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12/03/2014 - 8:00am to 12/12/2014 - 8:30pm
01/03/2015 - 8:30am

LOAN INFORMATION AND LOAN APPLICATION DEADLINE DATES
To apply for Stafford Loans and/or Parent Plus Loans, you must have a completed Financial Aid file by the applicable Deadline date.

Summer Session I (Day of registration or before)
Summer Session II (Day of Registration or before)
Fall Semester  (Day of registration or before)
Spring Semester (Day of registration or before)

You must complete a Renewal or New Free Application for Federal Student Aid (FAFSA) each Academic year by:  March 15th.

Benedict College uses the William D. Ford Federal Direct Loan Program.
or you may choose the Lender of your Choice.

To receive these loans you must be enrolled in no less than 6 hours of undergraduate courses.  Complete the Master Promissory Note and Entrance Counseling online.

REMINDER:  You will need your Department of Education (DOE) Pin Number to complete your Master Promissory Note.  If you do not have or cannot remember your DOE Pin Number, you must obtain this first from the pin website at http://www.pin.ed.gov.

Entrance Counseling

Manage your educational expenses...

Before receiving a student loan, borrowers must complete an entrance counseling session.  The quick and easy interactive counseling session provides useful tips and tools to help you develop a budget for managing your educational expenses and helps you to understand your loan responsibilities.

Exit Counseling

Understand your rights and responsibilities...

Prior to graduating or leaving college, borrowers are required to complete an exit counseling session.  The online exit counseling session has been created to make sure that you understand your rights and responsibilities as a Direct Loan borrower.

The online entrance counseling session will take about 20-30 minutes to complete and the exit counseling will take about 30-40 minutes to complete.

Types of Federal Loans

SUBSIDIZED LOAN:  If you have financial need remaining after your EFC and any Grant funds, you can borrow to cover some or all of that remaining need.  This type of loan is a subsidized loan. The government will pay the interest while you're in school, for the first six months after you leave school, and when you qualify to have your payments deferred.  Depending on your financial need, you may borrow subsidized money for an amount up to the annual loan borrowing limit for your year in school. 

UNSUBSIDIZED LOAN:  You might also be able to borrow loan funds beyond your subsidized loan amount or even if you don't have demonstrated financial need. In that case, you'd receive an unsubsidized loan.  Your school will subtract the total amount of your other financial aid from your cost of attendance to determine whether you are eligible for the loan.  You are responsible for the interest from the time the loan is disbursed until it is paid in full.  You can choose to pay the interest or allow it to accumulate and be capitalized (that is added to the principal amount of your loan).

PLUS LOAN:  Parents who have an acceptable credit history can borrow a PLUS Loan to pay the education expenses of a child who is a dependent student enrolled at least half time in an eligible program at an eligible school.  The parent will fill out a PLUS Loan application (found on Benedict's Home Page) and give it to the Office of Financial Aid.  A credit check is required.  The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive.  If your cost of attendance is $6,000, for example, and you receive $4,000 in other financial aid, your parents can borrow up to $2,000.  The school receives the money in at least two installments.  If any loan money remains, your parents will receive the amount in a check, unless they authorize that it be released to you. 

FEDERAL PERKINS LOAN:  This loan is a low-interest (5 percent) loan for both undergraduate and graduate students with exceptional financial need.  Your school is your lender, and the loan is made with government funds.  You must repay this loan.  You'll receive the loan in at least two payments during the academic year and the check must be signed by the student in the Business Office.  If you're attending school at least half time, you have nine months after you graduate, leave school, or drop below half-time status before you must begin repayment. 

 What are the eligibility requirements for a Direct PLUS Loan?

  • You must be the biological or adoptive parent (or, in some cases, the stepparent) of the student for whom you are borrowing.
  • Your child must be a dependent student who is enrolled at least half-time at a school that participated in the Direct Loan Program.  Generally, your child is considered dependent if he or she is under 24, has no dependents, is not married, a veteran, a graduate or professional student, or a ward of the court.
  • You cannot have an adverse credit history (a credit check will be done).
  • In addition, you and your child must be U.S. citizens or eligible non-citizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid (FSA) programs.  You can find more information about these requirements in The Student Guide or by contacting the financial aid office at your child's school.

