LOANS

Loans are borrowed funds which must be repaid. To meet the Cost of Attendance, many students and parents find that loans are an important resource for financing education expenses. There are no pre-payment penalties on these loans. There are three basic loan categories: Federal, Institutional, and Private/Alternative Loans.

FEDERAL STAFFORD LOANS

To borrow the Stafford Loan, submit the Stafford Loan Activation Form which is available online or via paper from our office. There are two types of Federal Stafford Loans – subsidized and unsubsidized:

• Subsidized Stafford Loan (EST. STAF) is “need-based”. The federal government pays the interest to the lender while you are enrolled at least half time, during the “grace period”, and authorized periods of deferment. Interest begins to accrue when you enter repayment.
• Unsubsidized Stafford Loan (EST. UNSUB) has no interest subsidy. The interest accrues from the date of disbursement. You may pay the interest while you are enrolled or defer the interest. Accrued interest will capitalize once when you enter repayment. Students are encouraged to make the interest payments while in school to help decrease the total costs of the loan.

Fees, Interest and Repayment

• The lender can charge up to a 1% origination fee. This fee, if applicable, is deducted before the loan is disbursed. Some lenders listed on the following pages will pay the 1% origination fee on your behalf
• The loan guarantor is mandated to charge the 1% federal default prevention fee in accordance with the Reconciliation Act S.1932. Some lenders or guarantors listed on the following pages will pay the 1% default fee on your behalf.
• UNDERGRADUATE STUDENTS ONLY: As of July 1, 2008, the interest rate on new Subsidized Federal Stafford Loan is a fixed 6.0%.
• GRADUATE, PROFESSIONAL and/or MEDICAL STUDENTS, the interest rate on new Subsidized Federal Stafford Loan is a fixed 6.8%.
• For ANY student who borrows an Unsubsidized Federal Stafford Loan, the interest rate is a fixed 6.8%.
• For loans disbursed prior to July 1, 2006, the interest rate continues to be variable based on the 91-day T-bill.
• Repayment begins six months from the date of graduation, withdrawal, or enrollment less than half time. There is no pre-payment penalty.

ACADEMIC YEAR BORROWING LIMITS BY CLASS STANDING
Dependent Students
Class Standing	Cumulative Credits Earned	Base Stafford Loan Eligibility (Subsidized and Unsubsidized)	Additional Unsubsidized Stafford Loan Eligibility
Freshman	0-29 credits	$3500	$2000
Sophomore	30-59 credits	$4500	$2000
Junior	60-89 credits	$5500	$2000
Senior or 2nd BA	90-180 credits	$5500	$2000
Independent Students and Dependent Students Whose Parents Are PLUS Denied
Class Standing	Cumulative Credits Earned	Base Stafford Loan Eligibility (Subsidized and Unsubsidized)	Additional Unsubsidized Stafford Loan Eligibility
Freshman	0-29 credits	$3500	$6000
Sophomore	30-59 credits	$4500	$6000
Junior	60-89 credits	$5500	$7000
Senior or 2nd BA	90-180 credits	$5500	$7000
Note: If you advance into a higher grade level between fall and spring, you may request the higher loan amount by submitting a Stafford Loan Activation Form for an increase.
Additional Categories
Teaching Cert.		$5500	$7000
Graduate	0-120 graduate credits	$8500	$12,000
Medical	1st – 4th year	$8500	$32,000

AGGREGATE LIFETIME LIMITS
Category	Maximum Stafford Loan Eligibility
Dependent Undergraduate	$31,000 (no more than $23,000 of which may be subsidized)
Independent Undergraduate	$57,500 (no more than $23,000 of which may be subsidized)
Graduate	$138,500 (no more than $65,500 of which may be subsidized)
Medical	$224,000 (no more than $65,500 of which may be subsidized)
Note: If you advance into a higher grade level between fall and spring, you may request the higher loan amount by submitting a Stafford Loan Activation Form for an increase.

FEDERAL PARENT LOAN FOR UNDERGRADUATE STUDENTS (PLUS)

This is a parent loan that is not based on need. A FAFSA is not required. These loans may substitute for the Expected Family Contribution, but may not exceed the student budget minus any other financial aid or scholarships. Repayment begins 60 days after the 2nd disbursement. The lender establishes parent borrower’s eligibility based on ability to repay and credit worthiness. The parent must meet the citizenship requirements and not be in default or owe a refund to any financial aid program. The student must also meet the standards for “Satisfactory Academic Progress”.

