Loan Information
Notice regarding Congressional changes to Direct Loan Program:
U.S. Congress has enacted a number of legislative changes during the past year that will affect the federal loan programs beginning fall semester 2012. The Budget Control Act of 2011, signed into federal law in August 2011, includes the following:
Elimination of Loan Interest Subsidy for Graduate Studies: Effective July 1, the Subsidized Stafford Loan will no longer be available to graduate and professional students for loan periods beginning on or after July 1, 2012. The graduate Stafford loan program will become entirely unsubsidized, which means that the borrowed amount will accrue interest while the student is in school. The annual and aggregate borrowing limits will not be affected (the maximum amount a student can borrow in the Stafford loan program will remain at $20,500 per academic year), and all students are automatically evaluated for loan eligibility.
Elimination of Loan Fees Rebate: Currently, there is a 1% origination fee on the Stafford loan, but a portion of the fee (0.5%) is refunded to the borrower at the time of disbursement. Effective July 1, 2012 the rebate will be eliminated and the full fee will be charged to students.
Elimination of Grace Period Interest Subsidy: Effective July 1, 2012, for new Subsidized Stafford Loans, the interest subsidy during the six-month grace period has been eliminated for students who fall below half-time status.
Elimination of Loan Fees Rebate: Currently, there is a 4.0% origination fee on the PLUS loan, but a portion of the fee (1.5%) is refunded to the borrower at the time of disbursement. Effective July 1, 2012 the rebate will be eliminated and the full fee will be charged to parents and students.
Student loans are a cost-effective way to help finance a college education by borrowing funds at a low interest rate. Several loan programs are available for students and parents who display financial need, including the Federal Direct Subsidized Stafford Loan and the Federal Perkins Loan. Other loans, such as the Federal Direct Parent Loan for Undergraduate Students (PLUS) and the Federal Direct Unsubsidized Stafford Loan, are available to all students regardless of need
The Federal Direct Stafford Loan Program has two types of loans, subsidized (need based) and unsubsidized (non-need based). The Stetson University Office of FinancialAid will review the results of your FAFSA to determine your eligibility for either of these loans. In order to receive funds you will need to complete the Federal Direct Stafford Loan Master Promissory Note, which serves as the legal document requiring you to repay the loan. After you apply for the Federal Direct Stafford loan, they will notify our office and we will process your Federal Stafford loan.
Subsidized Stafford Loan
The Federal Direct Subsidized Stafford Loan is available to students who exhibit financial need as determined by the FAFSA. The loan features a low interest rate, and interest does not begin to accrue until six months after the student has ceased to be enrolled at least half time in college, at which point repayment begins. For the academic year, a student may borrow up to $3,500 as a freshman, $4,500 as a sophomore, and $5,500 duringthe junior and senior years of college.
Unsubsidized Stafford Loan
The Federal Direct Unsubsidized Stafford Loan is available to all students who do not qualify for the Federal Subsidized Stafford Loan. Loan amounts are the same asthose listed for the subsidized loan; however, under the unsubsidized loan program, interest on the loan begins to accrue while the student is still enrolled in school. In addition, independent students, and dependent students whose parents are ineligible for the PLUS Loan due to adverse credit may borrow up to an additional $4,000 each year during the first and second years of college, and up to an additional $5,000 each year during the junior and senior years. Graduate students may borrow up to $20,500 per year. Repayment on the unsubsidized loan begins six months after the student ceases to be enrolled at least half time.
Annual unsubsidized Stafford loan limits for all undergraduate students are increased by an additional $2,000 per year under H.R. 5715, effective for loans first disbursed after July 1, 2008. The National Association of Student Financial Aid Administrators (NASFAA) developed a Loan Limits Under H.R. 5715 Chart to help show the changes in annual and aggregate loan limists: http://www.nasfaa.org/PDFs/2008/5715AnnualLoanLimits.pdf
Parent Loan for Undergraduate Students (PLUS)
Federal Direct Parent PLUS loans are available to parentsof dependent students. This loan allows parents to borrow the cost of each child's education minus other assistance the child receives while he or she is enrolled at least half time. If youbelieveyou will be ineligible for the PLUS Loan due to adverse credit you should still apply and allow yourself to be "denied" this loan. With this denial your student would be eligible for an additionalunsubsidized Stafford Loan. Please submit the denial letter to the Office of Financial Aid.
Graduate Plus Loan
The Federal Direct Graduate PLUS loan program is available to creditworthy graduate and professional students and allows them to borrow up to the cost of a student's education minus any other financial aid awarded. Graduate and professional PLUS loan borrowers must file the Free Application for Federal Student Aid(FAFSA).Students must first borrow from the Federal Direct Stafford loan program before requesting/applying for theFederal Direct Graduate PLUS. Federal regulations require that all first time Graduate PLUS Loan borrowers participate in loan entrance counseling so that you are aware of your rights and responsibilities. Your Graduate PLUS Loan funds will not be received until this requirement is completed. The Federal Direct Graduate PLUS loan offers a fixed interest rate of 9.7%. The standard repayment period begins immediately following the final disbursement of your loan. The standard repayment term is 10 years. However, graduate and professional student-borrowers are eligible for in-school deferment.
Federal Perkins Loan
The Perkins Loan is a low-interest loan for undergraduate and graduate students who exhibit exceptional financial need. The loan is made with government funds with aportion contributed by Stetson University. Stetson University is the lender, and repayment is made through our Office of Student Loans. Eligibility is determined by the Office of Financial Aid.