan Options
Many students and their parents have found Federal Stafford (student loan), Federal PLUS (parent loan), and alternative student loans (also known as private student loans) to be attractive alternatives to depleting their savings, using current income or borrowing against their home equity when grants and scholarships do not cover all costs. If you have already graduated, you may consider combining multiple payments into one with a consolidation loan.
Alternatively, if you are studying to become, or are currently working as, a primary care health professional, competitive loan repayment and scholarship programs are available through the National Health Service Corps.
The Federal Undergraduate Stafford Loan is a simple interest, government guaranteed, no collateral loan. The interest rate is a fixed rate of 6.8%. Students may borrow while in school and begin repayment six months after leaving school or graduating.
Depending on your level of financial need, you may be eligible to borrow a “Subsidized” or an “Unsubsidized” Stafford Loan, and in some cases, both. With Subsidized Stafford Loans, the government pays the interest that accrues on the loan while you are enrolled, during your six-month grace period, and during deferment. Your school of attendance will determine your eligibility for these loan types.
Dependent students may borrow up to the following amounts:
Freshman $2,625.00
Sophomore $3,500.00
Junior $5,500.00
Senior $5,500.00
Independent students may borrow up to the following amounts with an alternative student loan:
Freshman $6,625.00
Sophomore $7,500.00
Junior $10,500.00
Senior $10,500.00
The Federal Graduate Stafford Loan is the same as the undergraduate loan, except that graduate students may borrow up to:
Graduate $18,500.00
Medical* $38,500.00
The Federal PLUS (Parent Loan for Undergraduate Students) is a simple interest, government guaranteed, no collateral loan. The fixed interest rate is 8.5%. Parents may be eligible to borrow up to the total cost of education less all financial aid received. This total cost can include tuition and fees, room and meals, books and supplies, transportation, and more. Parents are eligible for the PLUS if they meet the minimum government credit requirements. Parents begin repayment 30 days after the final disbursement for the academic year. The PLUS is based on a ten-year repayment plan with no prepayment penalties. The following are examples of monthly payments based on the total amount borrowed.
$5,000.00 $61.99
$10,000.00 $123.99
$20,000.00 $247.97
Alternative Student Loans can fill the gap between what you receive from all financial aid sources and what you really need to cover the cost of your education.
The Federal Consolidation Loan is a fixed rate, Federal government-guaranteed, no collateral loan. The interest rate is the weighted average of your loans being consolidated rounded up to the nearest 1/8th percent. It is ideal for borrowers wanting to make their student loan payments easier and more affordable. Under the provisions of the Higher Education Act, borrowers may be eligible to lock in one of the lowest rates in the history of the Federal Consolidation Loan Program.