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Tuition and Financial Aid

Educational Loans

There are several sources of loans to assist both students and parents with paying for college. The chart below will help you understand the basic differences between each type of loan. If you file the 2010-11 Free Application for Federal Student Aid, the student's eligibility for federal student loans will be indicated on his or her Financial Aid Notification letter. Furthermore, information about how to apply for these loans will be included with the student's original Financial Aid Notification letter.

Creditworthy parents of dependent students may choose to pay their out-of-pocket college expenses by borrowing a Federal Direct Parent Loan for Undergraduate Students (PLUS). Parents will begin to repay the Federal Direct PLUS during college, while loans for the student borrower offer deferred repayment after leaving college. For new students and repeat UE borrowers, an application for the Federal Direct PLUS is enclosed with the student's Financial Aid Notification letter. For returning UE students who are new borrowers, applications for the Federal Direct PLUS are available from the UE Office of Financial Aid upon request.

Some families choose to use educational loans through private lenders, instead of or in conjunction with federal loans. Many lenders offer educational loans. You will need to investigate these loans by contacting the lender.

Private Educational Loans

Because private loans are typically more expensive than federal loans, they should be considered only after you have exhausted your eligibility for financial aid from scholarships, grants, and federal loans. However, as a service we offer the following information to assist you if you elect to consider a private educational student loan.

Repayment

Lenders set their own repayment terms. In most cases, you will not begin to repay a private loan until you graduate or withdraw from college, but most lenders offer a six-month grace period before you enter the repayment phase. Some lenders will require that you make interest-only payments during college. Regardless of whether interest payments are required during college, interest always accrues on a private educational loan.

Interest Rate

Unlike the Stafford, PLUS, Perkins, and Federal Nursing Loan programs, where the interest rate is determined by the federal government, private lenders set the interest rate for their loans independently. Interest always accrues on private loans while you are in college. The rate is usually based on a common economic index (such as Prime Rate or LIBOR) and then adjusted at the lender's discretion. Therefore, the interest rate is usually variable with no cap.

Cosigner

A cosigner is someone who legally agrees to make payments on a loan should the student borrower fail to do so. Most private lenders will require a cosigner before approving a loan for a dependent, traditional-age college student. Each lender sets its own criteria to determine the creditworthiness of the applicant and cosigner. Most lenders will allow any creditworthy adult to serve as a cosigner, so students have the option of seeking help from other supportive adults, not just their parents.

Loan Limits

Most loans allow the student to borrow an amount sufficient to cover all of their college expenses. All colleges have an official cost of attendance, which is the sum of tuition, fees, room, board, books, and incidental expenses. Cost of attendance is an official figure which is the annual ceiling on the sum of a student's financial aid, including loans. The cost of attendance for UE students is listed on page 9 of our Financial Aid Award Guide.

Suggested Educational Lenders

The University of Evansville has a positive history with the following lenders.

Educational Loan Comparison Chart 2009-2010

Type of Loan Federal Direct Stafford Loan Federal Perkins Loan Federal Nursing Loan (Nursing majors only) for Federal Direct Parent Loan for Undergraduate Students Private Loans
Who is the borrower? Student Student Student Parent, stepparent, or legal guardian Student (adult cosigner usually required; does not have to be parent)
FAFSA required? Yes Yes Yes No No
Is eligibility based on financial need? Subsidized Stafford
Yes
Unsubsidized Stafford
No		 Yes Yes No No
Eligibility based on creditworthiness? No, all FAFSA filers are eligible No, college must offer loan; funds are limited No, college must offer loan; funds are limited Yes Yes, (cosigner's)
When does repayment begin? 6 months after leaving college or dropping below half-time enrollment 9 months after leaving college or dropping below half-time enrollment 9 months after leaving college, dropping below half-time enrollment, or leaving the nursing program During student's enrollment; 60 days after final annual disbursement Contact Lender
Does interest accrue during college? Subsidized Stafford
No
Unsubsidized Stafford
Yes		 No No Yes Yes
Interest rate for 2009-10 Subsidized Stafford
5.6%
Unsubsidized Stafford
6.8%		 5% fixed 5% fixed 7.9% fixed Variable Rates Contact Lender
Annual amount available Freshmen $3,500*
Sophomores $4,500*
Juniors $5,500*
Seniors $5,500*
Graduate $8,500*		 Up to $4,000
Rarely is this amount offered as funds are limited		 Freshmen/sophomores: up to $2,500
Juniors/seniors: up to $4,000
Funds are limited		 Cost of attendance minus all other financial aid Cost of attendance minus all other financial aid

* The Federal Direct Stafford Loan amounts listed above may be subsidized or unsubsidized, based on financial need. Up to an additional $2,000 unsubsidized loan is available for all undergraduate students ($12,000 for graduate students). Furthermore, additional unsubsidized amounts are available for independent students and for students whose parents are denied the creditworthy Federal Direct PLUS ($4,000 for freshmen and sophomores; $5,000 for juniors and seniors).