Federal Loans
Direct Loan
- Must file a FAFSA
- Must be enrolled for at least 6 credits per semester
- Available in two varieties depending upon level of need:
Subsidized - no interest or principle to pay while enrolled at least half-time
- 3.4% for the 11-12 academic year (undergraduate students)
- 6.8% for the 11-12 academic year (graduate students)Unsubsidized - interest accumulates while in school although payment can be postponed
- the cost of borrowing is less if you make quarterly payments
- 6.8% fixed interest rateAmount qualifying for interest subsidy is limited and in some cases the entire amount will be unsubsidized - Amounts
Year in School
Dependent Student
Independent Student
Freshmen
$5,500
$9,500
Sophomore
$6,500
$10,500
Junior or Senior
$7,500
$12,500
Grad Student
$20,500
- Repayment begins 6 months after enrolled less than half-time or graduated
Perkins Loan
- Students in traditional Geneva College undergraduate program only
- Student considered based upon FAFSA information
- Must have high financial need
- 5% fixed interest rate
- No principle or interest to pay while enrolled half-time or more
- Generally offered to freshmen and sophomores only
Priority to students enrolled full-time - Ranges from $100 to $2,000
- Limited funds available
- Repayment begins 9 months after enrolled less than half-time or graduated
Direct PLUS Loan
- Borrower is parent
- Can be discharged in the event of death or disability
- Parent must pass a credit check
If parent does not pass credit check, student can get additional unsubsidized Direct loan - Can borrow up to the cost of education less any other aid received
- 7.9% fixed interest rate
- Federally mandated 2.5% fee subtracted upon disbursement
- Repayment begins 60 days after loan is fully disbursed
Payment can be deferred while student is enrolled
Parent must contact Direct Loan Servicing at 800-848-0979 to request deferment. - To apply, log into www.studentloans.gov with the parent/borrower PIN number and personal information. The Financial Aid Office will be notified of the credit decision within 1-3 days.
- Be sure to compare the Direct PLUS Loan with the Private Student Loans to see which option best suites your situation and family.
Direct GRAD PLUS Loan
- Borrower is a student in a graduate program
- Can be discharged in the event of death or disability
- Student must pass a credit check
- Can borrow up to the cost of education less any other aid received
- 7.9% fixed interest rate
- Federally mandated 2.5% fee subtracted upon disbursement
- Automatic deferment for Grad PLUS borrower while enrolled
- Can be consolidated at fixed rate with other federal loans
- To apply, log info www.studentloans.gov with your PIN number and personal information. The Financial Aid Office will be notified of the credit decision within 1-3 days.
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