Enrollment Management | Financial Aid Services

Loans

To be eligible for federal loans, you must:

  1. be a U.S. citizen, national, or permanent resident;
  2. be enrolled at least half-time;
  3. show financial need on your FAFSA or Renewal FAFSA need analysis report;
  4. not have defaulted on or owe a refund to any previous aid program;
  5. maintain satisfactory academic progress

Loan Certification Policy

Federal Perkins Loan

The Perkins Loan is a campus-based loan awarded to undergraduate and graduate students with exceptional financial need.  Students do not need to apply for this loan as it is awarded by the school based on need.  It is a subsidized loan, with the interest being paid by the federal government during the in-school and 9-month grace periods. There are no origination or default fees, and the interest rate is 5%. There is a 10-year repayment period.

The amount of Perkins Loan you receive is determined by your school's financial aid office and is dependent upon the amount of funding available.

For additional information:  Federal Perkins Loan Program

Federal Direct Stafford Loans 

The Federal Direct Stafford Loan Program is divided into two types of loans:  Subsidized Stafford Loans and Unsubsidized Stafford Loans.

Subsidized Stafford Loans are need-based, federally subsidized, low-interest loans which have repayment deferred until after you graduate, withdraw, or enroll less than half-time. Interest is paid by the federal government while you are enrolled at least half-time and during the 6-month grace period.

The interest rate for the Federal Direct Subsidized Stafford Loan is 6.8% for graduate students.  For undergraduate students, the interest rate is 5.6% for loans disbursed between July 1, 2009 and July 1, 2010.  For disbursements between July 1, 2010 and July 1, 2011, the interest rate for undergraduate students is 4.5%.

Unsubsidized Stafford Loans are non-need-based loans for students who do not qualify for a Subsidized Stafford Loan or who have borrowed the maximum amount of Subsidized Stafford Loan available to them. The Unsubsidized Stafford Loan has a fixed interest rate of 6.8% for both undergraduate and graduate students. 

The federal government does not pay the interest that is accruing on the Unsubsidized Stafford Loan while you are in school.  You must pay all interest that accrues while you are in school, during the 6-month grace period, and during any periods of authorized deferment. You will have the following options: (1) making monthly or quarterly payments to the federal loan servicer, or (2) you may defer payment on the interest until you begin your repayment of the principal amount (capitalizing). The disadvantage of capitalizing interest is that you pay more interest over the life of the loan because you are also paying interest on the accrued interest.

For additional information:  Federal Direct Stafford Loans

Federal Direct Stafford Loan Limits

  

Maximum Subsidized Amount

Maximum Unsubsidized Amount

Combination Total

Dependent Undergraduates (excluding students whose parents are unable to borrow PLUS)

 

First Year

$3,500

$2,000

$5,500

Second Year

$4,500

$2,000

$6,500

Third Year & Beyond$5,500$2,000$7,500
Aggregate Loan Limits$23,000$8,500$31,000

Independent Undergraduates and Dependent Undergraduates whose parents are unable to borrow PLUS

 

First Year

$3,500

$6,000

$9,500

Second Year

$4,500

$6,000

$10,500

Third Year & Beyond$5,500$7,000$12,500
Aggregate Loan Limits$23,000$34,500$57,500

Graduate/Professional Students
Yearly$20,500
Aggregate Loan Limits$138,500

 

 

For students in the College of Pharmacy or students in the College of Health Professions seeking a Master in Health Administration (MHA) or Doctorate in Health Administration (DHA), the yearly limits are as follows:

 Academic Year Length

Maximum Unsubsidized amount per Academic Year

Additional Unsubsidized Amount per Academic Year

Combination Total

  9 months

$20,500

$12,500

$33,000

10 months

$20,500

$13,889

$34,389

11 months

$20,500

$15,278

$35,778

12 months

$20,500

$16,667

$37,167


For students in the College of Medicine or the College of Dental Medicine, the yearly limits are as follows:

 Academic Year Length

Maximum Unsubsidized amount per Academic Year

Additional Unsubsidized Amount per Academic Year

Combination Total

10 months

$20,500

$22,222

$42,722

11 months

$20,500

$24,444

$44,944

12 months

$20,500

$26,667

$47,167

*Note:  The aggregate limit for the MHA, DHA, COP, COM, and CODM programs is $224,000.

Federal Direct Parent PLUS Loan

Parents of dependent students may take out loans to supplement their children's aid packages. The Federal Direct Parent Loan lets parents borrow money to cover any costs not already covered by the student's financial aid package, up to the full cost of attendance. There is no cumulative limit.

Parent PLUS Loans are the financial responsibility of the parents, not the student. If the student agrees to make payments on the Parent PLUS Loan, but fails to make the payments on time, the parents will be held responsible.

The Parent PLUS Loan has a fixed interest rate of 7.9% for loans with a first disbursement after July 1, 2006. The interest is not subsidized while the student is in school. The Parent PLUS Loan charges loan fees of 4%, deducted from each disbursement check.

Repayment begins 60 days after the funds are fully disbursed, and the repayment term is up to 10 years. There is no six-month grace period as there is with the Stafford Loan program. However, the Ensuring Continued Access to Student Loans Act of 2008 (PL 110-227) added the option for parents to defer payments on the Parent PLUS Loan while the undergraduate student on whose behalf they borrowed the Parent PLUS Loan is in-school and for a six-month grace period after the student graduates or drops below full-time enrollment. This change is effective for Parent PLUS Loans first disbursed on or after July 1, 2008. (Payments can also be deferred if the parents are themselves enrolled in college. They will need to submit an application for an in-school deferment.) Note that since the interest on the Parent PLUS Loan is not subsidized, it continues to accrue while deferred and is capitalized when the loan enters repayment.

