Loans

There are several different types of Federal loans, which are summarized below.

 

Perkins Loan: This Federally subsidized loan will allow you to borrow up to the amount we suggest at a 5 percent interest rate. The interest on the loan is subsidized by the federal government while you are in school, and does not begin to accrue until you begin repayment nine months after you graduate or cease to be enrolled at least half time. The Perkins Loan is awarded as part of the aid package for eligible students. There is no separate application for this loan. This is a need-based loan and each college is limited with the amount of Perkins loans they can distribute. As a result, we encourage all students to apply for financial aid early.

 

Subsidized Stafford Loan: This Federally subsidized loan has a fixed interest rate. The interest on the loan is subsidized by the federal government while you are in school and does not begin to accrue until you begin repayment six months after you graduate or cease to be enrolled at least half time. When interest begins to accrue, it is at a rate of 6.8%. Goddard will process a loan from any Stafford lender.

 

Unsubsidized Stafford Loan: This loan is similar to the Subsidized Stafford Loan described above, except that the federal government does not subsidize the interest while you are in school. You may either pay it quarterly or let it accrue while you are in school.

 

PLUS Loans for Graduate Students: Graduate students are now eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate/Professional PLUS loans. These requirements include a determination that the applicant does not have an adverse credit history, repayment beginning on the date of the last disbursement of the loan, and a fixed interest rate of 8.5 percent. Applicants for these loans are required to complete the Free Application for Federal Student Aid (FAFSA). They also must have applied for their annual loan maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program before applying for a Graduate/Professional PLUS loan.

 

Non-Federal Loans: 

 

Private Loans: These loans should be considered only after federal loan opportunities have been exhausted.There are times however, when a student receives their award letter and realizes that despite the award, (which may be a combination of grants and federal loans), there is still a need to borrow additional funds. When this is the case, students often turn to the private loan market. These loans are typically more expensive than the federal loans and will often require a co-signer for dependent students. Most are credit based and typical of consumer loans.