FEDERAL LOANS

The first of the Federal Family Education Loan Program options enable students to borrow from a bank, credit union or other participating lender. The subsidized amount that may be borrowed depends on the borrower's need and year in school. The interest rate for new loans is 6.8%, subject to change every July 1, but will not exceed 8.25% for new borrowers. The minimum monthly payment, which begins 6 months after the borrower ceases to be enrolled at least half-time, is $50 (subject to change). One-year loans are disbursed with one payment each semester.

The second of the Federal Family Education Loan Program options are available from private lenders to any students who meets the general eligibility criteria. Subject to annual limits, the UFSL may not exceed the cost of education minus financial aid. The interest rate for new loans, which does not exceed 8.25%, is adjusted each year. Interest accrues during in-school, grace and deferment periods, but it may be paid monthly or quarterly, or added to the principal amount of the loan. One-year loans are disbursed with one payment for each semester.

Although the money must be repaid, no payments need to be made and no interest is charged until nine months after the borrower ceases to be enrolled at least half-time. When interest begins to accrue it is at the rate of 5% per year (subject to change). A minimum monthly payment of $40 (subject to change) is required. Under special circumstances payment may be deferred for a time. In addition, the student must complete the Perkins Loan Questionnaire,return it to the Collections Office, and sign a Perkins Loan Promissory Note.