aid - federal loans
FEDERAL PERKINS LOANS
Priority for the Perkins loan is given to students with greatest financial need. The Federal Perkins Loan Program is a campus-based program; therefore Carroll College funds are limited, and are awarded only to freshmen and sophomore students.
- Interest rate: Fixed 5%
- Nine-month grace period
- Deferment and cancellation provisions available
FEDERAL STAFFORD LOAN
Subsidized Stafford -- Must qualify for “need” based on your FAFSA filing.
Unsubsidized Stafford -- Need is not a consideration but a FAFSA must be filed
2008-2009 Annual Loan Limits for Federal Stafford loan (subsidized and unsubsidized)
- $3,500 (freshman standing)
- $4,500 (sophomore standing)
- $5,500 (junior & senior standing)
The aggregate borrowing limit for undergraduates is $23,000.
Interest Rate: The Subsidized Stafford loans carry a fixed rate of 6.0% for all loans disbursed after July 1, 2008.
Please Note: The College Cost Reduction and Access Act of 2007 cut the fixed interest rates on newly originated subsidized Stafford loans to 6.0% (2008-09), 5.6% (2009-10), 4.5% (2010-11) and 3.4% (2011-12), with a return to 6.8% in 2012-13.
The Unsubsidized Stafford Loans carry a fixed rate of 6.8% for all loans disbursed after July 1, 2006.
LOAN DISBURSEMENT
In order for Perkins and/or Stafford loans to be disbursed, you need to:
- Accept your Financial Aid Award from Carroll College.
- If you are a first-time borrower, you need to fill-out, sign, and return a Master Promissory Note (MPN).
- If you are a first-time borrower, you need to complete loan entrance counseling.
- If selected for verification, all paperwork must be submitted to the financial aid office and processed before disbursement.
NOTE: If you are a current borrower and using the same lender, you do not need to complete a Master Promissory Note or entrance counseling.
LENDER CHOICE
To review a listing of some Stafford Loan lenders, CLICK HERE. Students are free to borrow from any lender they choose. If you choose a lender not on the list contact the lender directly to determine your next steps and contact our office to provide us with the lender contact information.
Factors to consider when choosing a lender:
Weigh the back end benefits carefully. Interest rates are federally determined, so it is important to think about how the lender will treat you when it is time for repayment.
Do not be taken by dazzling marketing. Some lenders send out expensive marketing pieces, but this does not mean they are necessarily the best lender. In addition, that expensive marketing has to be paid for somehow.
Be wary of e-mail. Students sometime receive loan offers that seem too good to be true, and often are.
Consider your local lender/banker. Over the years, Carroll College has developed solid working relationships with many local lending institutions that specialize in helping students and parents understand their guaranteed student loans and the many repayment options.
Factors considered in the development of the Carroll College list of Federal Family Educational Loan Program (FFELP) Stafford Loan and Parent PLUS lenders:
- Borrower benefits
- Origination fees
- Opportunity for forbearance or postponement of payment
- Marketing practices
- Source and stability of capital used in providing loans
- Mergers and acquisitions in past five years
- Commitment to debt management and default aversion
- Reputation at the local, state, regional and national levels
- Default rates
- Mission statement
- Demonstrated security of borrow information
- Ease of application process
- Web-based application and services
- Proactive customer communication
- Timely and responsive processing
- Knowledgeable customer service representatives
- Loan consolidation services and options
QUESTIONS?
Please contact us at fao -is-at- carroll -dot- edu.