financial aid

loans

Federal Stafford Loan:

Students who would like to continue their education, but cannot afford it might be interested in borrowing a Federal Stafford Loan.

This is a loan that is set up by the Federal Government and certified by the school. The lender will hold the Master Promissory Note signed by the student.

There are two types of Federal Stafford Loans that the student may be eligible for: subsidized and unsubsidized. The subsidized Federal Stafford Loan is based on need. If the student qualifies, the government pays the lender the interest due on the loans while the student is in school and during the grace and deferment periods. Otherwise, the student is responsible for interest that accrues on their subsidized loan. The unsubsidized Federal Stafford Loan is not based on need. The student is responsible for all interest that accrues on their unsubsidized loan.

How much can I borrow?

If you are a dependant*, you may borrow a Stafford Loan up to...

First Year Students:                 $2,625.00
Second Year Students:             $3,500.00

If you are independent**, you may borrow a Stafford Loan up to...
First Year Students:                $6,625.00
Second Year Students:            $7,500.00

* In most cases, a student that was born after 1/1/79 is a dependant during the 2003-2004 school year and will have to claim their parent’s information on the FAFSA. If you feel you qualify to be independent and were born after that date, please contact the Financial Aid office.

** In most cases, a student that is married or born prior to 1/1/79 is independent for the 2003-2004 school year and does not have to claim their parent’s information on the FAFSA.

The amount you will be borrowing is not what will be put toward your cost of the school year. The bank charges an origination fee of 3% that will be deducted from the amount you borrow.

The current interest rate, set by the Department of Education, is 3.64% for Stafford Loans disbursed between July 1, 2002 and June 30, 2003. This is based on the 91-day T-bill + 1.7%, not to exceed 8.25%. Interest rates are variable and reset each July.

Our Financial Aid Office works through Sallie Mae Guarantee Services. All of our loans are done electronically through them. If you would like, you may apply for this loan over the Internet at http://www.wiredscholar.com. This is a secured website and the procedure is very simple. You may also go through our office to apply, feel free to contact our office for that procedure.

Parent PLUS loan:

Because the amount a student is able to borrow does not cover the cost of the school year, parents may borrow up to the outstanding educational need.

The Parent PLUS loan is also set up by the Federal government and certified by the school. The lender will hold the Master Promissory Note signed both by the parent and the student.

Parents have 10 years to repay the loan with the first payment due after the 3^rd disbursement. There is no pre-payment penalty on the PLUS loan.

The current interest rate, set by the Department of Education, is 4.86% during the loan period of July 1, 2002 and June 30, 2003. This is based on the 91-day T-bill + 3.10%, not to exceed 9%. Interest rates are variable and reset each July.

The application procedure is very similar to the Stafford Loan. You may apply for this loan over the Internet at http://www.wiredscholar.com. This is a secured website and the procedure is very simple. You may also go through our office to apply, feel free to contact our office for that procedure.

If you would like a fast response for your approval, you may call 800-891-1410. If you are approved, they will send a paper application to you to complete. If you are denied for the PLUS loan, the student may borrow up to an additional $4000 of an unsubsidized loan for their school year.

Alternative Loan:

This is a new loan program the banks have begun processing. It is designed to assist a student with covering the remaining balance of the school year that loans, grants, and scholarships may not cover.

Our Financial Aid office must be set up with a bank’s Alternative loan program in order for the Alternative loan to be approved. We are currently working with three different banks for the Alternative loan program:

You may apply on the Internet for these, contact the lender for an application, or contact us for an application as well.

If you choose to do the Alternative loan, we suggest that you combine it with a Stafford Loan, which is usually less interest than the Alternative alone.



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