Educational Loans
There are several sources of loans to assist both students and parents with paying for college. The chart on the back side of this form will help you understand the basic differences between each type of loan. If you filed the 2011-12 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 is included with the student's original Financial Aid Notification letter.
Creditworthy parents of dependent students who have filed the FAFSA 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. Applications for the Federal Direct PLUS are available from the UE Office of Financial Aid upon request.
Borrowers may request more PLUS or private loan funds than is due to UE in order to have extra funds for educational expenses that arise throughout the year, such as books, supplies, and transportation. The maximum PLUS or private loan that borrowers may request for one year is deter- mined by subtracting the total aid (scholarships, grants, and student loans) received by the student from the official Cost of Attendance (COA) budget. Various COA budgets for UE students appear to the right.
Educational Loan Comparison Chart 2011-2012
| Type of Loan | Federal Direct Stafford Loan | Federal Perkins Loan | Federal Nursing Loan (Nursing majors only) | 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 | Yes | 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 2011-12 | Subsidized Stafford 3.4% 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).
Private (Alternative) Loans Based Upon Credit
These educational loans are available from private lenders and offer additional financial assistance if you have exhausted all other sources of funding for your education. You should use all grants, scholarships and federal loans for which you are eligible before considering any private loan. Private loans typically have variable and higher interest rates, higher fees, and less flexible repayment options than federal loans. Each private loan lender has different eligibility requirements, loan rates, repayments terms, and conditions. Many lenders require a cosigner and some may require payment of interest while you are in school. You may select any lender you wish for a private educational loan. For a list of private (alternative) education loan lenders and how to contact them, visit studentlendinganalytics.com.
All private loan lenders are required to provide to student borrowers three disclosure statements and a Self-Certification Form prior to the school being able to certify the loan. The student will be required to complete and return the Self-Certification Form to the lender.
Other types of disclosures the student will receive include:
- Application Disclosure
- Loan Approval Disclosure
- Final Disclosure (prior to disbursement)
If you plan to apply for a private loan, you will need to be timely and proactive in acknowledging and providing any information requested. Delays in acknowledgement of the above disclosures or in completion of the Self-Certification Form will delay disbursements.
2011-12 Costs of Attendance for Private Loan Self-Certification
The Cost of Attendance (COA) is the fall and spring total of tuition, fees, room, meals, books, personal, and transportation costs the University has built into your overall budget and is the maximum total financial aid you may have for this year.
Students applying for a private loan must complete a Self-Certification Form indicating the amount of the UE COA, the student's financial aid, and the difference between the two. Use the following figures for the required UE COA amount.
| Dependent Students | Cost |
|---|---|
| Living on/off campus | $42,200 |
| Living at home with parents | $35,400 |
| Music major, living on/off campus | $43,580 |
| Music major, living with parents | $36,780 |
| One semester at Harlaxton + One semester on/off campus | $44,900 |
| One semester at Harlaxton + One semester with parents | $41,500 |
| Independent Students | Cost |
| All Independent Students | $42,365 |
Note: See page 9 of Financial Aid Award Guide for Cost of Attendance for adult programs, including Bachelor of Science in global leadership, Bachelor of Science in organizational leadership, Master of Science in public service administration, and the Executive Master of Business Administration Program.
Questions about the Cost of Attendance can be answered by coming to the UE Office of Financial Aid, Room 116, Olmsted Hall or calling 488-2364, or e-mailing financialaid@evansville.edu.
