Federal Direct Loan Program
The Federal Direct Loan Program provides low-interest loans to students regardless of income or financial need. Students with unmet financial need (as per the FAFSA) qualify for a subsidized Federal Direct Loan, meaning that there is no interest on the loan while the student is in college.
Students with no financial need may still borrow an unsubsidized Federal Direct Loan. Unsubsidized means that interest is charged on the loan while the student is in college. Students have the option of paying only the interest on the loan while they are in college; or they can allow the interest to accumulate along with the principal (the amount borrowed) and begin repayment when they graduate. The interest rates on the unsubsidized Federal Direct Loan vary from year to year, but never exceed 8.25%.
Applying for a Federal Direct Student Loan
1. Have a valid FAFSA on file each year. Make certain to indicate that you are interested in student loans in Question 31.
2. Incoming students must apply for a Federal Direct Loan by filing a Master Promissory Note and completing Entrance Interview Counseling.
3. Clarion will automatically certify the maximum loan amount each year for full time students.
Dependent Students with a PLUS denial on file, and independent* students |
|||
|
College Credits Earned |
Base Amount subsidized or unsubsidized |
Additional Unsubsided |
Total |
|
0-29 |
$3,500 |
$6,000 |
$9,500 |
|
30-59 |
$4,500 |
$6,000 |
$10,500 |
|
60-graduation |
$5,500 |
$7,000 |
$12,500 |
|
Preparatory/Graduate |
$5,500 |
$7,000 |
$12,500 |
|
Teacher Certification |
$5,500 |
$7,000 |
$12,500 |
|
Graduate students |
$8,500 |
$12,000 |
$20,500 |
*Independent according to the federal government’s definition, relative to financial aid. Dependent students whose parents have been denied a PLUS loan may also borrow this amount.
These amounts are for the academic year, or two semesters. Students who enroll in only one semester, or who are between half-time (6 credits per semester) and full-time (12 or more credits per semester) may not be able to borrow the full amount.
The maximum that can be borrowed through the Federal Direct Loan program for undergraduate study for a dependent student is $31,000; however, only $23,000 can be subsidized. The total amount independent undergraduate students and undergraduate students with PLUS denials can borrow is $57,500; however, only $23,000 can be subsidized.
Federal Graduate PLUS Loan
The Federal Graduate PLUS Loan allows graduate students to borrow up to the cost of attendance if additional funds are needed after receiving the annual limit on Federal Direct Student Loans. Apply here for a Graduate PLUS loan.
Federal Parent PLUS Loan Program
Parents may borrow for their child’s education through the federal Parent Loan for Undergraduate Students (PLUS) program. They may borrow up to the entire cost of attendance (tuition, fees, room, meals, books, transportation, and personal expenses) minus any other aid that their son or daughter is receiving. PLUS loans are not based on financial need, but they are based on the credit-worthiness of the borrower/s. They have an interest rate that it adjusted every year, but won’t exceed 9%. As of July 1, 2008, parents approved for PLUS loans do not have to begin repayment of those loans until their student has graduated from college. Please apply for the PLUS loan after July 15th. Our computerized system will not "pick up" loans submitted before this date. Apply for the PLUS Loan here.
If the parents are denied a PLUS loan...
Federal regulations permit Clarion to let the student borrow up to the amounts indicated under the “independent student” column of the Federal Direct Loan borrowing chart if parents have been denied a PLUS loan.
Federal Perkins Loan
The Federal Perkins Loan is a federal loan for students with significant financial need. Its interest rate is set at 5% (subsidized while the student is in college). In addition to having a current FAFSA on file, students must submit a Perkins Loan application to the Office of Financial Aid. The maximum a student can borrow is usually $2000 per year. Perkins Loans are certified on a first-come, first-served basis.
Clarion University Revolving Loan Fund
This loan fund, for educational purposes only, is available to full-time undergraduate students in good standing. Loans may be granted to a maximum of $300. The loans are interest-free for 60 days. Thereafter, a $25 late fee is imposed. Application forms are available in the Office of Financial Aid.
