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FEDERAL STAFFORD LOAN
Annual Amount: Beginning July 1, 2008, the new annual maximums are:
- up to $5,500 for Freshman year (0-27 credits)
- up to $6,500 for Sophomore year (28-59 credits)
- up to $7,500 per undergraduate year after Sophomore year (60+ credits)
Maximum total debt is $31,000 for undergraduate dependent students. Independent students can borrow an additional Unsubsidized Stafford Loan amount up to $4,000 for Freshman and Sophomore years, and $5,000 after that. Maximum total debt is $57,500 for undergraduate independent students. Students will go into repayment six months after they graduate or fall below six credits and have a 10 year repayment period.
Beginning July 1, 2009, the Undergraduate Subsidized Stafford interest rate will be fixed at 5.6% for all loan funds disbursed after 7/1/09.
- SUBSIDIZED STAFFORD LOAN - Awarded on the basis of financial need as determined by the Free Application for Federal Student Aid (FAFSA). Awarded by the Financial Aid Office to students enrolled at least half-time. Funds are available through lending institutions. No interest is charged while the student is in school, but interest will start accruing once the student goes into repayment or during periods of deferment.
- UNSUBSIDIZED STAFFORD LOAN - Awarded to students who file the Free Application for Federal Student Aid (FAFSA). It is not necessary to demonstrate financial need to receive this loan. Awarded by the Financial Aid Office to students enrolled at least half-time. Funds are available through lending institutions. Unlike the Subsidized Stafford Loan, the Unsubsidized Stafford Loan accrues interest while student is in school.
Click here to apply for the Federal Stafford Loan.
FEDERAL PERKINS LOAN
Annual Amount: Up to $2,000 annual limit, $20,000 total for undergraduate study. Repayment and interest (5% per year) begin nine months after the student finishes school or drops below half-time enrollment and there is a 10 year repayment period. Funds are limited.
Qualifications: Students who file the Free Application for Federal Student Aid (FAFSA) and demonstrate exceptional need. Awarded by the Financial Aid Office to students enrolled at least half-time. If you were eligible for a Federal Perkins loan, the Financial Aid Office would have notified you by including it on your Final Financial Aid Award. You will also be required to complete entrance counseling. The Perkins Loan Coordinator will notify you at a later date how to complete this.
FEDERAL PARENT LOAN FOR UNDERGRADUATE STUDENTS (PLUS)
Annual Available Amount: Cost of attendance minus other aid. Repayment and interest beginning 60 days following the second date of disbursement. This is a 10 year repayment period. Beginning July 1, 2006, the PLUS interest rate will be fixed at 8.5% for all loan funds disbursed after 7/1/06.
Qualifications: Parents of students who file the Free Application for Federal Student Aid (FAFSA) and want to borrow to help pay for their children's education. Requires separate application. Funds are available through lending institutions.
Click here to apply for the Federal PLUS Loan.
PLUS LOAN DENIAL:
If a parent is denied for a PLUS loan, the student will be eligible for additional Stafford Loan funds. For your student to obtain these funds, you must submit a copy of a PLUS denial letter to the Financial Aid Office.
FEDERAL PLUS LOAN FOR GRADUATE STUDENTS
Graduate students enrolled in a degree-seeking graduate program can now apply for a Federal PLUS loan. Annual Available Amount: Cost of attendance minus other aid. Repayment begins 60 days following the second date of disbursement. There is a 10 year repayment period. Beginning July 1, 2006, the PLUS interest rate will be fixed at 8.5% for all loans disbursed after 7/1/06.
Qualifications: Graduate students who file the Free Application for Federal Student Aid (FAFSA) and want to borrow to help pay for their education. Requires separate application.
Click here to apply for the Federal PLUS Loan for Graduate Students.
ALTERNATIVE LOANS
Alternative loans are private loans through a lending institution and are not part of the federal government loan programs. Alternative loans are more expensive than federal government guaranteed loans and should only be used when all other options have been exhausted.
The maximum amount a student is able to borrow each year is determined by the individual lender, however, the general amount is the cost of attendance minus other aid awarded. The terms of repayment and interest rates are also determined by the individual lender and can vary between lenders. A majority of interest rates are not fixed and change quarterly.
You can click the button below to view a comparison chart of the Federal PLUS loan and private alternative loan to help decide which option is best for you and your family.
![[photo] loan comparison](images/buttonloan.gif)
To help you understand more about what alternative loans are and how they work, please view the 2008 Guide to Alternative Loans.
Click here to learn how to apply for Alternative/Private Loans.
STAFFORD MASTER PROMISSORY NOTE (MPN)
You can now submit your Master Promissory Note (MPN) on-line at FASTLoans.
You only need to complete this if you are a first-time borrower, have not completed a Master Promissory Note after July 1, 2000, or wish to change your lender.
Entrance Counseling
If you are new to Carroll and borrowing Stafford loans, you need to complete entrance counseling to disburse you loan funds. You have can click here to complete entrance counseling on-line. When you have finished, print out a copy for your records. The following day, Carroll will receive notice electronically that you have completed your entrance counseling.
Exit Counseling
Federal regulations require you to complete exit counseling when you graduate or drop below six credits at an institution. Exit counseling shows you how to manage repaying your student loans after college. You have two options to complete this:
On-line Option - Click here to complete exit counseling on-line. When you have finished, print out a copy for your records. The following day, Carroll will receive notice electronically that you have completed your exit counseling.
Paper Option - The Financial Aid Office would have sent you an exit counseling packet. Included in this packet is an exit interview data form. By completing this form and returning it to Carroll, you meet your exit counseling requirement. You may also request this form from the Financial Aid Office.
Great Lakes Higher Education
To view your loan account on-line, make a payment, receive information on deferments, repayment options and much more regarding student loans, visit Great Lakes Higher Education or call them at 1-800-236-4300.
National Student Loan Database Services (NSLDS)
You can use this web site www.nslds.ed.gov to make inquires about your Title IV loans and/or Pell grants. The site displays information on loan and/or grant amounts, outstanding balances, loan statuses and disbursements. The Glossary of Terms contains information on terms relating to loans and grants. |
