Federal Perkins
Loans Depending upon financial need and the availability of funds, loans of
up to $4,000 annually, with a maximum of $20,000 for an entire undergraduate
college career are available. These loans bear interest at the rate of 5 percent
per annul beginning nine months after the student ceases to carry at least one-half
the normal academic course load. The first payment on principal and interest
is due one month later at the minimum rate of $40 per month.
Subsidized Federal Stafford Loans
The maximum loan under this program is $3,500 for the first year of study, $4,500
for the second year of study and $5,500 per year for subsequent undergraduate
study. The current interest rate is available at www.studentloans.gov. Repayment
begins 6 months after graduation or after a student ceases to be enrolled. Interest
is paid for borrowers who demonstrate a financial need and for whom repayment
has not yet begun.
Unsubsidized Federal Stafford Loans
This program is the same as the Subsidized Federal Stafford Loan program with
two exceptions:
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Financial need is not an eligibility criterion.
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The student is responsible for interest payments for the life of the loan
beginning with the first disbursement. The current interest rate is available
at www.studentloans.gov.
Any federally eligible dependent student may borrow up to $2,000 per academic
year from this program on top of the amount listed in the previous section.
Independent students may borrow more.
United Methodist Student Loans
Members of the United Methodist Church are eligible to apply for loans of up
to $5,000 per calendar year. The interest rate on these loans is 5 percent,
and interest accrues from the inception of the loan. Repayment begins 6 months
after graduation or withdrawal from school. Final payment is due no later than
10 years from the date of the first payment. Apply at
www.gbhem.org.
Federal Direct PLUS for Parent Loan
The PLUS program makes loans available to credit worthy parents of dependent
undergraduate students. PLUS borrowers are not required to demonstrate financial
need and may borrow up to the cost of attendance minus other aid. The current
interest rate is available at www.studentloans.gov. The standard repayment term
is 10 years and there are no prepayment penalties.