Understanding Your Financial Aid Package

While numerous scholarships are available for upperclassmen, incoming students are only eligible for incoming scholarships. If a student does not qualify for an incoming scholarship, federal loans may be used to finance one’s education.

On the award letter, if a student has been awarded a scholarship, it will be listed under the “Source” section. Also, a student’s loan eligibility will be listed.

Two types of loans will be listed on the award letter: Subsidized and Unsubsidized.

Subsidized Stafford Loan

A Subsidized Stafford Loan is a need-based loan, as determined by the FAFSA. The federal government pays the interest while you are enrolled at least half time. There is a six-month grace period after your last date of at least half-time enrollment before you begin repayment on the loan. The U.S. Department of Education will charge a 1.0 percent loan origination fee for processing your loan. However, direct loan borrowers receive an interest rate rebate of 0.5 percent, reducing the up front fee to 0.5 percent. Upon entering repayment, borrowers must make their first 12 loan payments on time to keep this benefit.

For GRADUATE and PROFESSIONAL STUDENTS: The interest rate is fixed at 6.8 percent for all Subsidized Stafford Loans with a first disbursement on or after July 1, 2006.

 

***IMPORTANT ANNOUNCEMENT***

The Budget Control Act (BCA) of 2011 was signed into law on August 2, 2011.  The Act significantly affects graduate and professional students. Effective for loans made beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The annual loan limit for graduate and professional students remains unchanged at $20,500, but this amount will now be limited to Direct Unsubsidized Loans.

 

 

Unsubsidized Stafford Loan

An Unsubsidized Stafford Loan is a non-need-based loan. You are responsible for all interest from the time the loan is disbursed until it is paid in full. You may pay the interest while you are enrolled or allow it to accrue and be capitalized. For undergraduate, graduate and professional students, the interest rate is fixed at 6.8 percent. The U.S. Department of Education will charge a 1.0 percent loan origination fee for processing your loan. However, direct loan borrowers receive an interest rate of rebate of 0.5 percent, reducing the up front fee to 0.5 percent. Upon entering repayment, borrowers must make their first 12 loan payments on time to keep this benefit.

Subsidized and Unsubsidized loans will not cover the entire Cost of Attendance. A federal, credit-based loan is available to students. The Graduate Plus loan may be used to cover any remaining costs.

Plus Loans for Graduate and Professional Students

Graduate and Professional degree students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The requirements include a determination that the applicant does not have an adverse credit history. Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate/Professional PLUS loan. Students must complete an application/master promissory note online. The loan has a fixed interest rate of 7.9 percent and loan fees are 4 percent with an upfront interest rebate of 1.5 percent. Upon entering repayment, borrowers must make their first 12 loan payments on time to keep this benefit.