All students who file a FAFSA are eligible for federal loans. There are two different types of federal loans: the Federal Direct Loan and the Federal Perkins Loan. Which type of loan you are eligible for depends on the information that is collected from the FAFSA. The Financial Aid Office determines which types of federal loans you are eligible for, and the loans will be listed on your official award letter.
This is a federally guaranteed loan. There are two types of Direct Loans: subsidized and unsubsidized.
You will have the option to pay this interest or to have it capitalized. The Subsidized portion of the loan will depend on the need that is determined from your FAFSA information. If you have no need or low need, you will receive the Unsubsidized portion instead. For both loan types, the principle loan payments are deferred while a student is enrolled at least half-time and repayment on the loans does not start until 6 months after the student drops below half-time enrollment, graduates or withdraws.
There is a 1.072% origination fee on all unsubsidized and subsidized loans if the loan is disbursed on or after December 1, 2013 and a 1.0730% origination fee if the loan is disbursed on or after October 1, 2014. For more information visit the federal direct loan website.
The Federal Perkins loan is a guaranteed federal loan with a fixed 5% interest rate. The principle and interest payments are deferred while the student is enrolled at least half-time. Repayment on this loan does not begin until 9 months after the student drops below half-time enrollment, graduates, or withdraws. Funds for this loan are extremely limited, therefore, not everyone who qulaifies will receive the loan.
Funds are very limited and are awarded on a first-come, first-serve basis. To qualify for this loan, you must qualify for a Pell Grant and meet our FAFSA application deadline of March 15th. If you are eligible, the loan will be listed on your award letter.