Loans

Loans

Federal Undergraduate Student Loans

Subsidized Stafford Loan

Award: Freshman undergraduate student annual maximum loan: $3,500; Sophomore undergraduate student annual maximum loan: $4,500; Junior/Senior/5th year undergraduate student annual maximum loan: $5,500. Effective July 1, 2008, students may receive up to an additional $2,000 in Unsubsidized Stafford Loans upon request. Undergraduate dependent student total aggregate maximum borrowing is $31,000 (maximum $23,000 Subsidized). Undergraduate independent student total aggregate maximum borrowing is $57,500 (maximum $23,000 subsidized).

Eligibility: Full and half-time students. FAFSA filing determines eligibility. Applicants must demonstrate financial need.

Renewal: Must reapply each new year with the FAFSA. Terms of Loan (See Stafford Loan Master Promissory Note for details): No in-school interest charges or principal payments. Interest and principal payments begin six months after graduation or enrollment of less than half-time. The interest rate of the Stafford Loan varies annually, but will never exceed 8.25%.

Unsubsidized Stafford Loan

Award: Unsubsidized Stafford Loan limits are calculated in combination with any amounts borrowed under the Subsidized Stafford Loan. Annual combined Stafford loan amounts cannot exceed the following limits: dependent undergraduates--same as Subsidized Stafford Loan limits; independent undergraduates--freshman $9,500, sophomore $10,500, Junior/Senior/5th year $12,500.

Eligibility: The Unsubsidized Stafford Loan does not require financial need; however, the student must file a FAFSA to first determine eligibility for the Subsidized Stafford Loan program. Students are charged interest while enrolled in school on the Unsubsidized Stafford Loan; however, students can elect to capitalize these in-school interest charges and defer them along with the principal until six months after graduation or school enrollment of less than half-time.

Renewal: Must reapply each new year with the new academic year’s FAFSA.

Federal Graduate Student Loans

Subsidized Stafford Loan -Graduate students are no longer eligible for subsidized Stafford loans for loans certified after July 1, 2012.

Award: Graduate student annual maximum loan: $8,500 per year.

Eligibility: Full and half-time students. FAFSA filing determines eligibility. Applicants must demonstrate financial need.

Renewal: Unsubsidized Stafford Loan

Award: Unsubsidized Stafford Loan limits are calculated in combination with any amounts borrowed under the Subsidized Stafford Loan. Annual combined Stafford loan amounts cannot exceed $20,500 per year, and maximum aggregate $138,500 (no more of which can be $65,500).

Eligibility: Full and half-time students. FAFSA filing determines eligibility.

Renewal: Must reapply each new year with the FAFSA.

Parent Loans for Undergraduate Student (PLUS)

Award: Up to the full cost of an Ave Maria University education minus other awarded scholarship/financial aid. The Parent Loan (PLUS) is not a need-based loan; however, Ave Maria University requires the filing of a FAFSA.

Eligibility: Parent(s) of dependent undergraduate students enrolled full-time or half-time. The PLUS borrower must have a good credit history and ability to repay. Lenders determine the eligibility of the parents through credit check.

Renewal: Must reapply each new year with PLUS Application/Promissory Note. Terms of Loan (See Parent Loan (PLUS) Application/Promissory Note for details): The interest rate of the PLUS varies annually, but will never exceed 9%. Generally, interest charges and principal payments begin within 60 days of loan receipt, but borrowers may apply for deferment of their payments of interest and principal.

****As Ave Maria University parents, borrowers will be allowed to defer/forbear the interest and payments of the Parent loan while their student is an Ave Maria University student attending the University at least half time.

Alternative Loan Program

The Alternative Loan Program is not funded by the federal government. Alternative Loans should only be considered as the last funding resource, since these loans carry higher interest rates and less attractive terms compared to the Federal Loan programs.

Other Alternative Financing Source

The federal AmeriCorps program provides full-time educational awards in return for work in community service. You can work before, during, or after your postsecondary education, and you can use the funds to pay current educational expenses or repay federal student loans. For more information on this program, call 1-800-942-2677 or write to:

The Corporation for National and Community Service

1201 New York Avenue, N.W.,

Washington, DC 20525.

Student Rights and Responsibilities regarding Financial Assistance

Current federal law requires each eligible institution participating in Title IV federal and state financial aid programs to provide consumer product information about student financial assistance and other institutional information.

The Student Has The Right:

• To know all the federal, state, and University student financial assistance programs available, including both must reapply each new year with the FAFSA.