TYPES OF LOANS
Federal Direct loans are offered to undergraduate students at a low fixed interest rate. Students must be enrolled at least half time (6 units) to be eligible. Repayment begins six months after the student leaves school or drops below half-time status. Students must complete Entrance Counseling and a Master Promissory Note before they can receive their first disbursement (see section below).
The Federal Direct Loan Program offers the following types of loans:
Subsidized: for students who demonstrate financial need, as determined by the FAFSA. No interest is charged while a student is in school at least half-time, during the grace period, and during deferment periods.
Unsubsidized: not based on financial need; interest is charged during all periods, even during the time a student is in school and during grace and deferment periods. Student needs to complete the FAFSA.
PLUS: Loans for parents of dependent students. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance. Interest is charged during all periods. To apply for the Parent PLUS loan, one parent needs to log in to complete the application process. The parent also needs to complete a Master Promissory Note on the same website. Repayment begins within 60 days of the loan being fully disbursed, unless the borrower chooses to defer payments. For full details, refer to the loan application.
Click here for more information about Federal Loans
CURRENT INTEREST RATES
Subsidized/Unsubsidized Loans - 4.45% (Fixed - valid July 1, 2017 to June 30, 2018)
Parent PLUS Loan - 7% (Fixed - valid July 1, 2017 to June 30, 2018)
A loan fee (or origination fee) is an expense of borrowing a Federal Direct Loan (Sub/Unsub/PLUS). It is the percentage of the amount of each loan the borrower receives and is subtracted proportionately from each disbursement. Federal Direct Loan originated/disbursed on 10/01/2016 to 09/30/2017, the following loan fees will be applied:
Subsidized/Unsubsidized Loans – 1.069% (10/01/2016 to 09/30/2017) Current Fees
Subsidized/Unsubsidized Loans – 1.066% (10/01/2017 to 09/30/2018)
Parent PLUS Loan – 4.276% (10/01/2016 to 09/30/2017) Current Fees
Parent PLUS Loan – 4.264% (10/01/2017 to 09/30/2018)
Example: $5,500 loan for the 2017/2018 school year:
FA17 Disbursement $2,750 x 1.069% = $2,721
SP18 Disbursement $2,750 x 1.069% = $2,721
Total Received = $5,442
Dependent Students* Independent Students
Freshman (0-29 units) $5,500 ($3,500 sub) $9,500 ($3,500 sub)
Sophomore (30-59 units) $6,500 ($4,500 sub) $10,500 ($4,500 sub)
Junior (60-89 units) $7,500 ($5,500 sub) $12,500 ($5,500 sub)
Senior (90+ units) $7,500 ($5,500 sub) $12,500 ($5,500 sub)
Total $31,000 ($23,000 sub) $57,500 ($23,000 sub)
Amount in parenthesis represents the maximum amount of subsidized loan a student is eligible to receive. Amounts can vary, depending on financial need as determined by the FAFSA. The remaining amount is offered in the form of a Direct Unsubsidized Loan.
*Dependent students whose parents cannot get approved for the Direct Parent PLUS will receive an additional $4,000/yr Unsubsidized loan Freshman/Sophomore or $5,000 for Junior/Seniors . These additional amounts cannot exceed the independent aggregate limit
FIRST TIME BORROWERS
All first time borrowers are required to complete a Master Promissory Note and Entrance Counseling. Loans will not be processed if documents are missing.
Master Promissory Note: legal agreement between the borrow and lender to repay the loans
Entrance Counseling: interactive session that shows your rights and responsibilities as a loan borrower
LOAN EXIT PROCESS
Exit Counseling is required when you graduate, leave school, or drop below half-time enrollment. Exit counseling reviews the borrower's rights and responsibilities, important information needed to repay your federal student loan(s).
DIRECT PARENT PLUS
The Parent PLUS loan is available to parents of dependent students (as determined by the FAFSA). It can be used to help pay for any remaining educational expenses.
Interest Rate - 7% (07/01/2017 to 06/30/2018)
Loan Fees - 4.276% (10/01/2016 to 09/30/2017) Current Fees
Loan Fees - 4.264% (10/01/2017 to 09/30/2018)
To be eligible for the Parent PLUS loan, the borrower:
1. Must not have adverse credit history, or
2. Has an adverse credit history but has obtained an endorser who does not have and adverse credit history and completes PLUS Loan Counseling offered by the Dept. of ED, or
3. Has an adverse credit history but documents to the satisfaction of the Dept. of ED that extenuation circumstances exist and completes PLUS Loan Counseling offered by the Dept. of ED.
Click Here to complete the PLUS Application or PLUS Counseling (parent needs to log in)
Click Here for more information
**We are now accepting applications for the 17/18 School Year**