Federal Stafford Loans
Students must be enrolled at least half time (6 credits per semester) to receive a loan for that semester.
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 federal government pays the interest on your loan while you are enrolled in college. Eligibility for this type of loan is determined after you complete 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. 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:
- $5,500 for dependent freshmen
- $6,500 for dependent sophomores
- $9,500 for independent freshmen
- $10,500 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 the FAFSA.
Aside from interest payments, there is a 1 percent loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans. The loan fee will be proportionately deducted from each loan disbursement.
Here are the interest rates for loans first disbursed between July 1, 2012, and June 30, 2013.
Direct Subsidized Loans 3.4%
Direct Unsubsidized Loans 6.8%
- If you already have federal student loans and would like to check the interest rate, servicer information, and other financial aid history, go to the National Student Loan Data System.
- Understanding interest rates and fees—Find out how interest is calculated.
- Information for military members—If you are a member of the military, you may be eligible for special interest benefits relating to your federal student loans.
Maximum Total Debt Limits
While there is no limit to the various grants and scholarships you can be awarded, there is a limit to how much you can borrow for your education.
Dependent Students (except students whose parents are unable to obtain PLUS Loans)
Independent Students (and dependent undergraduate students whose parents are unable to obtain PLUS Loans)
|First-Year Undergraduate||$5,500—No more than $3,500 of this amount may be in subsidized loans.||$9,500—No more than $3,500 of this amount may be in subsidized loans.|
|Second-Year Undergraduate||$6,500—No more than $4,500 of this amount may be in subsidized loans.||$10,500—No more than $4,500 of this amount may be in subsidized loans.|
|Maximum Total Debt from Subsidized and Unsubsidized Loans||$31,000—No more than $23,000 of this amount may be in subsidized loans.||$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans.|
Repayment Plans and Calculators
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. PLUS loans help pay for education expenses up to the cost of attendance minus all other financial assistance.
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