Loan Information

Federal Stafford Loans

Students must be enrolled at least half time (6 credits per semester) to receive a loan for that semester.

The basic provisions for loans offered by the preferred lenders are consistent with all federally insured education loans. In addition, the preferred lenders participate in an electronic application and fund transfer process. This participation provides a superior source of processing and delivery of funds.

The terms of the need based Subsidized Federal Stafford Loan Program requires that the student borrower repay, with interest, this source of financial assistance. This program is referred to as subsidized because the interest subsidy is paid by the federal government to the lender while the student is enrolled in school as well as during the six month grace period following enrollment. Eligibility for this loan type is determined after completion of the FAFSA.

The terms of the non-need based Unsubsidized Federal Stafford Loan Program requires that the student borrower repay, with interest, this source of financial assistance. This program is referred to as unsubsidized because the in-school interest is not paid by the federal government to the lender while the student is enrolled in school. Interest on Unsubsidized Stafford Loans begins to accrue after disbursement of the loan funds. The student, however, may choose to have the payment of the interest deferred during enrollment and later capitalized (added to principal) at the time repayment begins. Eligibility for this loan type is determined after completion of the FAFSA.

Annual borrowing limits for Ancilla College students currently: $3500 for dependent freshmen; $4500 for dependent sophomores; $7500 for independent freshmen; $8,500 for independent sophomores.

Dependency status is determined by completing the FAFSA. The laws governing the Federal Student Aid programs are based on the premise that the family is the first source of the student's support, and the law provides several criteria that decide if the student is considered independent of his/her parents for aid eligibility. In particular, a student reaching the age of 18 or 21 or living apart from parents does not affect the dependency status. If the student is considered a dependent of his parents, information on the income and assets of the parents must be included on the FAFSA. The questions to determine dependency are in step three of the FAFSA.

The Federal PLUS Loan

The Federal PLUS Loan provides a borrowing option for parents of dependent undergraduate students. Based upon the borrower's creditworthiness, a parent may borrow from this federally guaranteed, non need-based loan program.

Annual borrowing limits vary per student. Parents should contact the Office of Financial Aid with questions surrounding PLUS loan limits.