Loan Programs
Financing a college education is an important investment that requires many resources. The Financial Aid office offers assistance to students by outlining various financial resources available and guiding students through the application process. Office staff is available throughout the year to assist students with their needs.
Financial Aid consists of:
- Scholarships based on merit (academic, talent, special skill).
- Grants based on need, as determined by a student's aid application.
- Employment that allows students to work and earn money to help pay for school.
- Loan money that is often repaid after school at a low interest rate.
Federal Family Education Loan (FFEL) Program
Includes the Federal Stafford Loan (subsidized and unsubsidized) and the Federal PLUS (Parent Loan to Undergraduate Students). The source of funds for these programs is from banks, credit unions, and other similar types of lending institutions.
Lenders send the borrower’s loan funds directly to the Edgewood College Business office. Net loan proceed amounts are credited to the student’s account. If total financial aid exceeds charges, excess funds are returned to the student in the form of a refund. This refund is available as indicated in the semester Timetable.
First-time Federal Stafford borrowers must complete a Master Promissory Note (MPN) and participate in a loan entrance counseling session prior to receiving the first disbursement of their loan proceeds. This can be done in person or online at www.edgewood.edu/financial. All students are limited in the total amount they can borrow from the Federal Stafford Loan Program during their undergraduate and graduate academic careers.
Maximum annual amounts that may be borrowed beginning July 1, 2007 are:
| Annual Maximums | Freshman | Sophomore | Junior/ Senior | Graduate |
Credit Levels |
0-27 credits | 28-59 credits | 60+ credits | |
| Stafford Subsidized/ Unsubsidized for Dependent Students |
$3,500 | $4,500 | $5,500 | $8,500 |
| Additional Unsubsidized for Independent Students |
$4,000 | $4,000 | $5,000 | $12,000 |
Aggregate loan limits are:
| Aggregate Borrowing Amounts | ||
| Dependent | Independent | Graduate |
| $23,000 | $46,000 | $138,500 |
The graduate aggregate amount includes Stafford Loans received for undergraduate study.
Interest Rates
Annual interest rates are set each July 1 for subsidized and unsubsidized loans.
Origination Fees
Lenders are authorized to charge borrowers an up-front origination and guarantee fee of up to 4%. These fees are deducted from each disbursement of the student’s or parent’s loan.
Repayment
Repayment with interest begins six (6) months after graduation or termination of enrollment status of at least a half-time basis. Students may be allowed up to ten years to repay based upon the amount they have borrowed. Students are eligible for deferment of repayment under specified conditions.
Federal Plus Parent Loan
This loan is available for the parents of dependent undergraduate students. Parents may borrow the difference of the student’s cost of attendance less financial aid. Lenders require that parents meet “credit-worthiness” standards. Beginning July 1, 2006 the fixed annual rate is 8.5% for PLUS loans. The length of repayment is ten years. The minimum monthly repayment is $50, beginning 60 days after the second disbursement of funds is applied to the student’s account. In certain exceptional circumstances, payments may be postponed while the student is enrolled. Contact the lender for further details.
Graduate Plus Loan
This loan is available for graduate students. They may borrow the difference of their cost of attendance less financial aid. Lenders require that students meet “credit-worthiness” standards. Beginning July 1, 2006 the fixed annual rate is 8.5% for PLUS loans. The length of repayment is ten years. The minimum monthly repayment is $50, beginning 60 days after the second disbursement of funds is applied to the student’s account. In certain exceptional circumstances, payments may be postponed while the student is enrolled. Contact the lender for further details.
Alternative Student Loan Programs
Several private lenders offer alternative student loans. To obtain information regarding lenders, terms and amounts available, students should go to
http://www.edgewood.edu/financial/current/loans/alternative.htm
or contact the Financial Aid Office.
Louis Garttner Loans
Based on student need and administered by Edgewood College, these loans are provided to nursing majors for up to $1,000 per year at 5% interest.
Bing Crosby Loan
A limited fund providing loans of $500 or less for students who have financial need. Interest charged is 3.0%. Edgewood College administers this loan program.