Loans
FEDERAL SUBSIDIZED AND UNSUBSIDIZED STAFFORD LOANS
Most Gonzaga students borrow through either the subsidized or unsubsidized Federal Stafford Loan Program. These loans are borrowed from a bank or credit union as part of the Federal Family Education Loan Program (FFELP) please see CHOOSING A LENDER below. The subsidized Stafford Loan is a low-interest education loan for students who demonstrate financial need; the federal government pays the interest during certain times (for example, while the student is enrolled in school). Eligibility for the unsubsidized Stafford is not contingent upon financial need; thus, the borrower is responsible for interest that accrues on the loan while in school.
| Undergraduate Federal Stafford Loans | ||||||||||
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| Disbursement: The total amount of the Stafford Loan is disbursed in two increments within the academic year: one half at the beginning of the Fall term, and one half at the beginning of the Spring term. | ||||||||||
| INTEREST: The subsidized Stafford Loan is fixed at 6% beginning July 1, 2008. The unsubsidized Stafford Loan is fixed at 6.8%. | ||||||||||
| FEES: Up to 2% of the total amount of a Stafford Loan may be assessed in loan fees and is retained by the lending institution. | ||||||||||
| REPAYMENT: Stafford Loan repayment begins six months after the student graduates or ceases to be enrolled at least half-time. There will be several repayment plan options available to you. | ||||||||||
| AGGREGATE LIMIT: Dependent undergraduates are limited to $31,000 (no more than $23,000 may be in subsidized loans). Independent students are limited to $57,500 ($23,000 subsidized). |
All students borrowing a Federal Stafford Loan for the first time will receive a Master Promissory Note (MPN) from their lender at a later date. This must be completed for final approval of a Federal Stafford Loan. Once your lender has received the completed paperwork, they will deliver the loan according to Federal Regulations. All first-time borrowers must attend Entrance Counseling before funds can be disbursed. Group counseling sessions are held during Fall Orientation. If you miss the group sessions, you may complete the requirement on the web at: http://www.mappingyourfuture.org; select “complete Online Student Loan Counseling” and then “Stafford Entrance”; make sure to submit it after you have answered all of the questions.
For more information regarding FFELP loans, repayment, and borrower responsibilities and rights, please visit http://studentaid.ed.gov/PORTALSWebApp/students/english/studentloans.jsp.
FEDERAL PLUS LOAN PROGRAM
The Federal PLUS Loan Program allows parents of dependent students to borrow long-term, low-interest funds to help meet education expenses, please see CHOOSING A LENDER below. Parents must show an absence of negative credit history to qualify for this loan. The maximum PLUS loan amount is calculated by subtracting the total aid awarded to the student from the cost of attendance. For a Certification Request form for the PLUS loan, please select either a paper certification request or an on-line certification request form. If a parent is denied a PLUS loan, the student may be eligible for additional unsubsidized Stafford Loans. PLUS loans must be applied for each year; they are not automatically renewed.
| Interest Rate: Fixed at 8.5%. |
| Fees: Up to 4% of the total amount of a PLUS Loan is assessed in loan fees and is retained by the lending institution. |
| Repayment: Each PLUS loan is treated separately and repayment will begin within 60 days after all funds are disbursed each year. |
CHOOSING A LENDER
Selecting a FFELP lender is an important personal decision for any student. Although the basic interest rate and terms do not vary by lender, some lenders offer a variety of repayment incentives and services to families. For the most up to date information, we encourage you to visit each lender’s website.
Students and parents must select their own lender; the financial aid office is unable to select one for you. You may select any lender you wish to borrow your loans from, however, the lender you choose for your Stafford or PLUS loan, must participate as a FFELP lender. Please be aware that not all lenders participate in certain electronic processes designed to eliminate origination and disbursement delays. For this reason, selecting a lender from the lender options listed on www.elmselect.com is recommended.
Lenders have been selected for inclusion on www.elmselect.com based on their responses to a Request for Information as well as prior customer service. The Financial Aid Office has not received any type of incentive from these lenders in exchange for their inclusion on this site.
PRIVATE (ALTERNATIVE) LOANS
Numerous banks offer private educational loans to further assist students and families with college expenses. All private educational loan programs are based on creditworthiness. Most banks require a credit-worthy co-signer for approval of loans for undergraduate student applicants. Please go to www.elmselect.com to view a list of private loan lenders.
Your lender may offer a type of private educational loan through their website that does not require school certification. Borrowing this type of private educational loan may have a serious negative impact on your existing financial aid package. Please contact your financial aid office before borrowing one of these loans.
ALASKA SUPPLEMENTAL LOAN
This state-funded loan is only available to residents of Alaska. The state of Alaska requires that all students file a FAFSA and must first borrow a FFELP Stafford loan before being approved for the Alaska Supplemental Loan. Students may apply for this loan directly with the state of Alaska at www.state.ak.us/acpe or by telephone at (907) 465-2962.
FEDERAL PERKINS LOAN
The Federal Perkins Loan is a low-interest loan (fixed at 5%) available to undergraduate students who demonstrate high financial need. Dollars to fund this program come from former students who are currently repaying the loan. Gonzaga is the lender for this loan program.
To receive the loan you must be enrolled at least half-time in a degree-seeking program. If you are a first-time Perkins borrower you must attend a loan counseling session and sign a Master Promissory Note at that time. Perkins Loan recipients are not automatically re-awarded in subsequent years, but must qualify based on economic circumstances in each academic cycle.
Repayment begins after a nine month grace period. Your grace period begins after graduation or any period of less than half-time enrollment. For more information regarding deferment & forbearance, visit www.gonzaga.edu/perkinsloans.
The Federal Perkins Loan Program is unique because of its option to have loans forgiven for working in certain types of jobs after you leave school. These areas include teaching, nursing, medical technician, law enforcement, working with “at risk” low income children in certain circumstances. You may also qualify for partial cancellation for service in the Peace Corp or the U.S. Armed Services.
Depending on the availability of funds, an undergraduate student could borrow up to $20,000 ($8,000 maximum until two years of academic work are complete).
FEDERAL NURSING LOAN
The Nursing Student Loan program provides long-term, low-interest (5%) rate loans to full-time and half-time financially needy students pursuing a course of study leading to a degree in nursing. Gonzaga is the lender for these loan programs.
Normal repayment begins after a nine month grace period. Grace periods begin after graduation, if you drop out of all nursing programs, or any period of less than half-time enrollment.
Loan amounts vary depending on availability and the student’s year in school. Annual awards range from $2,000 to $4,000 with aggregate loan maximums at $13,000.
