Undergraduate Loan Programs

Undergraduate Aid | Nazareth Scholarships & Grants | Need-based Aid
Undergraduate Loan Programs | Outside Scholarships | Named Scholarships

Federal Stafford Loans:
Loans are both subsidized (government pays the interest while student is enrolled at least six hours) and unsubsidized (student is responsible for the interest). 2007-2008 Federal Stafford subsidized and unsubsidized loans carry a fixed interest rate of 6.8%. 2008-2009 unsubsidized Federal Stafford loans carry a fixed interest rate of 6.8% 2008-2009 Federal Stafford subsidized loans carry a fixed interest rate of 6.00% Maximum loan amounts vary according to grade level: freshman - $3500; sophomore - $4500; junior and senior - $5500.

Additional Unsubsidized Federal Stafford Loans:
Effective July 1, 2008, dependent undergraduate students are eligible for an additional $2000 unsubsidized Federal Stafford loan per year. Effective July 1, 2008, independent undergraduate students and dependent undergraduate students whose parents cannot borrow a PLUS loan are eligible to borrow additional unsubsidized Federal Stafford loans at a new total level. Maximum loan amounts vary according to grade level: freshman- $6000; sophomore - $6000; junior and senior $7000. The interest rate is a fixed 6.8% and the student is responsible for the interest while in school.

Federal Parent's Loan (PLUS):
Loans are available to parents of dependent students at a fixed rate of 8.5%. Maximum amount available is cost of attendance minus financial aid. Repayment of principal begins within sixty days after second disbursement of loan. Effective 7/1/2008, parents may defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half time. Most lenders participate in a "pre-approval" process which is the initial stage of the PLUS application. This allows parents to find out if they are eligible to borrow under the program. The Financial Aid Office encourages parents to take advantage of this opportunity in order to expedite the financing of their child's education.

Alternative/Private Loan Programs:
Various lenders offer private education loans, with different terms and interest rates available to students who are credit worthy or dependent students who apply with a credit worthy co-signer. 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. Families should carefully consider the overall costs of borrowing under alternative loan programs.

Choosing a Lender:

You are eligible to borrow Federal Stafford Loans and Parent PLUS loans from any lender that participates in the Title IV Federal Family Education Loan Program (FFELP). You are eligible to borrow a private education loan from any lender paticipating in private loan originations. Your choice of lender will not affect the manner in which the financial aid office will process your loan application. We suggest that you consider lenders that have sophisticated student loan capabilities and a tradition of offering quality service to students and families.

As a service to our students who may be undecided on a lender, we share in that our experience the lenders listed below provide quality service. Our recommendation is made solely on an observed history of service; no inducement or payment of any kind has been made by these lenders.

LENDER COMPARISON CHART

Effective 7/1/2008

Lender Name	Stafford Rate	Parent Plus Rate	Alternative/ Private Loan Rate	FFELP Borrower Benefits
Bank of America Lender Code: 824421 Phone: (800)344-8382	6.0% Sub 6.8% Unsub	8.5%	Product not offered	.25% Interest rate reduction for Bank Of America checking and savings customers.
Chase Lender Code: 803000 Phone: (800)487-4404	6.0% Sub 6.8% Unsub	8.5%	Chase Select Loan Variable rate per borrower credit score	.25% Interest rate reduction with auto-debit ACH payment.
Citibank Lender Code: 826878 Phone: (800)967-2400	6.0% Sub 6.8% Unsub	8.5%	CitiAssist Loan Variable rate per borrower credit score	.25% Interest rate reduction with auto-debit ACH payment. .50% Interest rate reduction when you enter repayment. Unlimited opportunities to earn back interest rate reduction if ever lost due to late payment.
KeyBank Lender Code: 811025 Phone: (800)539-5363	6.0% Sub 6.8% Unsub	8.5%	Key Alternative Loan Variable rate per borrower credit score	.25% Interest rate reduction with auto-debit ACH payment
Wachovia Lender Code: 830005 Phone: (800)338-2243	6.0% Sub 6.8% Unsub	8.5%	Product not offered	.25% Interest rate reduction with auto-debit ACH payment

Lender Name

Stafford Rate

Parent Plus Rate

Alternative/
Private Loan Rate

FFELP Borrower Benefits

Bank of America

Lender Code: 824421

Phone:
(800)344-8382

6.0% Sub

6.8% Unsub

8.5%

Product not offered

.25% Interest rate reduction

for Bank Of America checking and savings customers.

Chase

Lender Code: 803000

Phone:
(800)487-4404

6.0% Sub

6.8% Unsub

8.5%

Chase Select Loan

Variable rate per borrower credit score

.25% Interest rate reduction

with auto-debit ACH payment.

Citibank

Lender Code: 826878

Phone:
(800)967-2400

6.0% Sub

6.8% Unsub

8.5%

CitiAssist Loan

Variable rate per borrower credit score

.25% Interest rate reduction

with auto-debit ACH payment.

.50% Interest rate reduction
when you enter repayment.

Unlimited opportunities to earn back interest rate reduction if ever lost due to late payment.

KeyBank

Lender Code:
811025

Phone:
(800)539-5363

6.0% Sub

6.8% Unsub

8.5%

Key Alternative Loan

Variable rate per borrower credit score

.25% Interest rate reduction

with auto-debit ACH payment

Wachovia

Lender Code:
830005

Phone:
(800)338-2243

6.0% Sub

6.8% Unsub

8.5%

Product not offered

.25% Interest rate reduction with

auto-debit ACH payment

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