Loans

Stafford Loans
The amount on your eligibility letter indicates the maximum loan for which you are eligible. There is a 1% origination 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 standard repayment period for Stafford Loans is ten years, beginning six months after graduation or enrolling less than half-time (i.e. less than 6 credits/semester). 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. Filing for personal bankruptcy does not relieve you of your obligation to repay your student loans.

For Undergraduates

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. The fixed interest rate for the Subsidized Stafford Loan is 6.8%

The Federal Unsubsidized Stafford Loan is a non-need-based loan. All the terms are the same as for the Federal Subsidized Stafford loan except that interest begins accruing immediately.

Effective July 1, 2008, dependent and independent undergraduate students are eligible for an additional $2,000/year unsubsidized Stafford funding. The follow details the new limits available as of the 2008-2009 academic year:

For dependent students the annual limits for the combination of subsidized and unsubsidized Stafford are as follows:

• First-Year $5,500/year ($3,500/year may be subsidized if you qualify)
• Sophomore Year $6,500/year ($4,500/year may be subsidized if you qualify)
• Junior and Seniors $7,500/year ($5,500/year may be subsidized if you qualify)

For independent students the annual limits for the combination of subsidized and unsubsidized Stafford are as follows

• First-Year $9,500/year ($3,500 may be subsidized if you qualify)
• Sophomore Year $10,500/year ($4,500 may be subsidized if you qualify
• Juniors and Seniors $12,500/year ($5,500 may be subsidized if you qualify)

For Graduate Students

Federal Unsubsidized Stafford Loan
The Federal Unsubsidized Stafford Loan is non-need-based loan. All the terms are the same as for the Federal Subsidized Stafford loan except that interest begins accruing immediately and is the student’s responsibility, with the option to defer interest payment.

• The annual limit Federal Stafford is $20,500.