When do I have to begin repaying my loan?  You must begin repaying the Direct PLUS Loan 60 days after the full amount that you've borrowed for a school year has been disbursed.

Parent must begin making payments while your child is still in school.

How much time will I have to repay my loan, and how much will I have to pay each month?  Generally, you'll have from 10 to 30 years to repay your loan, depending on the repayment plan that you choose.  You may choose one of three repayment plans:

  • Standard Repayment Plan - Fixed monthly payment for up to 10 years.
  • Extended Repayment Plan - Fixed monthly payments for 12 to 30 years, depending on the total amount of your Direct Loan.
  • Graduated Repayment Plan - Payments that start off lower, and then gradually increase, usually every two years.  You'll repay your loan in full within 12 to 30 years, depending on the total amount of your Direct Loans.  You can change plans at any time.  There's no penalty if you make payments before they are due, or pay more than the amount due each month.

Can I ever postpone making loan payments?  Yes, under some conditions you may receive a deferment or forbearance that allows you to temporarily stop making payments.  For example, you may qualify for a deferment if you (not your child) return to school at least half-time, are unemployed, or are experiencing an economic hardship as defined in federal regulations.

If you don't quality for a deferment but are temporarily unable to make loan payments for reasons such as illness or financial hardship, you may be granted forbearance.

You will be charged interest on the Direct PLUS Loans during all periods of deferment and forbearance.

Can my loan ever be canceled or discharged?  You must repay your loan even if your child doesn't complete or can't find a job related to his or her program of study, or if you or your child are unhappy with the education you paid for with your loan.  However, we will cancel your loan if you have your loan discharged in bankruptcy, if you die or if the child for whom you borrowed dies, or if you become totally and permanently disabled (additional conditions apply).

We may cancel some or your entire loan if the school closed before your child completed the program.  Check the college's informational materials to see how refund policies apply to federal aid at that school.

Beginning May 2006, parent(s) and student(s) have the option to complete their Master Promissory Note on the web.  Parents and students will need a pin number to complete this process.  Apply for your pin number if you plan to apply for a Student/Plus Loan on line. The website is http://www.pin.ed.gov.

When you receive a Financial Aid Notification from the Office of Student Financial Aid, read it carefully.  It gives you instructions for anything that is required to be done for any of the monies.

REMINDER:

Loan Interest Rate Information

Interest rates for Stafford and Plus Loans In the Direct Loan and Federal Family Education Loan Programs
Effective July 1, 2009

Fixed Rates For Loans First Disbursed on or After July 1, 2006

 

Loan Type

 

Grade Level

First Disbursed Between July 1, 2008 and June 30, 2009

First Disbursed Between July 1, 2009 and June 30, 2010

Subsidized Loan

Undergraduate

6.00

5.60

Gradate

6.80

6.80

Unsubsidized Loan

Undergraduate

6.80

6.80

Graduate

6.80

6.80

PLUS Loans

Parent and Grad Student

7.90 for Direct Loans and 8.50 for FFEL

7.90 for Direct and 8.50 for FFEL

Variable Rates for Loans First Disbursed Between July 1, 1998 and June 30, 2006

These rates were calculated based upon statutory formulas and equal the bond equivalent rate of the 91-day Treasury bills auctioned on May 26, 2009, plus certain statutory percentage add-ons.  The 91-day Treasury bills were auctioned at 0.178 percent, rounded to 0.18 percent.

 

Loan Type

 

Loan Status

For the Period
July 1, 2009 to June 30, 2009

Fothe Period July 1, 2009 to June 30, 2010

 

Subsidized Loan

Repayment for Forbearance

4.21

2.48

In-school, Grace, or Deferment

3.61

1.88

 

Unsubsidized Loan

Repayment for Forbearance

4.21

2.48

In-school, Grace, or Deferment

3.61

1.88

PLUS Loans-
Parent and Grad Students

 

All Statuses

5.01

3.28

Notes:

  • Interest rates on Stafford and PLUS loans disbursed before July 1, 1998, are calculated using different statutory formulas, percentage add-ons, or both.
  • Generally, interest rates on Consolidation Loans are fixed rates calculated based on the weighted average of the loans being consolidated rounded up to the next higher 1/8 percent, not to exceed 8.25 percent.

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