Financial Aid:

Loans

Loans from the Federal government can be subsidized or unsubsidized long-term, low-interest loans. Under direct lending, the federal government lends funds to eligible students and parents through the higher education institutions they attend.


Subsidized Federal Stafford Loans

These loans are available to full-time and part-time students who demonstrate financial need. The Federal government pays all of the interest on these loans until six months after the student graduates or stops attending college at least half time (6 credits). Borrowing levels are as follows:

  • Freshman (0-24 credits) $2,625 per year
  • Sophomore (25-60 credits) $3,500 per year
  • Junior (61-72 credits) $5,500 per year
  • Senior (73-over) $5,500

There is a $23,000 total borrowing limit for dependent undergraduate students and a $46,000 limit for independent undergraduate students, of which no more than $23,000 may be in subsidized loans.

After you have completed the FAFSA, the Peirce College Student Financial Services will review your application and send you an award notice and a Master Promissory Note. Sometimes the promissory note comes directly from the lending agency. You must complete the promissory note and supply all official tax returns to Student Financial Services. Read more about Federal Stafford Loans at www.pheaa.org.

Stafford loans are usually disbursed two times per year, typically once in the fall and once in the spring term. If your Stafford loan covers only one term, two disbursement dates are required within that term. If you are a first-time, first-year borrower, you will experience a 30 day delay in disbursement. Contact Student Financial Services for details.


Unsubsidized Federal Stafford Loans

Students who do not demonstrate financial need for the subsidized Stafford Loan may still borrow the same amounts under the unsubsidized Stafford Loan Program.

Unsubsidized loans are available to students who are not eligible for subsidized loans, and to independent students who wish to borrow more than their maximum subsidized amount. The student is responsible for paying all the interest on Unsubsidized Stafford Loans.

Freshmen and sophomores can borrow up to $4,000 per year. Juniors and seniors can borrow up to $5,000 per year. However, a student cannot borrow or receive any form of financial aid greater than his or her total estimated cost of attendance as determined by the college's financial aid administrators. Read more about unsubsidized Federal Stafford Loans at www.pheaa.org.


Federal PLUS Loan (Parent Loan for Undergraduate Students)

Credit-worthy parents of dependent undergraduate students can borrow money needed to cover the total educational cost of the academic program, minus other financial aid. These loans are not needs-based, but are based solely on credit ratings. Interest rates are low, there is no penalty for early repayments, and the interest may be tax deductible. Read more about Federal Plus loans at www.pheaa.org or at www.studentaid.gov.

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