Federal Stafford Loans are low interest rate loans that all students can apply for, provided they have filed a FAFSA and meet the criteria to receive federal aid.
As with all loans, Stafford Loans must be repaid with interest. There are two types of Stafford Loans:
Subsidized and Unsubsidized . You may receive one or both types depending on your dependency and financial status. To receive the funds, you must be enrolled at least half-time.
The following table shows the maximum amounts you can borrow each year for both the Stafford Subsidized (STFL) and Unsubsidized (USFL) loans:
Annual Loan Limits
|
|
|
Dependent Undergraduates |
Base Amount
(STFL/USFL) |
|
Additional Unsubsized Loan Amounts
|
| 1st Year |
$3,500 |
|
$2,000
|
| 2nd Year |
$4,500 |
|
$2,000 |
| 3rd Year and beyond |
$5,500 |
|
$2,000 |
| Teacher Credential |
$5,500 |
|
$0 |
Independent Undergraduates |
|
|
|
| 1st Year |
$3,500 |
|
$6,000 |
| 2nd Year |
$4,500 |
|
$6,000 |
| 3rd Year and beyond |
$5,500 |
|
$7,000 |
| Teacher Credential |
$5,500 |
|
$7,000
|
Graduate/Professional |
|
|
|
| All Years of Study |
$8,500 |
$12,000
|
The following table shows the maximum lifetime totals that you can borrow for both the Stafford Subsidized (STFL) and Unsubsidized (USFL) loans:
Aggregate Loan Limits
Dependent Undergraduates* |
|
| STFL/USFL |
$31,000 |
| Total |
$31,000 |
Independent Undergraduates*† |
|
| STFL |
$28,500 |
| USFL |
$28,500 |
| Total |
$57,500 |
Graduate/Professional |
|
| STFL |
$65,500 |
| USFL |
$73,000 |
| Total |
$138,500 |
* Includes Teacher Credential students
† includes Dependent Undergraduate students whose parents are denied the PLUS loan |
Subsidized Stafford Loans
- Based on need
- Limits: Refer to the tables above. Please note: Teacher Credential students and Graduate students must renew eligibility every two consecutive semesters. Undergraduate aggregate loan limits apply for Teacher Credential students.
- Interest: None, while in school at least half-time and during a six-month grace period after leaving school. As of July 1, 2008, interest rates for the 2008-2009 academic year are fixed at 6.0%. Effective July 1, 2009, interest rates for the 2009-2010 academic year will be fixed at 5.6%.
- Fees: May range from 0% to 1.5% depending on the lender.
- Repayment: six-month grace period on payments of principal only, 10 yr. max.
Summary: On this loan, the federal government pays the interest while you are in school and during the six-month grace period after you graduate, leave school or drop below half-time enrollment.
Unsubsidized Stafford Loans
- Not based on need
- Limits: Same as subsidized Stafford Loan; combined subsidized and unsubsidized cannot exceed the Federal Stafford Loan annual limits noted above. Please note: Teacher Credential students and Graduate students must renew eligibility every two consecutive semesters. Undergraduate aggregate loan limits apply for Teacher Credential students.
- Interest: Interest rates are fixed at 6.8%.
- Fees: May range from 0% to 1.5% depending on the lender.
- Repayment: six-month grace period on payments of principal only; 10 yr. max.
Summary: On this loan, you are responsible for paying all the interest while in school and after graduating or dropping below half-time enrollment. You can allow the interest to accumulate while you are in school and during the grace period. If you do, the interest will be capitalized immediately at the time of repayment. The capitalized interest will be added to the principal balance. It is to your advantage to pay the interest while in college; you will pay less in the long run.
Additional Unsubsidized Stafford: If your parent is denied a Parent PLUS loan, you are eligible to apply for an additional unsubsidized loan. The limits are listed above. Please contact SFS to see if you are eligible to apply.
To Apply for Your Stafford Loan click here
(Parent Loan for Undergraduate Students) The Federal PLUS Loan is a credit-based loan for parents (
or step-parents ) of dependent undergraduate students. The PLUS Loan annual borrowing limit is equal to the student’s Cost of Attendance minus any other financial aid received. The annual minimum is $150 and a 3% loan origination fee and, depending on the lender, a 1% default fee is deducted from the gross amount at the time of guarantee. Interest rates are fixed at 8.5%. Interest begins to accrue on only the amount that is disbursed. Since repayment must begin within 60 days after the loan is fully disbursed, it may be to the parent's advantage to apply for the loan amount needed for a full academic year. For example, if a parent applies for a fall only PLUS loan, it is considered fully disbursed in the fall and repayment must begin within 60 days. Deferments may be available. When repayment begins, the parent (
or step-parent ) has up to 10 years to repay the loan. The loan cannot be transferred into the student’s name. Please contact the Student Financial Services Office about how much PLUS Loan is needed to cover your student’s institutional charges.