Effective July 1, 2006, the interest rate is fixed at 8.5%. Interest is charged from the date of the first disbursement and continues until the loan is repaid in full. A fee of up to 4% of the loan disbursement amount is charged and deducted proportionally each time a disbursement is made.

If the PLUS is denied by the lender, the student may borrow an Unsubsidized Stafford Loan. A copy of the lender’s denial notification and a Stafford LAF is required to request the additional funds.

FEDERAL GRAD PLUS

This is a loan program for graduate students and requires a FAFSA. To borrow the Federal Graduate PLUS, the graduate student should contact our office for the Federal Graduate PLUS Loan Activation Form. This loan may be borrowed only after you have borrowed the Stafford Loan maximum for the year. You are also required to pass a credit check and also meet some of the general eligibility requirements for federal financial aid, including citizenship requirements and not be in default or owe a refund to any financial aid program.

The yearly maximum on a Graduate PLUS Loan is equal to the student budget minus all other financial aid and scholarships (including fee waivers). For example, if the student budget (tuition, fees, books and supplies, room and board) is $19,600 and you, the student, had $18,500 in total aid, you could borrow up to $1100.

The interest rate on the Graduate PLUS Loan is fixed at 8.5%. Interest is charged from the date the first disbursement is made until the loan is fully repaid. A fee of up to 4% of the loan is charged and deducted proportionally each time a disbursement is made.

FEDERAL PERKINS LOAN

The Perkins Loan (PERL) is a need-based, long-term, low interest (5%) loan. There are no processing fees. Funds are limited and availability is based on repayments from prior borrowers. Interest does not accrue and there is no repayment while you remain enrolled at least half-time. Repayment begins nine months following graduation, withdrawal, or enrollment less than half-time. The standard repayment term is ten years. The Perkins Loan has certain cancellation/discharge provisions, read the U.S. Department of Education’s “The Guide to Federal Student Aid” at www.federalstudentaid.ed.gov. The Cashier’s Office will mail the appropriate paperwork for the Perkins Loan in July or if awarded after July, within two weeks of offer.

NURSING STUDENT LOAN

The Nursing Loan (NSL) is a need-based, long-term, low interest (5%) federal loan specifically for students admitted into the Orvis School of Nursing. There are no processing fees. Interest does not accrue and there is no repayment while you remain enrolled at least half-time. Repayment begins nine months following graduation, withdrawal, or enrollment less than half-time. The standard repayment term is ten years. The Cashier’s Office will mail the appropriate paperwork for the Nursing Loan in July or if awarded after July, within two weeks of offer.

INSTITUTIONAL LOANS

Garvey-Rhodes (GRLN) and Blundell Undergraduate (BLUN) are need-based loans for undergraduates funded from institutional endowments. Both offer low interest (5%), long-term loans. There are no processing fees. You must be and remain full-time during the award year. Interest does not accrue and there is no repayment while you remain enrolled at least half-time. Repayment begins six months after graduation, withdrawal, or enrollment less than half-time. Repayment is not deferred if you enroll at another college. The Cashier’s Office will mail the appropriate paperwork for the Garvey-Rhodes or Blundell Loan in July or if awarded after July, within two weeks of offer.

UNIVERSITY LOAN

This is an institutional, short-term loan designed to assist continuing students who have cash flow issues. A co-signer is required and a processing fee of 2% of the loan is collected at the time the application is submitted. Ten percent (10%) interest accrues from the date of approval. 1/2 of the balance is due in 6 months and the balance of the loan at the end of 12 months or sooner if you graduate. If financial aid is received, the loan is due and payable in full at that time. This loan, in combination with other financial aid or scholarships, may not exceed the student budget.

PRIVATE/ALTERNATIVE LOAN

A private/alternative loan (BALP) is a consumer-based, non-need-based loan. The interest rate for an alternative loan is usually considerably higher than the rate for a federal loan. You should compare the terms, interest rates and fees carefully before borrowing an alternative loan. A co-signer with a good to excellent credit score is highly recommended. No payments are required while you are enrolled half-time or more. You apply directly with the lender of their choice; we have a selection of lenders on our Web site. After you apply, the lender will contact our office electronically to request certification. This loan in combination with all financial aid and scholarships cannot exceed the student budget. We highly recommend that you consider the federal Stafford Loan first and seek the advice of your financial aid advisor before borrowing an alternative loan.