QUICK REFERENCE TO STUDENT LOANS
A student must be enrolled at least half-time and be making satisfactory academic progress in order to receive the Federal Direct Student Loan or Federal Direct Parent Plus loan.
Choose loans carefully:
- Borrow only the amount you need
- Make a budget and stick to it
- Borrow from the Federal loan programs before considering private education loans
- If you do need to borrow a private loan, do your homework and pick the one that is best for you.
DIRECT STUDENT LOANS – These student loans are deferred until 6 months after graduation, withdrawing from college, or when the student drops below half-time. They are either subsidized or unsubsidized, depending on financial need.
- Subsidized - the government will pay the interest on this loan while the student is in school; for 2011-2012 academic year, the interest rate is 3.4% (Effective 7/1/2011)
- Unsubsidized – the interest will accrue on this loan while the student is in school; you may elect to make quarterly interest payments while in school, for 2011-2012 academic year, the interest rate is 6.8%
| YEAR IN COLLEGE |
DIRECT LOAN LIMITS
(dependent students) |
DIRECT LOAN LIMITS (independent students/dependent students whose parents were denied Plus loan) |
| Freshmen |
$5500 |
$9500 |
| Sophomores |
$6500 |
$10,500 |
| Juniors/Seniors |
$7500 |
$12,500 |
| Graduate Students |
|
$20,500 |
DIRECT PARENT PLUS - This is a credit based parent loan. Repayment can be deferred until after the student graduates or drops below half-time. You may elect to pay the interest while the student is in school. A parent must apply for this loan. The interest rate is 7.9%
HOW DO I APPLY? - In Direct Lending, students borrow directly from the U.S. Department of Education through their school. Direct Loan Subsidized, Unsubsidized and Parent (PLUS) loans are applied for at the following website: www.studentloans.gov . Please apply for your student/parent loans online and e-sign your master promissory note. This ensures that your loans can be processed as quickly as possible.
WHAT ELSE DO I NEED TO DO? – All new students must complete Master Promissory Note and Entrance Counseling on line at: www.studentloans.gov.
HOW ARE LOANS DISBURSED? – Shaw University will receive the funds after the add/drop period is over each semester. Those funds will be applied to your student account and any excess will be refunded.
PRIVATE/ALTERNATIVE – This is a student loan, usually needs a co-signer. Interest rates vary, depending on credit.