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LOANS Shepherd University participates in the William D. Ford Federal Direct Loan Program which means your stafford loan will be with the federal government. Student loans, unlike grants and work-study, are borrowed money that must be repaid, with interest. Only borrow what you need! You must be enrolled in a minimum of six credit hours to be eligible for loan assistance. All loan disbursements are made based on your enrollment. For example, if you will be attending fall and spring terms, you would receive one disbursement in the fall and one in the spring. If you only plan to attend the fall term due to anticipated graduation in December, you would receive one disbursement. All first time borrowers must complete Entrance Counseling, as well as, a Master Promissory Note prior to disbursement of funds. You will need your Personal Identifcation Number (PIN) to complete both requirements. Entrance counseling ensures that you are aware of your rights and responsibilities as a borrower. After a brief tutorial, you are required to pass a quiz which will be forwarded to Shepherd University. You can also meet with a financial aid counselor to satisfy this requirement. When a student gets ready to graduate, drops below half time, or leaves school, the Department of Education requires you to complete Exit Counseling to ensure, once again, that you are aware of your rights and responsibilities as a borrower. By using your PIN, you can determine which repayment plan is best for you. You can also meet with a financial aid counselor to satisfy this requirement. Federal Direct Subsidized Loans If you have a subsidized loan, the federal government does not charge you interest while you're in school at least half time (6 hours), during your grace period, and during deferments (postponements of repayment.) You must show financial need by completing the FAFSA to receive this type of loan. Federal Direct Unsubsidized Loans The federal government charges you interest on these loans while you're in school, in your grace period, or in deferment. You can get this type of loan regardless of financial need; however, you must still complete the FAFSA. Annual Stafford Loan Limits
Aggregate Stafford Loan Limits
Federal Direct Parent Loan for Undergraduate Students (PLUS) Loans This loan is for parents of dependent students. Interest is charged during all periods. An applicant must be the biological or adoptive parent (or, in some cases, the stepparent) of the student for whom he/she is borrowing. Generally, a child is considered dependent if he or she is under 24 years of age, has no dependents, and is not married, a veteran, or a ward of the court. The applicant can not have an adverse credit history. A credit check will by done by the US Department of Education. Should the application be denied due to the credit check, the student will be eligible to borrow additional unsubsidized loan funds. The PLUS requires a separate application each year which can be obtained from the Office of Financial Aid or by downloading: 2008-2009 Direct Plus Loan Request Form Funds for this program are extremely limited. Students must have financial need as demonstrated by completion of the FAFSA by March 1. Students must be enrolled in at least 6 credit hours. Shepherd University is the holder of this loan; therefore, repayment will be made to the institution. The interest rate is 5%. Borrowers have to complete a master promissory note. Repayment begins 9 months after you graduate, drop below 6 credit hours, or leave school. Alternative Loans Alternative loans are private loans through a lending institution that are not part of the federal government programs. Alternative loans are more expensive than federal government loans and should only be used when all other options have been exhausted. Research all possibilities for scholarships, grants, work-study and federal loan programs before borrowing from an alternative loan program. Choose the loan that best suits your needs and remember to borrow only what you need!
Steps for processing an alternative loan:
Consolidation Loans There may be advantages to consolidating (combining) your federal student loans into one loan, starting with the convenience of making a single monthly payment. Consolidation generally extends the repayment period, resulting in a lower monthly payment. This may make it easier for you to repay your loans. You may pay more interest if you extend your repayment period through consolidation. Contact the Direct Loan Consolidation Center for more information about loan consolidation at 800-557-7392. TTY for the hearing-impaired: 800-557-7395. Students often receive consolidation offers through the mail and via telephone. To help determine whether or not consolidation is right for you, consolidation loan offers can be compared at Simple Tuition by answering a few questions. The comparison will provide a breakdown of monthly payments and total cost of the loan. NOTE for Spring 2008: Online Verifications are available now! Also available: check your loan deferment status online! RAIL offers enrollment verification for loan companies. This free self-service option is based on an agreement between Shepherd University and the National Student Loan Clearinghouse (NSLC), which already provides enrollment and degree verification for Shepherd University as well as for most colleges and universities nationwide. Log on to RAIL View and/or print your enrollment verification certificate.
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