Part of your financial aid package may include federal, alternative and/or university-sponsored loans.
Federal Direct Stafford Loans
- Direct Loan Basics for Students (PDF)
- Subsidized
- Federal Government pays interest while in school – must maintain at least half-time status
- 3.4% fixed interest rate for undergraduate students, 6.8% fixed interest rate for graduate students for 2012-2013
- Unsubsidized
- 6.8% fixed interest rate for undergraduate and graduate students for 2012-13
- Government does not pay the interest payments
- The student may choose to make interest payments while in college or allow them to accrue
- An Entrance Counseling is required for first time Stafford loan borrowers
- An Exit Counseling is required for all Stafford loan borrowers who either graduate, withdraw or are registered below half-time
- Repayment of loan principal plus interest begins six months after leaving school
Federal Perkins Loans
- Based on financial need and available funding
- 5% interest
- 9 month grace period
- No interest while in school – must be registered at least half-time
- An Entrance Interview is required for first time Perkins loan borrowers at Aurora University
- An Exit Interview is required for all Perkins loan borrowers who either graduate, withdraw or are registered below half-time
Federal Direct PLUS Loans
- 7.9% fixed interest rate for 2012-13
- Loans are available to parents who have a dependent child enrolled in college and graduate students.
- These loans are guaranteed by the federal government and are contingent upon credit approval.
- Individual eligibility is determined by subtracting any financial aid available for the academic year from the cost of attendance.
- Financial need is not a prerequisite.
Alternative Loan Program
- Helps pay educational expenses not covered by your financial aid package
- Recommended: Apply for federal, state and institutional aid before considering an alternative loan
- Credit check and/or a co-signer may be required
- Can cover expenses from a previous academic period (within 12 months)
- Be aware of the lender’s fees, interest rates, and repayment options
Annual Stafford Loan Limits for Undergraduate and Graduate Students
Effective for loans first disbursed on or after July 1, 2012
|
Dependent Students
|
Sub/
Unsub |
Additional Unsubsidized
Loan Amount |
|
First-year
|
$3,500
|
$2,000
|
|
Second-year
|
$4,500
|
$2,000
|
|
Third-year and beyond
|
$5,500
|
$2,000
|
Independent Students
|
Sub/
Unsub |
Additional Unsubsidized Loan Amount
|
|
First-year
|
$3,500
|
$6,000
|
|
Second-year
|
$4,500
|
$6,000
|
|
Third-year and beyond
|
$5,500
|
$7,000
|
|
Graduate Students
|
|
$20,500
|
Annual Loan Limits for Preparatory Coursework and Teacher Certification
|
Dependent Students
|
Sub/
Unsub |
Additional Unsubsidized
|
|
Preparatory coursework
(for enrollment in an undergraduate program) |
$2,625
|
$0
|
|
Preparatory coursework
(for enrollment in a graduate or professional program) |
$5,500
|
$0
|
|
Teacher certification coursework
|
$5,500
|
$0
|
|
Independent Students
|
Sub/
Unsub |
Sub/Unsub
|
|
Preparatory coursework
(for enrollment in an undergraduate program) |
$2,625
|
$6,000
|
|
Preparatory coursework
(for enrollment in a graduate or professional program) |
$5,500
|
$7,000
|
|
Teacher certification coursework
|
$5,500
|
$7,000
|
Aggregate Loan Limits
|
Subsidized / Unsubsidized Aggregate
|
|
|
Dependent Students
|
$31,000
(maximum $23,000 subsidized) |
|
Independent Students
|
$57,500
(maximum $23,000 subsidized) |
|
Graduate and Professional Students
|
$138,500
(maximum $65,500 subsidized) |
