Student Loans

Information about the Student and Parent Loan Programs at Cottey

President Obama has signed legislation which makes the government the primary lender for student loans and ends the bank-based Federal Family Education Loan (FFEL) Program. Beginning with the 2010-11 academic year, all federal student loans will be through the William D. Ford Federal Direct Loan (Direct Loan) Program.

There are two types of Direct Loans for students: subsidized and unsubsidized.  The student must file a FAFSA in order for their eligibility to be determined. Subsidized loans are need-based and the Department of Education pays the interest while the student is enrolled at least half-time or in deferment.  Unsubsidized loans are not need-based and students are responsible for paying the interest that accrues on the loan from the time the loan is disbursed until it's paid in full.  The 2013-14 interest rate for both subsidized and unsubsidized loans is 3.86%.  There is an origination fee of 1.051% for both subsidized and unsubsidized loans. 

+ Previous Borrowers:

+ First-time Borrowers:

Annual student loan limits

First Year Total (maximum $3,500 subsidized)

  • Dependent Undergrad Students - $5,500 *
  • Independent Undergrad Students - $9,500 **

Second Year Total (maximum $4,500 subsidized)

  • Dependent Undergrad Students - $6,500 *
  • Independent Undergrad Students - $10,500 **

Third Year and Beyond (each year) (maximum $5,500 subsidized)

  • Dependent Undergrad Students - $7,500 *
  • Independent Undergrad Students - $12,500 **

* except students whose parents cannot borrow PLUS loans
** and dependent students whose parents cannot borrow PLUS loans

 

There is a limit to the total amount of Federal Direct Subsidized student loans that you may receive. Please visit http://studentaid.ed.gov/types/loans/subsidized-unsubsidized#is-there-a-time-limit for more information.


Direct PLUS Loans are made to parents of dependent undergraduate students to help pay for the cost of education. On the parent loan, parents may borrow up to the cost of attendance minus the amount of any other financial aid the student receives. To be eligible, a parent must be:

  1. The biological or adoptive parent of the dependent undergraduate student or the spouse of the student's parent and your income and assets were reported on the FAFSA.
  2. You and your child must be a U.S. citizen or national, a permanent resident of the U.S. or an otherwise eligible non-citizen.
  3. You and your child must not be in default on a federal education loan or owe an overpayment on a federal education grant and must not have been convicted of, or pled no contest or guilty to, a crime involving fraud in obtaining funds under the Act.
  4. You must not have an adverse credit history (unless you can document extenuating circumstances or obtain an endorser who does not have an adverse credit history).

The 2013-14 interest rate on a Direct PLUS loan is a fixed rate of 6.41%. There is an origination fee of 4.204% of the principal amount of each loan you receive.  If the parent of a dependent student is interested in applying for a Federal Direct PLUS Loan, the parent should go to https://studentloans.gov, sign in with their own FAFSA PIN, click on request a Direct PLUS Loan, select Parent PLUS, and complete the required information.

 

+ Alternative Loans:

+ Student Loan Code of Conduct:

+ National Student Loan Data System (NSLDS):

+ Loan Entrance and Exit Counseling:

Follow us on Twitter Breaking news, top stories, and announcements.         Like us on Facebook