MyFederal Loans
While an investment in your education is one of the best you can make, keep in mind that the majority of all student loans will have to be paid back. On occasion, you may be awarded more loan funds than you need to cover the Cost of Attendance or your personal budget is lower than what the college has budgeted. In either case, it is best to Borrow Only What You Need.
Federal Perkins Loan
A Perkins Loan is a need-based loan, and eligibility determined by the FAFSA. This is a campus-based program and subject to the college’s participation and availability of funds. Therefore, not every college will have a Perkins Loan to offer and the ones that do may not be able to offer the maximum annual amount.
5% Interest Rate - Does not accumulate during non-repayment periods.
Undergraduates may borrow up to $4,000 annually and $20,000 total.
Graduate Students may borrow up to $6,000 annually and $40,000 total.
Repayment begins 9 months after enrollment drops below ½ time.
10 years average repayment schedule
If you have been awarded a Perkins Loan you will need to complete the Perkins Loan Application Process as required by the college. More information and directions may be found on the schools web site or by contacting the Financial Aid Office.
Federal Stafford Loans
The Stafford Loan Program consists of the Subsidized Loan and Unsubsidized Loan. Both are guaranteed by the Federal Government and offer many benefits to the student borrower. It is important to understand the qualifications for each are unique and the role Dependency Status plays. Most traditional undergraduate students are considered Dependent Students; this is regardless of your family’s ability or willingness to assist with college expenses. The Higher Education Act of 1965 defines an Independent Student as:
Student was born before January 1, 1985
Student enrolled in a Graduate Degree/Certificate Program
Student is married or separated
Student has dependents they provide more than half of their support
Student has Military Service as a Veteran, Active Duty Enlistee, or Reserve Called to Active Duty
All students who are not Independent as defined above are Dependent for Federal Student Aid considerations.
Subsidized Stafford Loan is a need-based loan, as determined by the FAFSA. The federal government will pay the interest on your loan during periods of at least half time enrollment, grace period and approved deferment periods.
Unsubsidized Stafford Loan is awarded to Independent and Graduate Students, as determined by the FAFSA, and Dependent Students in the event that their Parent(s) have been denied a Parent PLUS Loan.
The Interest Rate for Federal Stafford Loan Lenders is set by the Federal Government and is the same for all FFELP (Federal Family Education Loan Program) Lenders.
Fixed Interest Rate (7/1/08 –09)
6.0% Subsidized Stafford Loans
6.8% Unsubsidized Stafford Loans
After you graduate, leave school, or drop below half-time enrollment you have a onetime grace period of 6 months prior to your 1st payment.
The repayment periods are generally set at 10 years. Depending on your needs, amounts borrowed, and ability to repay may be extended up to 30 years.
Select MyEd student loans as your Stafford Loan Lender.
Parent PLUS Loan
Parents of Dependent Undergraduate Students may borrow up to the Cost of Attendance, less other financial aid, as determined by the college, through the Federal PLUS Loan Program. Most traditional students are considered Dependent Students; this is regardless of your family’s ability or willingness to assist with college expenses. The Higher Education Act of 1965 defines an Independent Student as:
Student was born before January 1, 1985
Student enrolled in a Graduate Degree/Certificate Program
Student is married or separated
Student has dependents they provide more than half of their support
Student has Military Service as a Veteran, Active Duty Enlistee, or Reserve Called to Active Duty
All students who are not Independent as defined above are Dependent for Federal Student Aid considerations.
This is a credit-worthy loan with a fixed interest rate of 8.5%.
The annual PLUS Loan amount is calculated by the Cost of Attendance (determined by the school) minus All Aid (Scholarships, Grants, Work Study, Perkins and Subsidized Stafford Loan) = Unmet Need (amount the school can certify for a PLUS Loan)
Parents are free to reduce the amount certified by the school. Students of parents who have been denied may be eligible for an Unsubsidized Stafford Loan; contact the Financial Aid Office for assistance.
A Parent PLUS Loan enters repayment when the loan is fully disbursed; most often an Academic Year Loan will be disbursed half in the fall and half in the spring. The first payment is usually due 60 days after the loan is fully disbursed (within 60 days after the second disbursement) in the spring.
The repayment periods are generally set at 10 years, yet depending on your needs, amounts borrowed, and ability to repay, may be extended up to 30 years.
Select MyEd student loans as your Parent PLUS Loan Lender
Graduate PLUS Loan
This is a credit-worthy loan with a fixed interest rate of 8.5%.
The annual GRAD PLUS Loan amount is calculated by the Cost of Attendance (determined by the school) minus All Aid (Scholarships, Grants, Work Study, Perkins and Subsidized Stafford Loan) = Unmet Need (amount the school can certify for a PLUS Loan)
A Grad PLUS Loan enters repayment when the loan is fully disbursed; most often an Academic Year Loan will be disbursed half in the fall and half in the spring. The first payment is usually due 60 days after the loan is fully disbursed (within 60 days after the second disbursement) in the spring. However, Graduate Students are eligible for an In-School Deferment.
Select MyEd student loans as your Graduate PLUS Loan Lender