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Subsidized
This is a long-term, low-interest loan borrowed directly from a bank, credit union or savings and loan association. Subsidized means the interest on the loan is paid by the government while you are in school and during the six-month grace period. The variable interest rate is capped at 8.25 percent.
Unsubsidized
This is a long-term, low-interest loan designed to provide students who do not qualify for the subsidized Stafford Loan and for independent students with additional needs for loan monies. Unsubsidized means you are responsible for the interest on the loan while in school; however, interest payments may be postponed. The variable interest rate is capped at 8.25 percent.
Annual loan limits for undergraduate students are:
Dependent |
Independent (subsidized and unsubsidized) |
$3,500 freshman |
$7,500 (0-30 credits) |
$4,500 sophomore |
$8,500 (31-60 credits) |
The total aggregate lifetime Stafford borrowing limit for dependent undergraduate students is $23,000 and $46,000 for independent undergraduates who borrow in both subsidized and unsubsidized programs.
More on Federal Stafford Loans.
This is a long-term, low interest (5 percent) loan. Currently, the demand for the Federal Perkins Loan exceeds the resources available. The Office of Student Financial Services automatically considers every eligible student for the Federal Perkins Loan and will award it to those with the greatest demonstrated financial need. Repayment of the loan is required and begins nine (9) months after graduation or after a student enrolls for less than six (6) credits per term. If a Federal Perkins Loan is part of your financial aid award, completion of an entrance interview, promissory note and statement of rights and responsibilities is required.
More on Perkins Loans
This loan is available to parents of dependent undergraduate students. The maximum borrowed is the cost of attendance minus any other financial aid. Although no income verification is required, the borrowing parent's credit history is evaluated.
More on Parent Plus Loans.
This loan is separate from the Federal Stafford Loan that is also taken out in the student's name. Interest rates and conditions of the loan are dependent upon the agency the student wishes to utilize.
More on Alternative Educational Loans
The best loan for graduate students who need additional funding. Borrow up to the total education cost less other student aid, low fixed interest rate, no required payments while in school at least half-time, no income requirement, flexible repayment, no prepayment penalty.
Campus Door: www.campusdoor.com
Citibank: www.studentloan.com
Key Bank USA: www.key.com/alternative
Loan information will be sent to the student upon receiving a final financial aid package.
Mercyhurst College also offers interest free payment plans, Tuition Management Systems, which can be found at www.afford.com.
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