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How
do I know whether I qualify for a Federal Stafford Loan?
What
is the difference between subsidized and unsubsidized
loans?
What
is the maximum amount I can borrow per academic year?
What
is the maximum amount I can borrow for my entire undergraduate
and graduate degree(s)?
Are loans available for students taking preparatory coursework necessary for entry into a baccalaureate or graduate program?
What
is the interest rate?
How
long after my loan application is approved will I receive
my loan disbursement?
I
have been denied a loan due to my previous loan(s) showing
in delinquent status. What can I do?
If
I plan to attend another school what should I do?
What
should I do if I decide to quit school?
What
do I need to do with the yellow card that I received
from College Assist?
I
just graduated. When do my monthly loan payments start
and how much will they be?
What
is a deferment, and how do I apply for one?
What
is a forbearance?
I
have come to the end of my forbearance or deferment
period and am still having difficulty making my monthly
payments. What can I do?
What
happens if I default?
What
is a Federal Parent PLUS loan?
What
is the interest rate for a Federal PLUS loan?
What is a Federal Graduate PLUS loan?
Can
a parent switch a PLUS loan into the student's name?
When
do monthly payments begin on my PLUS Loan?
How
much will my payments be?
Can
a PLUS loan be deferred?
What
is student loan consolidation?
Are
there advantages to consolidating my loans?
What
are the disadvantages of consolidation my loan?
What
about the interest rate?
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How do I know whether I qualify for a Federal Stafford Loan?
Undergraduate and graduate students who have been awarded loans through their college's
financial aid office can borrow from the Federal Family
Education Loan Program. To be considered for any need-based
and some non-need based types of financial aid you
MUST complete and submit the free application for
Federal Student Aid (FAFSA). The financial aid office
will receive your FASFA results and determine your
eligibility for both subsidized and unsubsidized Federal
Stafford Loans, as well as other types of financial
aid. Your school will then notify you of the types
of aid you are eligible to receive.
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What is the difference between subsidized and unsubsidized loans?
Subsidized and unsubsidized refers to the way that your interest
is assessed on your Stafford Loan. Subsidized Stafford
Loan -the federal government will pay your interest
while you are in school (enrolled at least half-time),
during your six-month grace period, and during authorized
periods of deferment. Unsubsidized Stafford Loan - you
are responsible for the accrued interest during in-school
and grace periods. You have the option to pay the unsubsidized
interest or defer these interest payments until repayment.
If you defer the interest it will be capitalized or
added to the principal amount of your loan.
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What is the maximum amount I can borrow per academic year?
The maximum amount you can borrow per academic year
varies depending on your dependency status and grade level.
Please refer to the charts below. For more information concerning loan limits for preparatory coursework please contact your school’s financial aid office.
Federal Stafford Loans for Undergraduate Dependent Students
(Whose Parents Have Not Been Denied a PLUS Loan)
|
| Grade Level |
Base
Amounts* |
Additional Unsubsidized |
Total Amount |
| Freshman |
$3,500 |
$2,000 |
$5,500 |
| Sophomore |
$4,500 |
$2,000 |
$6,500 |
| Junior & Senior |
$5,500 |
$2,000 |
$7,500 |
| Teacher Certification coursework |
$5,500 |
0 |
$5,500 |
|
*Maximum amount that may be subsidized.
Federal Stafford Loans for Undergraduate Independent Students
(and Dependent Students Whose Parents Have Been Denied a PLUS Loan)
|
| Grade Level |
Base
Amounts* |
Additional Unsubsidized |
Total Amount |
| Freshman |
$3,500 |
$6,000 |
$9,500 |
| Sophomore |
$4,500 |
$6,000 |
$10,500 |
| Junior & Senior |
$5,500 |
$7,000 |
$12,500 |
| Teacher Certification coursework |
$5,500 |
$7,000 |
$12,500 |
|
*Maximum amount that may be subsidized.
Federal Stafford Loans for Graduate Students
|
| Grade Level |
Base
Amounts* |
Additional
Unsubsidized** |
Total Amount |
| Each Year |
$8,500 |
$12,000 |
$20,500 |
|
*Maximum amount that may be subsidized.
** For certain health and medical professions
programs at the graduate level, students may
borrow more than these amounts.
A fee of up to 2% of the loan may be deducted from each loan disbursement. The federal government charges a 1% origination fee and a 1% default fee.
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What is the maximum amount I can borrow for my entire undergraduate and graduate degree(s)?
The maximum amount you can borrow for your entire
undergraduate and graduate degree(s) varies based
on both your degree level and dependency status.
Please refer to the charts below.
Federal Stafford Loans for Undergraduate Dependent Students
(Whose Parents Have Not Been Denied a PLUS Loan)
|
| Aggregate |
Base
Amounts* |
Additional Unsubsidized |
Total Amount |
| Maximum |
$23,000 |
$8,000 |
$31,000 |
|
Federal Stafford Loans for Undergraduate Independent Students
(and Dependent Students Whose Parents Have Been Denied a PLUS Loan)
|
| Aggregate |
Base
Amounts* |
Additional Unsubsidized |
Total Amount |
| Maximum |
$23,000 |
$34,500 |
$57,500 |
|
Federal Stafford Loans for Graduate Students
|
| Aggregate |
Base
Amounts* |
Additional
Unsubsidized** |
Total Amount** |
| Maximum |
$65,500 |
$73,000 |
$138,500 |
|
*Maximum amount that may be subsidized.
** For certain health and medical professions
programs at the graduate level, students may
borrow more than these amounts.
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Are loans available for students taking preparatory coursework necessary for entry into a baccalaureate or graduate program?
Please contact your school's financial aid office for information and assistance.
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What is the interest rate?
See Interest Rates chart.
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How long after my loan application is approved will I receive my loan disbursement?
