Federal Direct Stafford Loans
The Federal Direct Stafford Loan Program enables students who are enrolled at least half-time (two units) to borrow directly from the federal government rather than from a bank. Loans made through this program include the Direct Subsidized Stafford and the Direct Unsubsidized Stafford Loans.
Repayment begins six months after the student is no longer enrolled at least half-time at an accredited institution. The repayment term ranges from 10 to 25 years depending on the amount borrowed and the repayment plan chosen. The minimum monthly payment is $50. If the student borrows a smaller amount, she will have shorter payment terms. If the student borrows a larger amount, she may wish to consolidate her loan to extend the repayment term. The student should review her options at www.ed.gov/DirectLoan. The interest rate for Federal Direct Stafford Loans first disbursed on or after July 1, 2013 is 6.8%.
A loan origination fee of 1.051% will be deducted from the gross amount on all Federal Direct Stafford Loans first disbursed on or after July 1, 2013.
Additional information on the Federal Direct Stafford Loan Program is available from Student Financial Services or the Student Financial Services Handbook. Perkins Loan
The Perkins Loan Program is administered by the College from allocated federal funds. Eligibility for a Perkins Loan is determined through a federal needs test. The 5% interest rate and repayment of the loan begin nine months after graduation, withdrawal from the College or dropping below half-time status. No interest accrues on the loan until repayment begins. Cancellation and deferment of loan payments are possible under certain circumstances, which are detailed in the loan promissory note. Awards range from $500 to $4,000 per year and are based on financial eligibility and the availability of funds.
Federal Direct PLUS Loan
The Federal Direct PLUS Loan is a federally subsidized loan program designed to help parents of dependent undergraduates pay for educational expenses. Repayment begins on the date of the last disbursement. Parent PLUS loan borrowers whose funds were first disbursed on or after July 1, 2013 have the option of delaying their repayment on the PLUS loan either 60 days after the loan is fully disbursed or six months after the dependent student is not enrolled at least half-time.
During this time, interest may be paid by the parent or capitalized.
Interest rate on the PLUS Loans borrowed on or after July 1, 2006 is fixed at 7.9%. A loan origination fee of 4.204% will be deducted from the gross amount on all Federal Direct PLUS Loans first disbursed on or after July 1, 2013 and before July 1, 2014. A PLUS borrower may pay the interest as it accrues during a deferment, or allow it to accrue and be capitalized at the end of the deferment period.
The International Loan Program is administered by the College from institutional funds, and must be awarded as part of a student’s aid offer. Recipients must remain enrolled at the College at least half time to retain eligibility. The 5% interest rate and repayment of the loan begin 12 months after graduation, withdrawal from the College or dropping below half-time status. No interest accrues on the loan until repayment begins. The maximum repayment period is 10 years. Students who file for bankruptcy may still be required to pay back the loan. Students may not borrow more than the amount offered as part of a financial aid award from year to year.