(Graduate PLUS Loan) The Federal Graduate PLUS Loan is a credit-based loan for students pursuing a graduate degree. You must apply for all of your Stafford eligibility before applying for a Graduate PLUS. The Graduate PLUS Loan annual borrowing limit is equal to the student’s Cost of Attendance minus any other financial aid received. The annual minimum is $150 and a 3% loan origination fee and, depending on the lender, a 1% default fee is deducted from the gross amount at the time of guarantee. Interest rates are fixed at 8.5%. Interest begins to accrue on the amount that is disbursed. Since repayment must begin within 60 days after the loan is fully disbursed, it may be to the parent's advantage to apply for the loan amount needed for a full academic year. For example, if a parent applies for a fall only PLUS loan, it is considered fully disbursed in the fall and repayment must begin within 60 days. Deferments may be available. When repayment begins, the student has up to 10 years to repay the loan. Please contact the Student Financial Services Office at your Regional Center before applying for a Graduate PLUS Loan.
To Apply for a Parent PLUS Loan or Graduate PLUS Loan click here
Alternative Loans are private loans funded through various lenders. These loans have higher interest rates and do not have the same terms and conditions as Federal loans. Interest rates are based on PRIME or LIBOR plus a percentage tier that may range from 0% to 12% depending on the borrower’s credit and, if required, co-signer’s credit. Therefore, these loans should be considered as a last resort and used only if all other institutional and federal aid has been exhausted.
Alternative Loans are in the student’s name and may require a co-signer if the student has not established his/her credit. Students should research different lenders since the criteria on an Alternative Loan can vary from lender to lender.
Note: PLNU does not regulate Alternative Loans, so the student is responsible for all aspects of his/her loan. To Apply for an Alternative Loan click here
A Federal Perkins Loan is a low-interest loan for Undergraduate students with exceptional financial need and who meet the Student Financial Aid Office’s Priority Packaging Deadline.
The interest rate on a Perkins Loan is fixed at 5%. Interest does not start accruing and repayment does not begin on a Perkins Loan until nine months after the student graduates or the student's enrolled unit level drops below half-time status.
Note: Perkins Loans are limited campus-based funds; not all students who meet the qualifications for a Perkins will receive the Loan. If you are awarded a Perkins Loan, it will appear on your award letter.
If you've been awarded a Perkins and would like to claim it, please select the following link:
Federal Perkins Loan Electronic Promissory Note PLNU is the lender for this loan, so repayment will be to the university or its servicer ECSI.
Caution: Perkin's Loans are considered Federal funds and therefore are subject to similar repayment guidelines as other federal loans. Non-repayment of a Perkin's Loan must be reported by PLNU to the federal government and will affect your credit score.
Note: When a student goes into repayment on either a Federal Perkins or a Federal Stafford Loan, he/she has up to 10 years to repay the loan.
A Federal Nursing Student Loan is a low-interest loan for Undergraduates pursuing a degree in Nursing who have exceptional financial need and meet the Student Financial Services Office’s Priority Packaging Deadline.
A student must be accepted and enrolled to PLNU’s Nursing Program in order to receive this loan. Pre-Nursing students are not eligible. PLNU currently awards a maximum of $1,400 to a student for an award year. If you are awarded a Nursing Loan, it will appear on your award letter. The interest rate on a Nursing Loan is fixed at 5%. Repayment on a Nursing Loan starts nine months after the student graduates, drops below half-time enrollment, or withdraws from school.
Note: funds are limited; not all students who meet the qualifications for a Nursing Loan will receive the Loan. PLNU is the lender for this loan, so repayment will be to the university or its servicer ECSI.
If you've been awarded a Nursing loan and would like to claim it, you must come into the SFS Office to sign your promissory note.
PLNU is the lender for this loan, so repayment will be to the university or its servicer ECSI.
Caution: Federal Nursing Loans are considered Federal funds and therefore are subject to similar repayment guidelines as other federal loans. Non-repayment of a Federal Nursing Loan must be reported by PLNU to the federal government and will affect your credit score.