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Federal Perkins Loans and Stafford Loans
How do I apply for a Perkins or Stafford Loan? The same way you do for other federal student aidby completing the Free Application for Federal Student Aid (FAFSA). You don't need a separate loan application. But, you will need to sign a promissory note, a binding legal document that states you agree to repay your loan according to the terms of the note. Read this note carefully and save it.
Perkins Loans The Student Loan Comparison Chart shows the maximum Perkins Loan funds you can receive, depending on whether you're an undergraduate student or a graduate or professional student. But, the amount you can borrow might be less than the maximums given. Unlike for Stafford Loans, we provide each school participating in the Federal Perkins Loan program a certain amount of Perkins Loan funds each year. When all funds are used for that award year, no more awards can be made for that year. So, submit your Free Application for Federal Student Aid (FAFSA) as early as you can so you can be considered for these funds. Stafford Loans (Direct and FFEL) See the amounts in the chart here. You'll see that your loan limits depend on what year you are in school, whether you're a dependent student , and whether you receive "subsidized" or "unsubsidized" Stafford Loans. Subsidized Stafford Loan The amount of your subsidized loan cannot exceed your financial need. Unsubsidized
Stafford Loan To determine the amount of your unsubsidized loan, your school will use this equation:
For an unsubsidized loan, you're responsible for the interest from the time the loan is disbursed until it's paid in full. You can pay the interest as you go along. Or, you can allow the interest to accrue (accumulate)for example, while you're in schooland have the interest added to the principal amount of your loan later. This means the interest will be "capitalized." Note that if interest accumulates, the total amount you repay will be higher than if you paid the interest all along.
Maximum Annual Loan Limits for Subsidized and Unsubsidized Direct and FFEL (Federal) Stafford Loans
Other than interest, is there any other charge involved with these loans?
Perkins LoanYour school will either pay you directly (usually by check) or credit your account. Generally, you'll receive the loan in at least two payments during the academic year. Stafford LoanYour school will disburse your loan in at least two installments; no installment will be greater than half the amount of your loan. If you're a first-year undergraduate student and a first-time borrower, your first disbursement can't be made until 30 days after the first day of your enrollment period. Whatever your loan type, your loan money must first be used to pay for your tuition, fees, and room and board. If loan funds remain, you'll receive them by check or in cash, unless you give the school written permission to hold the funds until later in the enrollment period.
Can I cancel my student loan if I change my mind, even if I've signed the promissory note agreeing to the loan's terms? Yes. Your school must notify you in writing whenever it credits your account with your loan funds. You may cancel all or a portion of your loan if you inform your school within 14 days after the date your school sends you this notice, or by the first day of the payment period, whichever is later. (Your school can tell you the first day of your payment period.) If you receive your loan funds directly by check, you may refuse the funds by returning the check to the school. |