Eligibility for the Parent PLUS Loan depends on a credit check that determines whether the parent has an adverse credit history.  If a dependent student's parents are denied a Parent PLUS Loan, or the college financial aid administrator determines that the parents are likely to be denied a Parent PLUS Loan, the student becomes eligible for increased unsubsidized Stafford Loan limits. Only one parent needs to apply for and be denied a Parent PLUS Loan. However, if one parent is denied a Parent PLUS Loan and the other is approved for a Parent PLUS Loan, the student is not eligible for increased Stafford Loan limits.

For additional information:  Parent PLUS Loan

Federal Direct Graduate PLUS Loan

Starting on July 1, 2006, graduate and professional students became eligible to borrow money through the Graduate PLUS Loan program to pay for their own education.

The Graduate PLUS Loan will not reduce eligibility for the Stafford Loan, but the Graduate PLUS Loan limit will take the amount borrowed under the Stafford Loan into account. The Graduate PLUS Loan is limited to cost of attendance minus aid received, as certified by the school.  The Graduate PLUS Loan is a credit-based loan and has a fixed interest rate of 7.9%.  There is no grace period after graduation.

For additional information:  Graduate PLUS Loan

Summary of Federal Loans

Loan Name

Fixed Interest Rate

for loans disbursed from July 1, 2009 –
 July 1, 2010

Fixed Interest Rate

for loans disbursed from July 1, 2010 –
 July 1, 2011

Repayment

Cosigner or Endorser Needed?

Federal Perkins Loans

5%

5%

Begins 9 months after graduation

No.

Federal Direct Subsidized Loan

5.6% for Undergraduates; 6.8% for Graduates

4.5% for Undergraduates; 6.8% for Graduates

Begins 6 months after you graduate or enroll for less than half-time

No.

Federal Direct Unsubsidized Loan

6.8%

6.8%

Begins 6 months after you graduate or enroll for less than half-time

No.

Federal Direct Parent PLUS Loan

7.9%

7.9%

Begins 60 days after disbursement of funds (qualifies for in-school deferment)

Dependent upon credit decision.

Federal Direct Graduate PLUS Loan

7.9%

7.9%

Begins 60 days after disbursement of funds (qualifies for in-school deferment)

Dependent upon credit decision.


Private/Alternative Education Loans

Private/Alternative Education Loans help bridge the gap between the actual cost of your education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete. Eligibility for private student loans often depends on your credit score.

The interest rates and fees you pay on a private student loan are based on your credit score and the credit score of your cosigner, if any.  It is better to apply for a private student loan with a cosigner even if you could qualify for the loan on your own. Just applying with a cosigner usually results in a slightly lower rate, as such loans are not as risky for the lender. Moreover, the interest rates and fees are usually based on the higher of the two credit scores. If your cosigner has a better credit score than you, it could result in a lower interest rate.

Credit checks performed by lenders typically expire after 90-120 days. Therefore, students should not apply for private loans more than 3 months prior to the start of their academic term.

Suggested timeframes for application are:

  • June 1st for Fall term
  • October 1st for Spring term
  • February 1st for Summer term

Selecting a Lender

 

Health and Human Services (HHS) Loan Programs

Note:  Entrance Counseling is required for all HHS Loans.

HHS Loan Entrance Counseling

Loans for Disadvantaged Students

College of Dental Medicine, College of Medicine

Loans for Disadvantaged students are federal low interest loans regulated by the Department of Health and Human Services. Students must meet “disadvantaged background” criteria and have financial need. A signed Master Promissory Note is required prior to disbursement of funds.

Interest Rate: 5%
Grace Period: 12 months grace period.
Credit Policy: Non-credit based loan.
Special Requirements: Parental data required on the FAFSA; signed copy of parents’ tax return required.

Nursing Student Loan Program                                                                                        

College of Nursing

The Nursing Student Loan Program is a federal loan program offered through the Department of Health and Human Services which is available to at least half-time nursing students with demonstrated financial need. A signed Master Promissory Note is required prior to disbursement of funds.

Interest Rate: 5%
Grace Period: 9 months grace period.
Credit Policy: Non-credit based loan.

Primary Care Loan Program                                                                                           

College of Medicine

The Primary Care Loan Program offers federal loans regulated by the Department of Health and Human Services. This loan program provides low interest loans for medical students who are planning on practicing in the primary health care field. Recipients must enter and complete a residency training program in primary health care not later than four years after the date on which the borrower graduates; and practice primary health care through the date on which the loan is repaid in full. A signed Master Promissory Note is required prior to disbursement of funds.

Interest Rate: 5%
Grace Period: 12 months
Credit Policy: Non-credit based loan.
Special Requirements: Parental data required on the FAFSA; signed copy of parents’ tax return required.

Health Professions Loan Program

College of Dental Medicine, College of Pharmacy

The Health Professions Loan Program offers federal loans regulated by the Department of Health and Human Services. This loan program offers low interest loans to students needing financial assistance to become a dentist or pharmacist. A signed Master Promissory Note is required prior to disbursement of funds.

Interest Rate: 5%
Grace Period: 12 months
Credit Policy: Non-credit based loan.
Special Requirements: Parental data required on the FAFSA; signed copy of parents’ tax return required.





 
 
 

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