Federal Perkins Loan Program
The Federal Perkins Loan is a need-based loan with a fixed interest rate (5%). It is offered to full time students with high financial need, and generally awarded to Freshmen in the traditional undergraduate program. George Fox University generally limits the annual award level of Perkins loans to $1000. Repayment of the Perkins loan begins 9 months after the student graduates or ceases to be enrolled at least 1/2 time. Funding for the Federal Perkins Loan program is limited. Students who borrow from the Federal Perkins Loan program are borrowing the funds from George Fox University.
Stafford Loan Program
The Federal Direct Stafford Loan is a loan that students borrow from the federal government. A Subsidized Stafford Loan is a need based loan where interest is paid by the government while the student is enrolled at least half time. If a student does not demonstrate “need” via the FAFSA equation, the loan will be offered all or in part as an unsubsidized Stafford loan whereby interest accrues at the point of disbursement while the student is in school. Interest rates are fixed (see below), and there is currently a 1.07% origination fee that is deducted from the funds prior to receipt at the university. Additional information is available online at www.studentloans.gov.
The table below shows the interest rates for Subsidized Stafford Loans from July 1, 2008 through June 30, 2013. The interest rate for the Subsidized Stafford Loan before July 1, 2008 was 6.8%.
|July 1, 2010 to June 30, 2011||4.5%|
|July 1, 2011 to June 30, 2013||3.4%|
|July 1, 2013 to June 30, 2014||3.86%|
|July 1, 2014 to June 30, 2015||4.66%|
For undergraduate students, the annual loan amounts are:
|Year in School||Max Subsidized or Unsubsidized||After July 1, 2008 Unsubsidized eligibility||Additional Unsubsidized
if PLUS loan is denied
Loans cannot exceed the cost of attendance less other financial aid.
|Maximum Total Debt from Stafford Loans When You Graduate (aggregate loan limits)|
|Dependent Students||$31,000—No more than $23,000 of this amount may be in subsidized loans.|
|Independent Undergraduate Students (and Dependent Students whose parents cannot borrow from the PLUS loan program)||$57,500—No more than $23,000 of this amount may be in subsidized loans.|
|Graduate and Professional Degree Students||$138,500—No more than $65,500 of this amount may be in subsidized loans. The graduate debt limit includes Stafford Loans received for undergraduate study.|
Parent PLUS Loans
Parent PLUS loans are federal loans provided by the U.S. Department of Education that parents of dependent undergraduate students can use to help pay education expenses. To be eligible, parents must apply online at www.studentloans.gov and be approved. The maximum loan amount is the student’s cost of attendance minus other aid.
Federal Direct PLUS Loans disbursed on or after July 1, 2014 will have a fixed interest rate of 7.21%, and there is currently a 4.292% origination fee deducted from the funds prior to receipt at the university. Interest accrual begins at the point of disbursement.
The PLUS loan must be applied for each year the student or parent wishes to borrow. Additional information is available at www.studentloans.gov.
Alternative loans are private loans that are not part of the federal financial aid program. Interest rates and fees vary greatly and may depend on the borrower’s credit-worthiness. Generally, students are required to have a co-signer. Loan amounts cannot exceed the cost of attendance less other financial aid.
Try ELMSelect to view and compare lenders that have provided private loans to George Fox students in the past. While these resources will help you make an informed decision about the most appropriate loan for you, please note that you are not required to select a lender on this list.