Student Loans

Educational student loans must be repaid, generally beginning after the student graduates, leaves school or ceases to be enrolled at least half-time. Interest is not charged on need-based loans, such as the Federal Perkins and Federal Subsidized Stafford loans, while the student is enrolled at least half-time and during their grace period. The College determines student loan eligibility by evaluating students' application for financial aid and will inform them of their eligibility through an Award Notification.

The Federal Perkins Loan is a need-based loan up to $1,650. The interest rate is fixed at 5.0%. The loan is interest-free while students are enrolled at least half-time and during a nine month grace period after leaving school/dropping below half-time attendance. The minimum monthly payment is $40 and begins nine months after leaving school.

The Federal Direct Subsidized Stafford Loan is a need-based loan. First-year students may borrow up to $3,500 and second-year students may borrow up to $4,500. The interest rate on loans first disbursed on or after 7/1/2010 is fixed at 4.5%. Loans first disbursed on or after 7/1/2011 and before 7/1/2012 are fixed at 3.4%. The loan is interest-free while students are enrolled at least half-time and during a six-month grace period after leaving school/dropping below half-time attendance. The minimum monthly payment is $50 and begins six months after leaving school/dropping below half-time enrollment.

Visit www.studentloans.gov for more information.

The Federal Direct Unsubsidized Stafford Loan is a non-need-based loan students may borrow each year while enrolled at least half-time in college. Dependent students may borrow up to $2,000 each year. Independent students and dependent students whose parents are denied a Parent PLUS Loan may borrow up to $4,000 each year. The interest rate is fixed at 6.8% and interest accrues during the entire length of the loan. The minimum monthly payment is $50 and repayment begins six months after leaving school/dropping below half-time enrollment.

Visit www.studentloans.gov for more information.

The Federal Direct PLUS Loan is a non-need-based loan parents may borrow to cover remaining educational expenses-including tuition, housing and living expenses. The interest rate is fixed at 7.9% and interest accrues during the entire length of the loan. The minimum monthly payment is $50, and repayment begins 45-60 days after the loan is fully disbursed. Parents may request to defer repayment while the child they borrowed for is enrolled at least half-time, delaying repayment until 45-60 days after the student leaves school/drops below half-time enrollment. A credit check is performed on all applications.

Visit www.studentloans.gov for more information.

There are alternative loans available for students needing additional financial aid. An alternative loan is a personal loan which allows students to borrow additional money to cover any remaining educational expenses-including tuition, housing and living expenses. These loans are credit-based and often require a credit-worthy cosigner. Since these are not Federal loans, lenders set their own loan terms. A few inportant factors to consider when selecting an alternative loan are: interest rate, fees and repayment terms. For more information, student/families may contact the Financial Aid office, search the internet or contact a local lender.

For more information, contact our Financial Aid Office at 800.322.7000 or prichey@psi-now.com.