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Loans

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 undergraduate Federal Direct Loans (subsidized and unsubsidized)  vary from year to year, but never exceed 8.25%,  The interest rate on federal direct unsubsidized loans for graduate students also varies each year, but will not exceed 9.5%.  Graduate students are only eligible for unsubsidized loans. 

Applying for a Federal Direct Loan

1. Have a valid FAFSA on file each year. 

2. Incoming students must apply for a Federal Direct Student Loan by filing a Master Promissory Note and completing Entrance Interview Counseling.  First time borrowers should be aware of time limitations on Federal Direct Subsidized Loan eligibility.

3. Clarion will automatically certify the maximum loan amount each year for full time students. 

How Much Can a Student Borrow through the Federal Direct Loan program?

College Credits Earned

Base Amount subsidized or unsubsidized

Additional Unsubsidized

Total

0-29

$3,500

$2,000

$5,500

30-59

$4,500

$2,000

$6,500

60-graduation

$5,500

$2,000

$7,500

 

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

only unsubsidized loans available

 

$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.  Please note, federal regulations require us to award students enrolled less than full time, but at least half time a "full time" maximum amount Direct Stafford Loan.  Part time students may want to reduce their student loan indebtedness and conserve their eligibility for future student loans, by reducing the amount of their loan award.

If you are enrolled part time and would like us to reduce your loan award before it is disbursed to your student account, please contact the Student Financial Services Office at 1-800-672-7171, option #2, or email us at stfinservice@clarion.edu, as soon as possible.

If you decide to return a portion of your loan funds after it has been disbursed to your account, you must return any loan refund money you received (up to the dollar amount you want us to return to your lender) within 30 days of disbursement before we can reduce and return the loan funds to your lender.

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. The interest rate on these loans varies each year, but will not exceed 10.5%.

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 10.5%.  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 this 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...

When a parent/s is 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.

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.

Low interest loan through The Addison H. Gibson Foundation

The Addison H. Gibson Foundation provides low interest (2%) loans to students from Western Pennsylvania.  For more details, visit http://www.gibson-fnd.org/Docs/Education_Loan.htm