Federal Stafford Loan (FSL) -- Subsidized and Unsubsidized
Source: Private Lender / Federal Government
Processed by: Alfred University
Eligibility:
Undergraduate students matriculated in a degree program for at least six credits per semester and who are U.S. citizens or permanent residents may apply.
Value:
The FSL Program makes two types of loans available to students: A subsidized loan and an unsubsidized loan.
Subsidized Stafford Loan eligibility is based on financial need as determined by the Federal Need Analysis Methodology. When a student qualifies for a subsidized loan, the federal government makes the interest payments on behalf of the student while the student is enrolled in school. Students who do not qualify for any or a full subsidized loan are eligible for the unsubsidized Stafford Loan. Under the unsubsidized FSL Program, the student is responsible for making the interest payments while enrolled in school. There are two options available regarding these interest payments. Students may make monthly or quarterly interest payments to the lender, or the student and lender may agree to add the interest due to the principal of the loan. Annual base FSL limits are: $3,500 for freshmen, $4,500 for sophomores, $5,500 for juniors and seniors. Students may not borrow more than the annual loan limit in any combination of subsidized or unsubsidized FSL. The interest rate is a fixed rate, currently set at 6.8%. Repayment of loan principal begins six months after the student ceases to be enrolled on at least a half-time basis. The repayment period may extend up to ten years depending on the total amount borrowed. The minimum monthly payment is $50. Independent students may have additional unsubsidized Stafford Loan eligibility beyond the annual base loan limits specified above. This additional annual eligibility may not exceed the cost of attendance minus other aid (including the base FSL). Freshmen and sophomores may be eligible to borrow up to $4,000 annually, juniors and seniors up to $5,000 annually.
How to Apply:
Complete the Free Application for Federal Student Aid and Stafford Loan Master Promissory Note (MPN). First time Stafford Loan Borrows must also complete an entrance counseling session, click here. Information regarding the Stafford loan process is provided to students by the Student Financial Aid Office at the appropriate time.
Students who presently have a Federal Stafford Loan must continue to borrow from the same lender. Alfred University does not participate in the Direct Loan Progrm. Therefore, if you previously borrowed under the Direct Loan Program, you must choose a lender for the Federal Stafford Loan Program.
Additional information regarding Stafford loans will be forthcoming . It is being updated for the 2008-09 academic year. We expect additional information to be available by the beginning of March.
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Federal Parent Loan for Undergraduate Students (PLUS)
Source: Private Lender / Federal Government
Processed by: Alfred University
Eligibility:
Parents of dependent undergraduate students who are all U.S. citizens, permanent residents, or eligible non-citizens. Student must be attending at least half-time (six credits per semester) in a degree-granting program.
Value:
Parents may borrow up to the cost of attendance minus other aid for each financially dependent undergraduate student. Borrowers must demonstrate a satisfactory credit rating to participate. Repayment of principal and interest generally begins 60 days after full disbursement. PLUS loans have a fixed
interest rate currently set at 8.5%. The repayment period may extend up to 10 years, depending on the amount borrowed. The loan may not exceed the difference between the student's cost of attendance and total financial assistance, including Stafford Student Loans. The Student Financial Aid Office will notify borrowers of the amount of their eligibility upon request or receipt of a PLUS application.
How to Apply:
Complete the Free Application for Federal Student Aid and submit a PLUS application to the Financial Aid Office. PLUS Application instructions will be provided to parents by the Student Financial Aid Office at the appropriate time.
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