Educational Loan Borrowing

Transcription

1 Student Financial Services Educational Loan Borrowing New Student Orientation

2 Federal Direct Loan Application Free Application for Student Aid (FAFSA) yearly: Master Promissory Note (first-time borrower) Entrance Counseling (first-time borrower) Eligibility Matriculated (degree-seeking) students Enrolled at least half-time (6 credit hours) FAFSA filers

3 Federal Direct Subsidized Loan Borrower: Student Financial need (based on FAFSA): Yes Credit Check: None Interest: Does not accrue until after the student graduates Repayment: Begins six months after student graduates or drops below half-time enrollment (6 credit hours)

4 Federal Direct Unsubsidized Loan Borrower: Student Credit Check: None Financial need (based on FAFSA): No Interest: Begins to accrue after loan is disbursed. Students encouraged to pay interest while enrolled. Repayment: Begins six months after student graduates or drops below half-time enrollment (6 credit hours)

5 Federal Direct Student Loans Interest Rates and Origination Fees Loan Type Borrower Type Fixed Interest Rate (7/1/15-6/30/16) Origination Fee (Prior to 10/1/15) Origination Fee (10/1/15-9/30/16) Direct Subsidized Loan Direct Unsubsidized Loan Undergraduate 4.29% 1.073% 1.068% Undergraduate 4.29% 1.073% 1.068% Direct PLUS Loan Parents and Graduate 6.84% 4.292% 4.272%

6 Federal Direct Loan Limits (Dependents) Academic Level Maximum Federal Loan Eligibility (per year) Maximum Subsidized Loan based on need (per year) Freshman $5,500 $3,500 Sophomore $6,500 $4,500 Junior $7,500 $5,500 Senior $7,500 $5,500

7 Alternative Loans Alternative loans are offered through private lenders, or the federal government s parent loan (PLUS). We generally recommend you exhaust federal aid eligibility first. Borrower: Either student or parent (federal PLUS loan) Credit Check: Credit history and credit scores Interest Rate: Fixed or variable Alternative Lender Options: Parents can explore on their own or use our alternative lender information as a starting point. (Note: You are not required to use any lender listed.) Borrowing Limit: Educational budget less financial aid Application process is with each lender. Repayment options established with lender at time of application

8 Application Federal Direct PLUS Loan Free Application for Student Aid (FAFSA) yearly: Apply at Master Promissory Note (first-time borrower) Eligibility Parents of Matriculated (degree-seeking) students Students enrolled at least half-time (6 credit hours) No negative credit history FAFSA filers

9 Borrower: Parent Federal Direct PLUS Loan Credit Check: No negative credit Financial need (based on FAFSA): No Interest: Begins to accrue after loan is disbursed. Parents encouraged to pay interest and principal, if able, while student is enrolled. Repayment: Either immediate or six months after student graduates or drops below half-time enrollment (6 credit hours) Borrowing Limit: Educational budget less financial aid

10 Denied Parent PLUS Loan Options for parents denied Parent PLUS Obtain credit-worthy endorser for loan Do nothing: Student will receive an additional borrowing eligibility in the form of a Direct Unsubsidized Loan for the academic year. Academic Level Additional Unsubsidized Loan (per year) Freshman $4,000 Sophomore $4,000 Junior $5,000 Senior $5,000

11 Alternative Lender Options

12 Alternative Lender Options

13 Alternative Lender Options

14 New Jersey Class Loan Students who are residents of New Jersey may be interested in taking an alternative loan through NJ Class. Eligibility: NJ residents only NJ Class loan approved school Requires a FAFSA to be filed. Contact NJ Class Loan for additional information:

15 Questions After Today Online SFS Website: AskSFS: Phone In Person Student Services Building 30 Lovett Avenue, Newark, DE Office Hours: Monday-Friday 8:00am to 5:00pm