Loan Options
Click here to view Eastern University's Student Lending Code of Conduct.
Quick Links
Federal Direct Parent PLUS Loan
Graduate Students- Additional Information
Federal Direct Stafford Loan
New for 2010-2011- Eastern University has gone Direct Lending!! Effective immediately, all Federal Loans will be processed through the Federal Direct Loan Program. This means that students can still borrow Federal Stafford Loans, but the funds are being loaned by the government. (See the "Apply for a Federal Direct Stafford Loan" section below).
The Federal Direct Stafford Loan Program offers low interest loans to students to help pay for their college education.
The student must:
- be fully accepted in a degree program (matriculated);
- be enrolled half-time each semester (6 credits a semester-Undergraduate, 4.5 credits a semester-Graduate);
- be a U.S. citizen or eligible non-citizen;
- have a valid Social Security Number;
- if a returning student, have made Satisfactory Academic Progress;
- not be in default on a prior Federal Stafford Loan, Federal Perkins Loan, or Federal Direct Stafford Loan;
- not owe money back on a federal student grant;
- file the current year’s Free Application for Federal Student Aid (FAFSA).
Apply for a Federal Direct Stafford Loan
- New for 2010-2011- All students interested in borrowing a Federal Direct Stafford Loan must complete the Stafford Master Promissory Note (MPN) and Entrance Counseling. Along with your completed FAFSA, the MPN and Entrance Counseling serve as the final two steps for the Stafford loan application process. You may complete both processes online at www.StudentLoans.gov. You will need your FAFSA PIN # to access the website (student's PIN #).
Types of Stafford Loans
Subsidized:
- based on need as determined by analysis of the FAFSA;
- payments on the principal are deferred while student borrower is enrolled at least half-time (6 credits-Undergraduate, 4.5 credits-Graduate);
- federal government pays interest while student is enrolled at least half-time (6 credits-Undergraduate, 4.5 credits-Graduate);
- interest rate varies, but will never exceed 8.25%.
Unsubsidized:
- not based on financial need,
- payments on the principal are deferred while the student borrower is enrolled at least half-time (6 credits-Undergraduate, 4.5 credits-Graduate);
- interest accrues while the student borrower is enrolled at least half-time (6 credits-Undergraduate, 4.5 credits-Graduate) this is called capitalization;
- student may choose to pay the interest as it becomes due - saves money in the long run,
- interest rate varies, but will never exceed 8.25%,
- dependent students whose parents are denied the Federal Direct Parent Loan for Undergraduate Students (PLUS), may borrow an ADDITIONAL UNSUBSIDIZED Stafford Loan up to $4,000 if the student has less that 55 credits and up to $5,000 if over 55 credits.
Teacher Certification Students
Students who have only enrolled in a TEACHER CERTIFICATION program are not considered to be enrolled in a graduate degree program for the purpose of receiving Title IV Financial Aid (which includes loans).
Students enrolled in a Elementary or Secondary Teacher Certification program should make special note that their loan eligibility will be determined as though they are a fifth-year undergraduate student eligible to receive a maximum Federal Direct Stafford Loan amount of $12,500 in combined Subsidized and Unsubsidized amounts. They are not eligible to receive a University Graduate Fellowship, Scholarship, or Assistantship.
Post-certification Master's Degree students may qualify for up to $20,500 in the Federal Direct Stafford Student Loan Program each financial aid year. Masters Degree candidates may also apply for consideration for an Eastern University Graduate Fellowship, Scholarship, or Assistantship.
Annual Borrowing Limits (Federal Direct Stafford Loan Only):
|
1st Year (0-24 credits) |
$3,500 Subsidized / $6,000 Unsubsidized** |
$9,500 Total |
|
2nd Year (25-54 credits) |
$4,500 Subsidized / $6,000 Unsubsidized** |
$10,500 Total |
|
3rd through 5th Year (55+ credits) |
$5,500 Subsidized / $7,000 Unsubsidized ** |
$12,500 Total |
|
Teacher Certification Only |
$5,500 Subsidized / $7,000 Unsubsidized ** |
$12,500 Total |
|
Graduate Students |
$8,500 Subsidized / $12,000 Unsubsidized ** |
$20,500 Total |
**Dependent Students must receive a Federal Direct Parent PLUS Loan denial before becoming eligible for the Additional Unsubsidized.
**Independent Students automatically become eligible for the Additional Unsubsidized.
Aggregate Loan Limits:
Undergraduate Students - maximum amount from Federal Direct Stafford loans you can borrow in your lifetime:
- Dependent = $31,500 (no more than $23,000 of which can be Subsidized)
- Independent = $57,500 (no more than $23,000 of which can be Subsidized)
Graduate and Professional Students - maximum amount from Federal Direct Stafford loans you can borrow in your lifetime:
- Maximum Subsidized & Unsubsidized Combined = $138,500 (no more than $65,500 of which can be in Subsidized)
Entrance/Exit Counseling
Entrance and Exit Counseling is required to participate in the Federal Direct Stafford Loan Program. Please click here for more information.
