Loans

Attention returning students: Effective July 1, 2010 we will NO longer be participating in the FFEL loan program because of recent legislation. From July 1, 2010 on we will be participating in the Federal Direct Loan program, which means you will borrow directly from the U.S. Department of Education. If you want to consolidate your loans after you graduate go to www.loanconsolidation.ed.gov
 
Types of Loans:
Subsidized: These loans are need based on the results from your Free Application for Federal Student Aid. The government pays the interest as long as you remain enrolled at least half-time in a degree seeking program. The interest rate for a subsidized loan for the 2010-2011 year is 4.5%.
Unsubsidized: These loans are not need based. You are responsible for paying the interest while you are in school. You can either pay the interest quarterly or have it accrue & added to your principal balance. The interest rate for an unsubsidized loan for the 2010-2011 year is 6.8%.
 
Loan Limits:
Freshman(0-32 credit hours): May borrow up to $5500 for the year, but only $3500 may be subsidized
Sophomore (33+ credit hours): May borrow up to $6500 for the year, but only $4500 may be subsidized
 
Loan Fees:
Federal Direct Loans consist of a 1% origination fee. However, there is a .5% interest rebate so the net fee deduction is .5%. The interest rebate is given up front assuming you will make 12 consecutive on-time payments once you enter repayment. If you fail to meet this requirement, the .5% will be added back to your loan balance.
 
PLUS Loan Information:
Once a student has exhausted their eligibility for loans, parents do have the option to take out a Federal Direct PLUS Loan to help cover the cost of their student's education. The PLUS loan application can be found at www.studentloans.gov.