Your school will determine the
dates that your loan can be disbursed to you. The
federal government sets specific rules that your school
must follow in determining your loan disbursement
schedule. The loan approval notice you receive from
College Assist will provide an estimated
disbursement schedule as well as your approved loan
amount, interest rate, loan guarantee and origination
fees, and loan maturity date. Before your school can
actually disburse your loan funds to you, they must
verify your loan eligibility.
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I have been denied a loan due to my previous loan(s) showing in delinquent status. What can I do?
The Default Aversion Department
at College Assist can assist you in
resolving your delinquent status. Please call Default
Aversion at (303) 305-3555, 1-800-777-5626, or RepayHelp@college-assist.com.
Once your delinquency has been resolved your denied
loan will be reconsidered.
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If I plan to attend another school what should I do?
You should notify your school of your intent to withdraw.
They will calculate your eligibility for a tuition refund
and cancel any loan funds for which you are no longer eligible.
You must also contact the "new" school to reapply for financial aid.
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What should I do if I decide to quit school?
You should notify your school of your decision to withdraw. Upon notification, your
school will calculate your eligibility for a tuition refund. Your school will also cancel any loan funds
for which you are no longer eligible due to your withdrawal.
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What do I need to do with the yellow card that I received from College Assist?
College Assist sends out yellow postcards to remind borrowers of their
repayment obligation based on enrollment information provided by your current school, college, or university.
The card gives you a contact number in the event that questions arise. If you are currently enrolled or
will be returning to school within the next 6 months, your school will update your new enrollment status
and you may disregard this card. If you are out of school and will not be returning for a period longer
than 6 months, please use the contact numbers provided on the postcard.
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I just graduated. When do my monthly loan payments start and how much will they be?
The holder of your loan will mail
you a repayment schedule, (which may be in the form
of a billing statement or coupon book), approximately
30 days before the end of your 6 month grace period.
This repayment schedule will indicate the amount of
your monthly payments and due dates. There are several
repayment options available to help you manage your
student loan and avoid default. You should contact
the holder of your loan for more specific information
about your repayment options.
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What is a deferment, and how do I apply for one?
A deferment is a period during
repayment in which the borrower, upon meeting certain
conditions, is not required to make payments of loan
principal. To apply, you must complete a deferment
request form. If you have questions about your eligibility
for a deferment, please call College Assist
Repayment Services Hotline at (303) 305-3355 or 1-800-777-5626.
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What is a forbearance?
A forbearance is a period during
which the borrower is permitted to temporarily cease
making monthly payments, or reduce the amount of the
payments. The borrower is liable for the interest
that accrues on the loan during the forbearance period.
Some forbearances are entitlements for eligible borrowers;
others are granted at the discretion of the lender.
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I have come to the end of my forbearance or deferment period and am still having difficulty making my monthly payments. What can I do?
You can reapply for another forbearance
or deferment. However, you are responsible for making
your scheduled monthly payments until the new forbearance/deferment
is approved. There are always options available to
help you avoid default. You may also want to discuss
the income-sensitive repayment plan or consolidation.
Keep in close contact with your lender/servicer regarding
your repayment situation.
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What happens if I default?
The consequences of defaulting on your student loan can be very serious.
Please refer to Default Solutions
for additional information.
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What is a Federal Parent PLUS loan?
The Federal PLUS Loan is part of the Federal Family Education Loan Program (FFELP).
It is designed to allow parents of undergraduate dependent students to borrow for their children's education.
Income and assets are not a factor. However, eligibility for the PLUS Loan is based on the parent's credit
history.
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What is the interest rate for a Federal PLUS loan?
See Interest
Rates chart.
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What is a Federal Graduate PLUS loan?
A Federal PLUS Loan is part of the Federal Family Education Loan Program (FFELP).
It is designed to allow graduate students to borrow for their education to cover
costs not covered by their Stafford loans. Income and assets are not a factor.
However, eligibility for the PLUS Loan is based on the borrower’s credit history.
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Can a parent switch a PLUS loan into the student's name?
No. The parent is the legal party responsible for the PLUS loan debt.
You may make the payments on the PLUS loan on behalf of your parent,
but the legal responsibility for the loan repayment will remain with your parent.
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When do monthly payments begin on my PLUS Loan?
Repayment of Federal GradPLUS Loan begins within 60 days of the funds being
fully disbursed. For parent PLUS loans first disbursed on or after July 1, 2008, a parent borrower has the option to begin repayment within 60 days after the loan is fully disbursed or to postpone repayment until six months after the student for whom the loan was borrowed ceases to be enrolled on at least a half-time basis. There are no pre-payment penalties for Federal PLUS Loans. Principal payments can be made on the Federal PLUS Loan at any time to reduce the balance of the loan.
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How much will my payments be?
The lender of your loan will arrange a repayment schedule for you. The schedule will provide
for a minimum of $600 to be paid annually, with a maximum repayment period of 10 years.
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Can a PLUS loan be deferred?
Yes. Parent borrowers have the same deferment provisions available,
as do student borrowers of Stafford Loans. Contact your lender for details.
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What is student loan consolidation?
The student loan consolidation program allows you to combine all or some of your
student loans into one loan with one monthly payment.
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Are there advantages to consolidating my loans?
You will have one monthly payment instead of several. Depending on your
student loan indebtedness, you could have up to 30 years to repay your consolidated loan. You will also
have the choice of level, graduated or income sensitive repayment plans.
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What are the disadvantages of consolidating my loan?
If you extend the repayment period, you will pay more interest on the new loan.
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How is the interest rate determined on a Consolidation Loan?
The interest rate on consolidation loans is the weighted average of the loans being consolidated
rounded up to the nearest 1/8 of 1% or 8.25%, whichever is less.
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