Education Loans For Students And Parents

The cost of a college education ought to be viewed as a valuable investment in one’s future. It is necessary for most families to borrow to assist in paying for a college education. The terms of such loans include low interest rates that, in most cases, begin after graduation from college.

FEDERAL FAMILY EDUCATION LOAN PROGRAM
Ashland University participates in the Federal Family Education Loan Program (FFELP). Funds from the Stafford and Parent Loans listed below come directly from the lender to AU which, in turn, delivers the funds to the student.

        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 Amount: up to $3,500 for freshmen; $4,500 for sophomores; and $5,500 for juniors and seniors.

In additiion:

Dependent Students (those who are required to provide parental information on the FAFSA) may borrow additional Unsubsidized Stafford Loan Funds up to $2,000 per year

Independent Students (those who are not required to provide parental information on the FAFSA) may borrow additional Unsubsidized Stafford Loan funds: up to $4,000 for freshmen and sophomores; and $5,000 for juniors and seniors.

• Interest Rate: as of July 1,2006, interest is a fixed rate.

  Loans borrowed from July 1, 2006 through June 30, 2008, are fixed at 6.8%

  Undergraduate Subsidized Loans borrowed between July 1, 2008 and June 30, 2009 are fixed at 6.0% while Unsubsidized Loans remain 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, 2008 through June 30, 2009 is 3.605%.

• Loan Fees: reduce loan proceeds by 2.0% to determine amount that will credit to your account (i.e. if loan is $3,500, amount credited is $3,430).
• 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. complete a FAFSA prior to each year.
  2. all new borrowers must complete a Promissory Note.
  3. new borrowers must also complete Loan Entrance Counseling.

        FEDERAL PARENT LOAN

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

• Interest Rate: as of July 1, 2006, interest is fixed at 8.5%. (Loans borrowed for academic terms prior to that time have variable interest rates, capped at 9%; rate for July 1, 2008, through June 30, 2000, is 5.005%).

• Loan Fees: reduce loan proceeds by 4.0% to determine amount that will credit to student's account (i.e. if loan is $10,000, amount credited is $9,600).

• Approval: through the FFELP Lender for parent who does not have adverse credit history - parent will be notified whether or not loan is approved.

• Repayment: begins two months after the loan is fully disbursed. However, please note that payments on Federal Parent Loans disbursed July 1, 2008, or after, may be deferred while the student is enrolled at least half-time. Interest will accrue and may be paid or added to the principal when the child is no longer enrolled.

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• Application Process:
  1. Parent completes a Parent Loan Application.
  2. all new parents must complete a Promissory Note for Parent Loans for each child enrolled at AU.

FEDERAL PERKINS LOAN PROGRAM

The Federal Perkins Loan is a need-based loan program that offers freshmen or sophomores who demonstrate a high level of financial need up to $2,500 per year.

• Interest Rate: 5%; interest free while the student is enrolled at least halftime.
• Repayment: begins nine months after the students ceases to be enrolled halftime; minimum of $50/month; maximum repayment period is 10 years.  Additional information regarding repayment, deferment and cancellation options is available at www.studentaid.ed.gov.
• Application Process:
  1. complete a FAFSA prior to each year.
  2. accept loan each year at www.signmyloan.com.
  3. new borrowers complete loan counseling and a Master Promissory Note at www.signmyloan.com.

DWIGHT SCHAR LOAN

The Dwight Schar Loan is an institutional loan awarded to students, primarily freshmen and sophomores,with high need as available funds allow. 

• Interest Rate: interest free while enrolled full-time for first degree at AU; 7% interest charged when repayment begins.
• Repayment: begins 6 months after student ceases enrollment at AU; minimum of $50/month.
• Application Process:
  1. complete a FAFSA prior to each year.
  2. complete Promissory Note mailed to student by AU Student Accounts Office.

PRIVATE EDUCATION STUDENT LOANS

You may select a private education loan from the lender of you choice and apply directly to that lender for the loan.  Because there are many lenders available, AU has prepared a listing for your review of somelenders who provide private education loans. To access the listing, click on the link below:

Private Education Lender List