The amount on your eligibility letter indicates the maximum loan for which you are eligible. Lenders may charge up to 1.5% origination fee and a 1% federal default fee deducted from the loan proceeds. The net amount of the loan after these deductions is the amount that will actually be applied to your tuition account.
The Federal Stafford Loan is a long-term, low interest federally regulated student loan. The interest rate is fixed at 6.8%. Stafford Loans are part of the Federal Family Education Loan Program which is funded by private lenders, such as CollegeInvest and Citibank.
The standard repayment period for Stafford Loans is ten years, beginning six months after graduation or falling below half-time status. Failure to make loan payments can result in adverse credit rating, legal action and wage garnishment. Even if your loan is sold to another lender or the servicer changes, you are responsible for making monthly payments, regardless of whether or not the paperwork has been transferred. We encourage students to simplify the loan repayment process by keeping the same lender throughout their academic career. Filing for personal bankruptcy does not relieve you of your obligation to repay your student loans.
Federal Subsidized Stafford Loan
The Federal Subsidized Stafford Loan is need based. Interest is subsidized (paid) by the federal government as long the student is attending school at least half-time.
Annual limit: $8,500
Federal Unsubsidized Stafford Loan
The Federal Unsubsidized Stafford Loan is non-need-based loan. All the terms are the same as for the Federal Stafford loan except that interest begins accruing immediately and is the student’s responsibility, with the option to defer interest payment.
The annual limit for the combination of subsidized and unsubsidized Stafford is $20,500.
Federal PLUS loan for Graduate Students
Due to new federal legislation, graduate students are now eligible to borrow additional funding through the PLUS program. Graduate students may borrow up to the cost of attendance minus any other financial aid. PLUS for GRAD borrowers are subject to the same requirements as PLUS parent borrowers and must be credit worthy. Interest rates are fixed at 8.5% and repayment begins sixty days after final disbursement of funds. It may be possible to pay interest only or reduced payments while you are enrolled at least half time. There is a 3% origination fee and a 1% federal default fee deducted by the lender from all PLUS loan proceeds. To apply online for the PLUS for GRAD loan please go to www.studentloanonline.com tto apply through the lender of your choice online. Also complete the PLUS for GRAD Loan Amount Request Form. Return the PLUS for GRAD Loan Amount Request Form to Naropa’s Financial Aid Office.
Private Loan
Naropa University awards educational loans primarily from the federal student loan programs ( Stafford, PLUS and Perkins). Some lenders advertise private loans that “mimic" the federal student loan programs but which differ in important ways: the interest rates are variable and have no ceiling, the loans are credit based, the lender may charge high fees, and private loans result in an additional monthly student loan payment for the student because they cannot be included in a federal Consolidation loan after the student finishes college. Naropa University requires an extensive review of the student's financial situation before possibly including a private loan in the student's financial aid package. Naropa University reserves the right to refuse certification of a private student loan even though a lender may have approved the student for a private loan. Aid from all sources cannot exceed the student's cost of attendance. Please send an email to finaid@naropa.edu with the words "Private Loan" in the subject line if you would like to start the process of requesting consideration of inclusion of a private loan in your financial aid package.
