Federal Stafford Student Loan Program
he Federal Stafford Student 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 Stafford 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 Stafford 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 Stafford Loan vary from year to year, but never exceed 8.25%.
Applying for a Federal Stafford 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 Stafford 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.
4. Students can save money on their Stafford Loans by choosing a Keystone Best Lender.
How Much Can a Student Borrow through the Stafford 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 |
$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 Stafford 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 Stafford 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. Apply for the PLUS Loan at aessuccess.org.
If the parents are denied a PLUS loan...
Parents who have been denied a PLUS loan are asked to send a copy of the denial letter to the Office of Financial Aid at Clarion University. Federal regulations permit Clarion to let the student borrow up to the amounts indicated under the "independent student" column of the Stafford 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 is $1000 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.
Private (Alternative) Education Loans
The Stafford, Perkins, and PLUS are federal loan programs. A number of banks also offer private (alternative) loans to students and parents. While the loans are not subject to federal financial aid regulations such as having a FAFSA on file, making satisfactory academic progress, completing federal verification, and having limits on the amount borrowed based on the number of credits earned, they are based on the credit-worthiness of the applicant and/or the co-signer.
Private (alternative loan) lenders offer a variety of loan products to undergraduate, graduate and professional school students; part-time students, continuing education students, and international students. In most cases, students can apply on-line. In some cases, the loans can be used to pay past due balances of education costs. There are many reputable lenders to consider if additional financing options are necessary. Students are cautioned to carefully compare loans and lenders by reviewing items such as interest rate, fees, repayment terms and customer service. You may also wish to visit the Pennsylvania Education Lenders Association website for additional information on securing a private (alternative) loan.
Finaid.org offers a thorough explanation of what to look for when shopping for loans. This link will take you to a listing of 10 student loan comparison sites.For example, one of the comparison sites listed, The Greentree Gazette, provides a site where you can anonymously compare private (alternative) loans based on interest rates, special offers, and other features to find the best loan for you and your particular circumstances.
Low interest loan through The Addison H. Gibson Foundation
The Addison H. Gibson Foundation provides low interest (2% until one year after graduation) loans to students from Western Pennsylvania. Applicants must be enrolled as full-time students in a baccalaureate or graduate degree program, with at least one full-time year of studies in the current degree program completed within the past four months. They must be in good academic standing, with a minimum G.P.A. of at least a 2.8, and must demonstrate financial need. For more details, visit http://www.gibson-fnd.org/Docs/Education_Loan.htm
