FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP) FOR ASHLAND THEOLOGICAL SEMINARY STUDENTS

Students enrolled half-time in Master's/Doctoral Programs or the Diploma of Christian Studies may apply for a Federal Stafford Loan through Ashland University's participation in the Federal Family Education Loan Program (FFELP).  In addition, students whose Stafford Loan eligibility is less than their annual cost of attendance may apply for the Graduate PLUS Loan.  Terms and application process for both programs are listed below.

Federal Stafford Loan

• Subsidized or Unsubsidized: determined by the FAFSA. 

Subsidized Stafford Loan: need-based; the government pays the interest while the student is in school. 

Unsubsidized Stafford Loan: student is responsible for the interest while in school; interest can be paid quarterly or capitalized and added to the loan principal until after the borrower ceases to be enrolled at least halftime.

• Loan Amounts: up to $20,500 annually, but not to exceed the budget set for the

academic program, for students who are enrolled half-time (at least 4 credit hours)

• Interest Rate: as of July 1,2006, interest is fixed at 6.8%. (Loans borrowed for academic terms prior to that time have variable interest rates, capped at 8.25%; rate for July 1, 2007 through June 30, 2008, is 6.62%.)

• Repayment: begins six months after the student ceases to be enrolled at least halftime; several repayment options available; the standard plan provides up to 10 years for repayment. Further information regarding repayment options, loan deferment and loan forgiveness programs is available at www.studentaid.ed.gov .

• Application Process:

  1. File the FAFSA and an AU Loan Application each year and a separate AU Summer Session Application if you plan to attend during the summer.  The priority date for completion is April 30. Students completing the forms after that date may be required to pay up front for their classes at registration.

  2. All new Stafford Loan Borrowers at AU must complete a Stafford Promissory Note. 

  3. In addition, borrowers who do not have outstanding Stafford Loans must complete Loan Entrance Counseling.

Stafford Loan Limits for Seminary Students

	Subsidized	Total Subsidized & Unsubsidized
Annual Limits	$8,500	$20,500
Aggregate Limits	$65,000	$138,500

 

Note -The aggregate loan limit for all students includes any funds received for undergraduate study.

Federal Graduate PLUS Loan

The Graduate PLUS Loan allows seminary students to cover their education cost minus financial aid already awarded or to supplement their Federal Stafford Loan funding.  Eligibility for the loan is based on credit history; debt-to-income ratio is not considered. Students must have a Bachelor's Degree or at least 90 semester credit hours completed to apply.

 

• Loan Amounts: up to the cost of education minus other financial aid.

• Interest Rate: fixed at 8.5%.  Interest accrues while in school.

• Loan Fees:  4% origination fee; no repayment fee.

• Repayment:  automatic in-school deferment for students who qualify; up to a 9-month forbearance immediately following the in-school period for eligible borrowers who qualify; repayment term is 10 years.

• Application Process: 

1. Complete the FAFSA and an AU Loan Application each year.  Students must apply for their annual loan maximum eligibility under the Federal Stafford Loan Program before applying for a Graduate PLUS Loan.  However, students are not required to borrow Stafford Loan funds as a condition for receiving a Graduate PLUS Loan.
2. Complete an AU Graduate Plus Loan Application.
3. New Graduate PLUS borrowers at AU must complete a Graduate PLUS Promissory Note   and Loan Entrance Counseling.