Families often ask us about loan options to help with college cost
payments. The preferred loan options are the Federal Direct and Federal
Perkins loans--because of their student-only assignment provisions and
their low interest rates.
FEDERAL DIRECT STAFFORD LOAN PROGRAMS
If you file a FAFSA and are enrolled at least half time, you may qualify for a Direct (Stafford) Loan, which is a long-term, low-interest loan. These loans are originated by the university at the time your Financial Aid Award is generated. The FAFSA is the application for the Direct (Stafford) Loan(s) and you need do nothing further other than sign the Master Promissory Note (MPN) and complete an Entrance Counseling tutorial at studentloans.gov.
As an undergraduate student, you may borrow up to $5,500 in Federal Direct (Stafford) Loans your first year, with the dollar amount increasing as you progress academically. Your enrollment level plays a role in your loan eligibility since you must be enrolled at least half-time, which requires at least six hours of credit in a term. There is no requirement to demonstrate financial need.
As a graduate student, you may borrow up to your Cost of Attendance or $20,500/year (whichever is less) in a Federal Direct (Stafford) Unsubsidized Loan. Your enrollment plays a role in your loan eligibility since you must be enrolled at least half-time, which requires at 4.5 - 6 hours of credit in a term (depending upon the course of study).
FEDERAL PERKINS LOAN
The Federal Perkins Loan program has some similarities to the Federal Stafford Loan Program. For instance, both programs provide low interest loans to help students finance the cost of postsecondary education. Additionally, you must complete a Master Promissory Note (available at the Business Office) to receive these funds.However, there are some differences notable differences between these programs.
Whereas, the Federal Direct Stafford Loans have annual and lifetime limits set by the Department of Education the Federal Perkins Loan is administered by The University of Findlay and has additional limits set by institutional policy.
At The University of Findlay the typical Perkins Loan
generally ranges from $1,000 to $1,500 and assists a limited number of
students. Likewise, the Federal Direct Loan can cover up to $5,500 (at
least $2,000 will be unsubsidized) for a student's freshman year, per
federal regulation. Often, students still have remaining balances, and
families seek additional loan options for those balances.
A benefit to this type of loan is that borrowed funds are eligible for loan cancellation for teaching service at low-income school systems.
FEDERAL PLUS LOAN OPTIONS
There are two types of PLUS loan options available to students:
Parent PLUS Loans – Your parents may also have the option of applying for a Parent PLUS loan if you are enrolled at least half-time at the undergraduate level, are a dependent student, and have completed a FAFSA. The loan is in the parent’s name, but on your behalf, and is credit-based. Parent PLUS loans have a fixed interest rate of 7.9%. If the parent does not qualify, additional unsubsidized loan funds can be obtained. Click here to learn more or apply.
Graduate PLUS loan - A Graduate-level student has the option of applying for a PLUS loan if they are enrolled at least half-time and have completed the FAFSA. The Grad PLUS loan is credit-based and has a fixed rate of 7.9%. Click here to learn more or apply.
These loans allow students to borrow up to the total cost of attendance less other financial aid. For example, if the student's cost of education is $34,000 and the aid
awarded is $17,000, then the Direct PLUS Loan may range up to
$17,000. The loan will
be
disbursed in two installments--one in late August and one in late
December. The repayment generally begins after the loan is fully
disbursed, (late February), but the parent may be able to defer payment
until after the student graduates, and must contact Direct Loans to
discuss deferment options. The typical repayment period is 10
years. Click on the following link to begin the Direct PLUS
Loan application studentloans.gov.