Emory & Henry College: Federal Loans

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Federal Loans

Federal Perkins Loan
A Federal Perkins Loan is a low-interest (five percent) loan for both undergraduate and graduate students with extreme financial need. Emory & Henry College is the servicer of this loan based on funds being repaid by earlier Perkins recipients who attended Emory & Henry College.

Since these funds are campus-based, Emory & Henry College will limit eligibility based on availability of funds and level of need. Awards will be limited to a maximum of $2,000 annually with priority given to undergraduate Pell recipients. If additional funding remains, high need graduate students may also be considered. You will be directed at the appropriate time to complete your online promissory note and entrance counseling for your Perkins loan.

Subsidized Federal Stafford Loan
Based on financial need as demonstrated by the FAFSA, a subsidized Stafford loan will be part of a financial aid award. The federal government pays the interest on this loan while student is enrolled at least half-time in a degree program. Repayment of principal and interest begins following a single six-month grace period from the date the student ceases at least half-time enrollment, withdraws or completes a degree. Interest rate on loans disbursed between July 2006 and July 1, 2008 is fixed at 6.8%. Interest on loans disbursed for 2008-2009 will be 6.0%. The U. S. Congress has enacted legislation lowering the Stafford subsidized rate on funds disbursed each year between now and 2011. Loans disbursed after that point will have a fixed 6.8% interest rate unless there is further action by Congress.

Unsubsidized Federal Stafford Loan
An unsubsidized Stafford loan is not need based. You will be charged interest from the time the loan is disbursed until it is paid in full at the fixed rate of 6.8 percent. If you allow the interest to accrue (accumulate) while you are in school or during other periods of nonpayment, when you enter repayment it will be capitalized. In other words, the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount. Repayment begins no later than six months after dropping below half-time enrollment, withdrawal or graduation from the college.

Stafford Loan Limits
All undergraduate students can borrow a base amount of Stafford annually which may be subsidized or unsubsidized based on need as determined by the FAFSA.

$3,500 for freshman level of study (0 to 26 credits) for a full academic year;
$4,500 for sophomore level of study (27 to 56 credits) for a full academic year; and
$5,500 for each year of junior and senior level of study (57 to 120 credits) for a full academic year.

In addition, as of May 2008, all students regardless of dependency status may borrow up to $2,000 of unsubsidized Stafford loan each academic year. All independent students, or dependent students whose parents have been denied a parent PLUS loan by a lender, are eligible for an additional $4,000 each year for freshman or sophomore level of study and $5,000 each year for junior or senior level of study. Graduate level students may also qualify for Stafford loans for half-time enrollment in a graduate program.

Aggregate loan limits do apply. For more information about the Stafford loan program, refer to Student Aid on the Web under Federal Student Aid Programs from the U. S. Department of Education.

Note: All Stafford loans are subject for the 2009-2010 academic year to one-half percent origination and one percent default fee.

To complete the required Stafford Loan entrance counseling and master promissory note visit here.

If you choose to use a lender other than one on our list, you must contact the lender for a master promissory note. Entrance loan counseling is also required. If you use our electronic process, you will automatically be taken through that requirement. If you are using another lender, please go to Mapping Your Future at http://mappingyourfuture.org/OSLC/ to complete Stafford Loan Entrance Counseling.

Federal PLUS Loan
The Federal PLUS loan may be available to a parent to cover the expected family contribution as a supplement to other financial aid sources. The yearly limit on a PLUS Loan is equal to the student's cost of attendance less any other financial aid received.

PLUS loans have a fixed 8.5 percent interest rate and payments usually begin 60 days after loan is fully disbursed each year. While interest begins to accumulate at the time the first disbursement is made, parents have the option of making interest only payments or deferring all payments so long as the student is enrolled at least half-time for up to a period of four years. Parents must contact the lender directly to arrange that forbearance. Either of these choices will result in more interest being paid if only minimum payments are made during repayment. Standard repayment begins sixty days after the PLUS loan is disbursed in full for the academic year at approximately $50 per month for every $4,000 borrowed.

To complete the required Plus Loan master promissory note visit here.

Some graduate students may be eligible on a case by case basis for a Grad PLUS loan. Contact the CSA Office for more information.

Department of Education Toll-Free Phone Number for Borrowers
Borrowers whose Stafford or PLUS loan(s) was sold to the Department of Education to maintain liquidity in the FFEL Program, can reach the Department of Education Student Loan Servicing Center at 800.508.1378 between 8 a.m. and 11 p.m. (ET), Monday through Friday.

You can review the status of your loan online at www.nslds.ed.gov using your FAFSA PIN for access.