Loan Program Descriptions

Federal Stafford Loans:
Loans are both subsidized (government pays the interest while student is enrolled at least six hours) and unsubsidized (government does not pay the interest while the student is enrolled at least 6 credit hours.) Students must be matriculated and taking at least six credits each semester to be eligible for Stafford loans. The current 2009-2010 Federal Stafford subsidized loan interest rate is 5.6% fixed. The current 2009-2010 Federal Stafford unsubsidized interest rate is 6.8% fixed. Annual subsidized loan amounts vary according to grade level: freshman- $3500; sophomore-$4500; junior and senior -$5500. Annual unsubsidized loan amount is $2000, regardless of grade level.

Additional Unsubsidized Federal Stafford Loans:
Dependent undergraduates whose parents are not eligible to borrow a Parent PLUS loan and independent undergraduate students are allowed to borrow additional unsubsidized Federal Stafford loans. Annual loan amounts vary according to grade level: freshman- $4000; sophomore- $ 4000; junior and senior-$5000.

Federal Parent PLUS loans:
Loans are available to parents of dependent students at a fixed interest rate of 8.5% Maximum loan amount available is the annual cost of attendance minus financial aid. Repayment of principal and interest begin within sixty days after full disbursement of the loan unless the parent has requested an in-school deferment from the lender.

Alternative/Private Loan Programs:
Various lenders offer private education loans, with different terms and interest rates available to students who are credit worthy or who apply with a credit worthy co-signor. These loans are non-need based and most of them can be deferred while the student is in school. Interest rates and terms vary according to credit worthiness.

Office of the Ombudsman:
The Department of Education has established the Office of Ombudsman to reconcile any disputes between borrower and the lender or guaranty agency which are not able to be resolved through any other means. The toll-free number is 1-877-557-2575.