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FEDERAL FAMILY EDUCATION LOAN PROGRAMS are a cooperative effort between lending institutions and the state and federal governments that enable qualified students to secure long-term, low-interest loans for educational costs. Subsidized Federal Stafford Loans are based on need. The approved form is the Free Application for Federal Student Aid (FAFSA).
The Federal Loan Application allows students to apply for the Subsidized Federal Stafford Loan and the Unsubsidized Federal Stafford Loan on one application. A subsidized loan is awarded based on financial need. No interest is charged on these loans while students are enrolled in school or during authorized deferment periods. First year students may borrow a maximum of $3,500 per academic year; second year students may borrow up to $4,500 per academic year.
If a borrower does not qualify for any part of the need-based loan, the student will be offered an "unsubsidized" Stafford Loan. Students with unsubsidized loans will be responsible for the interest during the in-school and deferment periods. Independent undergraduates may borrow a maximum of $4,000 per academic year in Federal Unsubsidized Stafford Loan funds in addition to the subsidized loan limits.
The interest rates for the Federal Family Education Loan Programs are fixed. For loans first disbursed on or after July 1, 2007, the annual rate is 6.80 percent for the Subsidized and Unsubsidized Federal Stafford Loans.
The Master Promissory Note will be sent to students who request a loan on the FAFSA. Students may contact the PHEAA Loan Division at 800.692.7392 to request an MPN, or they may apply on line at www.aesuccess.org.
STAFFORD LOAN applications can be requested from the student’s lending institution or state guaranty agency. The PHEAA Loan Division may be reached at 1-800-692-7392.
The PLUS LOAN PROGRAM is not based on financial need. The PLUS Loan allows parents with good credit to borrow for each child who is enrolled at least half-time and is a dependent student. The yearly loan limit is the cost of education minus the student’s estimated financial aid. The interest rate is fixed at 8.5 percent and is charged from the date of the first disbursement. Repayment begins within 60 days of the second loan disbursement. (Some lenders will defer payments up to 48 months. Parents can apply on-line at www.aessuccess.org).
The NURSING STUDENT LOAN PROGRAM is intended to help students achieve careers in nursing by providing long-term low interest loans to help meet education costs. These loans are awarded to full- and part-time students and are determined on an individual basis by the Financial Aid Office. Students may borrow a maximum of $2,500 per academic year. Funds are limited, and students are awarded on a first-come, first-served basis. The interest rate of 5 percent begins nine months after graduation or withdrawal, and repayment may extend over a 10-year period. To be eligible for consideration, students must have a current needs analysis form on file in the Financial Aid Office, be a citizen of the United States or an eligible non-citizen, and be enrolled or accepted for enrollment as a full- or part-time student. Interested students should contact the Financial Aid Office.
