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:
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 approx. 1 percent loan fee on all Direct Subsidized Loans and Direct Unsubsidized Loans. The loan fee will be deducted from each loan by the Department of Education prior to disbursement to the college or univeristy.
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)
There are a multitude of ways that you can pay off your student loans. Check out your options.
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.
There are different steps and forms to fill out for the different loan programs.
Direct Stafford Loan for Students
The William D. Ford Federal Direct Loan (Direct Loan) Program is a program lending money directly to students. Students are required to complete a three step loan process to receive their Stafford Loan. These steps include entrance counseling, a Master Promissory Note Application, and a Direct Stafford Loan Worksheet.
The first step to obtaining a Direct Stafford Student Loan is getting advice about borrowing (loan counseling).
1. Student Loan Entrance Counseling
Second Step to a Direct Stafford Student Loan
2. Master Promissory Note
Third Step to a Direct Stafford Student Loan
3. Direct Stafford Loan Worksheet DL Worksheet (fill out, sign, and return)
The Parent PLUS Loan is a loan program (not need based) allowing parents to borrow for a dependent undergraduate student. Repayment of principal and interest usually begins within 60 days of loan disbursement. The parent, however, may choose to have the payment deferred during their students enrollment of at least half time (6 credits per semester).
PLUS Loan Application for parents
The federal government requires that students who have graduated and received student loan funds must participate in loan exit counseling. The government also requires that borrowers who leave the college for any reason or drop below half time must participate in loan exit counseling.
Fortunately, at Ancilla College loan exit counseling is easy. At Ancilla College we have our exit counseling on the web. You can complete this requirement by choosing the below link:
Complete Student Loan Exit Counseling
For more information on loans or if you have questions, contact Ancilla’s Financial Aid Office.
For information on Alternative/Private loans click here.