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 percent origination fee that is deducted from the funds prior to receipt at the university. Interest rates for the Federal Direct Stafford Loan Program for July 1, 2010 through June 30, 2011 is 4.5% for subsidized and 6.8% for unsubsidized loans. The interest rate from July 1, 2012 through June 30, 2013 will be 3.4% for subsidized loans with the unsubsidized remaining at 6.8%. 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, 2008 to June 30, 2009||6.0%|
|July 1, 2009 to June 30, 2010||5.6%|
|July 1, 2010 to June 30, 2011||4.5%|
|July 2, 2011 to June 30, 2013||3.4%|
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.|
The Federal Direct PLUS loan program is a loan for parents to use to help pay their student's educational expenses. Interest accrues on the PLUS loan from the time of disbursement to the university, and it is subject to credit approval. To access this loan the parent borrower needs go to www.studentloans.gov and submit a request. Loan limits for the PLUS loan are the full cost of attendance minus other aid. The Federal Direct PLUS Loan Program has an interest rate of 7.9%. Origination fees are 4%. The PLUS loan must be applied for each year the 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. We encourage students to contact their financial aid counselor if they are considering an alternative loan..