Loan Options
Federal Stafford Loan | Federal Perkins Loan | Parent PLUS Loan | Alternative Loans | Graduate Students- Additional Information
Federal Stafford Loan
The Federal Family Educational Loan (FFEL) Program offers low interest loans to students to help pay for their college education. Stafford Loans are insured by a Guaranty Agency (e.g. Pennsylvania Higher Education Assistance Agency – PHEAA, New Jersey Higher Education Assistance Agency – NJHEAA, etc.), and are reinsured by the federal government.
Eligibility Requirements
The student must:
- be fully accepted in a degree program (matriculated);
- be enrolled half-time (6 credits-Undergraduate, 4.5 credits-Graduate)
- be a U.S. citizen or eligible non-citizen;
- have a valid Social Security Number;
- if a returning student, have made Satisfactory Academic Progress;
- not be in default on a prior Stafford Loan, Federal Perkins Loan, or Federal Direct Stafford Loan;
- not owe money back on a federal student grant;
- file the current year’s Free Application for Federal Student Aid (FAFSA).
Apply for a Stafford Loan
- After you file the FAFSA, if you are a first time Stafford loan borrower at Eastern University, you must complete the Stafford Master Promissory Note (MPN) and Entrance Counseling. Along with your completed FAFSA, the MPN and Entrance Counseling serve as the final two steps for the Stafford loan application process. You may complete these two steps by visiting www.aessuccess.org.
Types of Stafford Loans
Subsidized:
- based on need as determined by analysis of the FAFSA;
- payments on the principal are deferred while student borrower is enrolled at least half-time (6 credits-Undergraduate, 4.5 credits-Graduate);
- federal government pays interest while student is enrolled at least half-time (6 credits-Undergraduate, 4.5 credits-Graduate);
- interest rate varies, but will never exceed 8.25%.
Unsubsidized:
- not based on financial need,
- payments on the principal are deferred while the student borrower is enrolled at least half-time (6 credits-Undergraduate, 4.5 credits-Graduate);
- interest accrues while the student borrower is enrolled at least half-time (6 credits-Undergraduate, 4.5 credits-Graduate)this is called capitalization;
- student may choose to pay the interest as it becomes due - saves money in the long run,
- interest rate varies, but will never exceed 8.25%,
- dependent students whose parents are denied the Parent Loan for Undergraduate Students, may borrow an ADDITIONAL UNSUBSIDIZED Stafford Loan up to $4,000 if the student has less that 60 credits and up to $5,000 if over 60 credits.
Graduate Students
Teacher Certification Students
Students who have only enrolled in a TEACHER CERTIFICATION program are not considered to be enrolled in a graduate degree program for the purpose of receiving Title IV Financial Aid (which includes loans).
Students enrolled in a Elementary or Secondary Teacher Certification program should make special note that their loan eligibility will be determined as though they are a fifth-year student eligible to receive a maximum Stafford Loan amount of $12,500 in combined Subsidized and Unsubsidized amounts.
HOWEVER, if the student is enrolled in a Master’s Degree program in Education, the completion of which will result in the student receiving a teaching certificate in addition to a master’s degree, then the student is a graduate student and should answer the questions to reflect the Master’s Degree information.
IMPORTANT: The Federal Stafford Subsidized and Unsubsidized Loan is available to eligible Elementary and Secondary Teacher Certification students, before, but not after, the master’s degree is earned.
Elementary & Secondary Teacher Certification students may qualify for up to $12,500 in the Federal Stafford Student Loan Program each financial aid year. They are not eligible to receive a University Graduate Fellowship, Scholarship or Assistantship.
Post-certification Master's Degree students may qualify for up to $20,500 in the Federal Stafford Student Loan Program each financial aid year. Masters Degree candidates may also apply for consideration for an Eastern University Graduate Fellowship, Scholarship or Assistantship.
Post-masters students may not participate in the Federal Stafford Student Loan Program to complete certification requirements. In addition, they may not receive institutional aid for certification after a Master's Degree is received.
Annual Borrowing Limits (Federal Stafford Loan Only):
|
1st Year (0-27 credits)
|
$3,500 Subsidized / $4,000 Unsubsidized**
|
$7,500 Total
|
|
2nd Year (28-59 credits)
|
$4,500 Subsidized / $4,000 Unsubsidized**
|
$8,500 Total
|
|
3rd through 5th Year (60+ credits)
|
$5,500 Subsidized / $5,000 Unsubsidized **
|
$10,500 Total
|
|
Teacher Certification Only
|
$5,500 Subsidized / $7,000 Unsubsidized **
|
$12,500 Total
|
|
Graduate Students
|
$8,500 Subsidized / $12,000 Unsubsidized **
|
$20,500 Total
|
**Dependent Students must receive a Parent PLUS Loan denial before becoming eligible for the Additional Unsubsidized.
**Independent Students automatically become eligible for the Additional Unsubsidized.
Aggregate Loan Limits:
Undergraduate Students - Maximum total debt from Stafford loans when you graduate:
-
Dependent (Maximum Subsidized) = $23,000 ,
-
Independent (Maximum Sub & Unsub) = $46,000
Graduate Professional Students - Maximum total debt from Stafford loans when you graduate:
(*Only $65,500 of this amount may be in Subsidized Loans. This graduate debt limit includes Stafford Loans received for undergraduate study.)
Return to top
Stafford Loan Lenders
- College Loan Corporation- www.collegeloan.com/default.aspx
- Citibank- www.studentloan.com/schools/eastern
- M & T Bank- www.mandtatcollege.com
- EdAmerica- www.edamerica.net
- Wachovia- studentloans.wachovia.com/schools/easternuniversity/Stafford.htm
OR: www.selectyourlender.com/eastern
Entrance/Exit Counseling
Entrance and Exit Counseling is required to participate in the Federal Stafford Loan Program. Please click here for more information.