Deferments
Under certain conditions you can receive a deferment on your loan as long as your loan is not in default. This allows you to temporarily postpone payments. Students enrolled at least half-time (6 credits-Undergraduate, 4.5 credits-Graduate) per semester are eligible for an in-school deferment.
If your prior loan is a Direct Stafford Loan, you must contact the Direct Loan Servicing Center to request a deferment. (www.StudentLoans.gov or 1-800-848-0979)
If your loan is NOT a Direct Stafford Loan, then you must contact the lender or guaranty agency that holds your loan. (e.g. AES/PHEAA www.aessuccess.org or 1-800-692-7392)
You must continue making scheduled payments until you are notified that the deferment has been granted, otherwise your loan could enter into default.
Federal Perkins Loan
A Perkins Loan is a low interest (5%) loan for students with exceptional need as determined by filing the FAFSA. The University is the lender and awards the loans on the basis of this need and the availability of funds following Eastern University guidelines. Eastern normally awards these loans to first and second year undergraduate students as a supplement to the Federal Direct Stafford Loan.
Perkins Loan Eligibility Requirements:
Perkins Loan recipients must:
- file a FAFSA
- be fully accepted in a degree program (matriculated);
- be enrolled full-time (12 credits);
- be a U.S. citizen or eligible non-citizen.
Perkins Loan Program Procedures:
- First time borrowers must complete a Perkins Loan Promissory Note and Entrance Counseling. Details on how to complete the counseling online are sent to the student by the Office of Student Accounts during the summer. Contact Steve Gross, sgross@eastern.edu, for questions on the Perkins loan process.
- Disbursement of funds to the student’s billing account cannot occur until the Perkins Loan Promissory Note is signed.
- The Perkins Loan Exit Interview is required prior to graduation or ceasing to be enrolled at least half-time (6 credits).
Parent PLUS Loan (Federal Parent Loan for Undergraduate Students)
The Parent PLUS Loan is a non-need based Federal loan designed to enable a parent to borrow funds to pay the educational expenses for their dependent child. Depending on creditworthiness, parents can borrow the difference between the Cost of Attendance (COA) and the total financial aid award listed on the Financial Aid Award Letter.
Eligibility Requirements
The Parent must:
- be a citizen or eligible non-citizen;
- not be in default or owe a refund to any Student Financial Assistance Program.
The Student must:
- file a FAFSA;
- be a dependent undergraduate;
- be fully accepted in a degree program (matriculated);
- be enrolled for a minimum of at least six credits (half-time);
- be a U.S. citizen or eligible non-citizen;
- not be in default on a previous Stafford Loan, Federal Perkins Loan, or Federal Direct Stafford Loan.
Apply for a Federal Direct Parent PLUS Loan
- New for 2010-2011- You may complete the Parent PLUS Loan Application online at www.StudentLoans.gov.
Private Alternative Loans
A Private Alternative Loan is a non-federal education loan, through a private lender, typically in the student's name and requiring a cosigner. Approval and interest rates are based on the creditworthiness of the borrower and cosigner (if applicable). Each lender has different eligibility requirements, loan rates, terms and conditions.
Before applying for a Private Alternative Loan, remember to first exhaust all Federal & State Grant opportunities, as well as Federal Loans, such as the Federal Perkins and Federal Stafford Loan programs.
Also, please consider the differences between borrowing a Federal Parent PLUS Loan (for parents) and a Private Alternative Loan (for students). Click here.
Alternative Loans now require the borrower to complete a Self-Certification Form which asks the borrower to provide their total Cost of Attendance and total financial assistance for the period of enrollment covered by the loan. To find out your Cost of Attendance, please click here.
Eastern University has developed a Preferred Lender List to better assist students in selecting a lender. Below is a list of 7 lenders with whom Eastern University students have conducted business with in the past. These lenders have a history of excellent customer service in dealing with our students, parents, and Eastern staff, an online application process, convenient call center hours, an informative website, and a variety of borrower benefits. Also, our staff has conducted a rigorous review process of each of these lenders to ensure they meet our high standards.
(Remember, this list is only Eastern's suggested Private Alternative Loan lenders. You are not required to select a lender from this list. This list will be updated annually.)
|
The Citizens Bank TruFit Student LoanTM 1-800-708-6684 |
|
|
For Undergraduates and Graduates 1-800-762-1001 |
|
|
CitiAssist® Undergraduate and Graduate Loans 1-800-STUDENT |
|
|
Chase Select Private Student Loan 1-866-306-0868 |
|
|
Wells Fargo Collegiate® Loan for Undergraduate and Graduate 1-800-658-3567 |
|
|
Sallie Mae Smart Option Student Loan® 1-888-2-SALLIE |
|
|
StuFund Solutions Private Loan 1-877-788-4773 |
|
References:
U.S. Department of Education Guidance:
Dear Colleague Letters
2008-12-31 (GEN 08-12/FP-08-10) The Higher Education Opportunity Act
Federal Regulations:
34 CFR 682.212(h)
