The first step in applying for a loan is to fill out the FAFSA, the Free Application for Federal Student Aid. Your eligiblity for each of these loans will be determined by the information you provide on the FAFSA.
Please keep in mind that you need to complete Entrance Counseling before a loan is applied to your account. Also, you will need to omplete an Exit Counseling session when you graduate or leave Pitt-Bradford.
Federal Perkins Loans
These loans range from $1,800 to $2,000. These loans are awarded to eligible students with interest. You don't have to replay the loan until after you graduate. Before loan funds are credited to your account, you need to complete a Perkins Entrance Counseling/Master Promissory Note. When you graduate or leave Pitt-Bradford, you will need to complete a Perkins Exit Counseling.
Federal Stafford Loan
The Federal Stafford Student Loan program is the most widely used student loan program. There are two kinds of Stafford Loans -- subsidized and unsubsidized.
For the subsidized loan, the interest is paid by the federal government during in school, deferment and grace periods.
For the unsubsidized loan, you must pay the interest on the loan from the time you borrow the money until you have completely repaid the loan. You have two options to pay the interest: You can make monthly or quarterly interest payments while you are in school. Or, you can allow the interest to accumulate, which will then be added to the total amount of your loan.
How much can you borrow through the Federal Stafford Loan Program? (as of 7/01/2008) |
College Credits Earned | Base Amount Subsidized or Unsubsidized | Additional Unsubsidized | Total |
0-24 credits | $3,500 | $2,000 | $5,500 |
25 - 53 credits | $4,500 | $2,000 | $6,500 |
54 credits or more | $5,500 | $2,000 | $7,500 |
Dependent Students with a Federal PLUS Loan Denial and Independent Students (as of 7/01/2008) |
College Credits Earned | Base Amount Subsidized or Unsubsidized | Additional Unsubsidized | Total |
0-24 credits | $3,500 | $6,000 | $9,500 |
25-53 credits | $4,500 | $6,000 | $10,500 |
54 credits or more | $5,500 | $7,000 | $12,500 |
Teacher Certification | $5,500 | $7,000 | $12,500 |
Please keep in mind that your eligibility for these programs depends on the information you provide on the FAFSA, the program you are in and the number of creidts you have completed.
Generally, you will begin to pay your loans and interest six months after you graduate or you leave the university. However, you may defer paying the loan's principal if you maintain at least half-time enrollment.
Federal PLUS (Parent Loan for Undergraduate Students) Loan Program
These loans are available to the parents of dependent, undergraduate, degree-seeking students who are making satisfactory academic progress and enrolled on an at least half-time basis.
The amount of the annual loan may not be more than the remaining balance after you apply any other financial aid you're receiving.
If your parents were denied a Federal PLUS Loan, you may be eligible to receive an additional unsubsidized Federal Stafford Loan. However, you will need to submit to the Financial Aid Office a copy of the loan denial letter your parents received.
Please keep in mind that this special approval must be renewed annually if your parents continue to be ineligible for a Federal PLUS Loan.
Generally, in the past, you will begin repaying your loan -- both principal and interest -- 60 days after the second disbursement. However, as of July 1, 2008, if you are a parent approved for a PLUS Loan you can opt not to begin paying it back until your son or daughter has graduated from college.