Deferments
Under certain conditions you can receive a deferment on your loan as long as your loan is not in default. This allows you to temporarily postpone payments. Students enrolled for at least 6 credits per semester are eligible for an in-school deferment.
If your prior loan is a Direct Stafford Loan, you must contact the Direct Loan Servicing Center to request a deferment. (www.dl.ed.gov or 1-800-848-0979)
If your loan is NOT a Direct Stafford Loan, then you must contact the lender or guaranty agency that holds your loan. (e.g. AES/PHEAA www.aessuccess.org or 1-800-692-7392)
You must continue making scheduled payments until you are notified that the deferment has been granted, otherwise your loan could enter into default.
Return to top
Federal Perkins Loan
A Perkins Loan is a low interest (5%) loan for students with exceptional need as determined by filing the FAFSA. The University is the lender and awards the loans on the basis of this need and the availability of funds following Eastern University guidelines. Eastern normally awards these loans to first and second year students as a supplement to the Federal Stafford Loan.
Perkins Loan Eligibility Requirements:
Perkins Loan recipients must:
- file a FAFSA
- be fully accepted in a degree program (matriculated);
- be enrolled full-time (12 credits);
- be a U.S. citizen or eligible non-citizen.
Perkins Loan Program Procedures:
- First time borrowers must complete a Perkins Loan Entrance Interview counseling session. Details on how to complete the counseling online are sent to the student by the Office of Student Accounts during the summer. Contact sao@eastern.edu for questions on the Perkins loan process.
- Students must sign a Perkins Loan Promissory Note (an agreement to repay the loan). Details on this process are provided to the students during the summer months by the Office of Student Accounts.
- Disbursement of funds to the student’s billing account cannot occur until the Perkins Loan Promissory Note is signed.
- The Perkins Loan Exit Interview is required prior to graduation or ceasing to be enrolled at least half-time (6 credits).
Return to top
Parent PLUS Loan (Federal Parent Loan for Undergraduate Students)
The Parent PLUS Loan is a non-need based Federal loan designed to enable a parent with a good credit history to borrow to pay the education expenses for their dependent child. Depending on creditworthiness, parents can borrow the difference between the Cost of Attendance (COA) and the total financial aid award listed on the Financial Aid Award Notice.
Eligibility Requirements
The Parent must:
- be a citizen or eligible non-citizen;
- not be in default or owe a refund to any Student Financial Assistance Program.
The Student must:
- file a FAFSA;
- be a dependent undergraduate;
- be fully accepted in a degree program (matriculated);
- be enrolled for a minimum of at least six credits (half-time);
- be a U.S. citizen or eligible non-citizen;
- not be in default on a previous Stafford Loan, Federal Perkins Loan, or Federal Direct Stafford Loan.
Pre-Approval for Eligibility
- To apply for a Parent PLUS Loan, go to www.aessuccess.org and click on the link to apply for a PLUS Loan.
- Parents should apply for a loan that will cover the costs for the entire academic year and is limited to an amount equal to the student's Cost of Attendance minus any other financial aid received by the student.
- Parent’s who have a prior PLUS Loan should borrow from the same lender.
- If the parent is not approved, the Office of Financial Aid will package the student with the additional amount of Unsubsidized Stafford Loan that the student is eligible to receive (up to $4,000 if the student has less that 60 credits and up to $5,000 if over 60 credits).
- The loan may not be certified by the University until the parent has submitted a completed PLUS Loan Promissory Note to AES/PHEAA.
PLUS Loans going through a Guarantor other than AES/PHEAA
Request the Parent PLUS Loan Promissory Note from the Guarantor or the Lender. Send the completed application to the Eastern University Office of Financial Aid and we will complete the school section. Parents who are still repaying a prior loan, should continue to borrow through the same lender.
Please Note: The PLUS interest rate varies, but will never exceed 9%. Repayment of both the principal and the interest usually begins within 60 days after the second disbursement is made to the institution and repayment may extend over a ten-year period. Minimum monthly payment is $50. Some lenders offer deferment options. In some cases the interest may also be deferred.
PLUS Loan Lenders
- College Loan Corporation- www.collegeloan.com/default.aspx
- EdAmerica- www.edamerica.net
- Citibank- www.studentloan.com/schools/eastern
- M & T Bank- www.mandtatcollege.com
- Wachovia- www.wachovia.com/education
OR: www.selectyourlender.com/eastern
Return to top
Alternative Loans and Additional Financing Options
The billed costs, less the applicable financial aid, are the student’s financial responsibility.
WHAT'S YOUR PLAN?
There are a number of ways for a family to cover the costs not met by the financial aid listed on the award notice.
1. Payment Plan- Payment plans are available through Student Accounts or online through FACTS. FACTS is a convenient budget plan offering no debt, interest, and no credit check. You can enroll in the FACTS payment plan online at www.eastern.edu/centers/sfs
2. PLUS Loan- This is a federal loan program in which parents may borrow up to the cost of education each year. Repayment begins immediately; however, Eastern University preferred lenders offer a variety of payment options. To apply visit www.aessuccess.org
3. ALTERNATIVE LOANS-Additional loans are available to students with creditworthy co-signors. You may apply online at www.selectyourlender.com/eastern or visit thelenders directly at the web addresses listed below.
- College Loan Corporation- www.collegeloan.com/apps/premierweb/default.aspx
- Education Finance Partners- www.EducationFinancePartners.com/Eastern
- Citibank- www.studentloan.com/schools/eastern
OR: www.selectyourlender.com/eastern
International Students please click here.
Return to top
Return to Office of Financial Aid Home
