/Institutions/Laboure-College/json/2018-2019/Catalog-and-Student-Handbook-local.json

/Institutions/Laboure-College/json/2018-2019/Catalog-and-Student-Handbook.json

Catalog and Student Handbook 2018-2019 > Financial Aid Information > Labouré College Financial Aid > Loans

Loans

Federal Direct Stafford Loan—Subsidized and Unsubsidized

This is a low-interest government loan program. The Direct Stafford Loan is the basic undergraduate loan in the United States. The money comes from the federal government, and there is no credit check. The interest rate changes once per year, on July 1. The Department of Education may keep an origination fee that will be deducted from loan proceeds. The origination fee for Direct Stafford Loans disbursed between October 1, 2017 and October 1, 2018 is 1.066%. After October 1, 2017, the rate will be 1.066%. There are lifetime Direct Stafford Loan limits. For Independent students, the lifetime limit is $57,500 with no more than $23,000 in subsidized loans. For Dependent students, the lifetime limit is $31,000 with no more than $23,000 in subsidized loans. Repayment of loans begins six months after one ceases to be a half-time student. Normally, students have 10 years to repay Direct Stafford Loans, but there are various payment plans available that may allow borrowers to extend the 10-year period.

Subsidized means the government pays the interest while one is a half-time student and qualifies for a subsidized loan by having need. For the 2017-2018 award year, the interest rate will be a fixed 4.45%. By regulation, the annual amount a student may receive for Labouré’s degree programs is $3,500 as a first-year student, $4,500 as a second-year student, or $5,500 as a third-year student or higher.

Unsubsidized means the borrower is responsible for the interest. One may pay the interest while a student or may capitalize the interest and pay it when it is time to repay the loans. The 2017-2018 fixed interest rate is 4.45%. A student does not have to demonstrate financial need to qualify for an unsubsidized loan. Independent students may borrow annually $6,000 in unsubsidized loan as first- and second-year students. Combined with the subsidized amount, this is $9,500 in Direct Stafford Loans per year for first-year students and $10,500 in Direct Stafford Loans per year for second-year students. Third-year students and beyond can borrow up to $7,000 per year for a combined total of $12,500 in Stafford Loans per year. Dependent students may borrow annually $2,000 in unsubsidized loans. This means that first-year dependent students can borrow up to a total of $5,500, second-year students can borrow up to a total of $6,500, and third-year or higher students can borrow up to a total of $7,500 in Stafford Loans a year. Also, dependent students whose parents cannot obtain a Federal Direct PLUS Loan may borrow up to an additional $4,000.

Federal Direct PLUS Loan

This is a low-interest unsubsidized federal loan for the parent of a dependent student. For the 2017-2018 year the interest rate is a fixed 7.00%. The Department of Education may keep an origination fee that will be deducted from the loan proceeds. The origination fee for Direct PLUS Loans disbursed between October 1, 2017 and October 1, 2018 is 4.276%. There is a credit check on the borrower. The funds come from the federal government. If a dependent student’s parent cannot obtain a Direct PLUS loan, then the dependent student may borrow up to $4,000 in unsubsidized Stafford Loan. This is an excellent educational financing option for dependent students.

Nursing Student Loan

This is a fixed-rate (5%) loan through the Department of Health and Human Services specifically for nursing majors. Students have to demonstrate need and meet other eligibility criteria to qualify. Repayment begins after a nine-month grace period, and the monthly payment is $40 per month, perhaps more, depending on amount borrowed. There is limited funding for this loan.

Alternative Loan

This is known as a private loan. Students apply directly to financial institutions and have to be credit worthy or have a credit worthy co-signer. Private loans are often used by students who need assistance in addition to the Federal Stafford Loan, who require funds for living expenses, or who do not have access to the Federal Stafford Loan.