Federal Loans

Direct Loan

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 rate
Amount qualifying for interest subsidy is limited and in some cases the entire amount will be unsubsidized

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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