Federal Parental Loan to Undergraduate Students (PLUS)

• Available to credit worthy parents of dependent students
• Eligibility is limited to educational costs minus financial aid
• Repayment begins within 60 days of full disbursement.
• Interest rate for first time borrowers (a parent who borrows a PLUS Loan for their child for the first time after July 1, 2006) is fixed at 8.5%. For all other borrowers the variable interest rate remains in place capped at 9.0%. Currently (7/1/08 - 6/30/09) the rate is 5.01%.

Federal PLUS Loan for Graduate students

• Available to credit worthy graduate students
• Students must first apply for and receive maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program (see below)
• Eligibility is limited to educational costs minus financial aid (including Stafford Loans)
• Interest rate is fixed at 8.5%
• Repayment begins once the loan if fully disbursed

Federal Carl D. Perkins Loan

• Based on exceptional financial need
• Up to $4,000 per year; cumulative limit of $15,000 for undergraduate
• Must maintain satisfactory academic progress; in good standing
• FAFSA required annually
• Repayable nine months after graduation or termination of at least half-time study at 5% interest

Subsidized Federal Stafford Loan

• Undergraduate loan limits: Freshman - $3,500; Sophomore - $4,500; Junior and Senior - $5,500; Cumulative limit - $23,000
• Loans are need-based, but if it is determined that there is no need, a student can borrow Unsubsidized Stafford Loan. (See below).
• Graduate loan limits: $8,500 per year; Cumulative limit - $65,500
• FAFSA required annually
• Repayment of principle and interest beginning six months after ceasing to be enrolled at least half-time.
• The Federal government will pay the interest while you are a student.
• The interest rate for subsidized loans disbursed after July 1, 2008 is fixed at 6.0%. For loans disbursed between July 1, 2007 and June 30, 2008, the interest rate is fixed at 6.8%. For all other loans, the variable rate remains in place capped at 8.25%. Currently (7/1/08-6/30/09), for all students who are in repayment, the rate is 4.21%.
• Must maintain satisfactory academic progress.

Unsubsidized Federal Stafford Loan

• Undergraduate loan limits (when combined with Subsidized loan): Freshman - $5,500; Sophomore - 6,500; Junior and Senior - $9,500; Cumulative limit - $59,500 when combined with subsidized loan.
• Independent undergraduate loan limits (in addition to regular undergraduate loan limits): Freshman and Sophomore - $4,000; Junior and Senior - $5,000; Cumulative limit - $46,000 when combined with subsidized loan.
• Graduate loan limits (when combined with Subsidized loan): $20,500 per year; Cumulative limit - $138,500 when combined wtih subsidized loan.
• You pay the interest while a student with repayment of principal beginning 6 months after ceasing to be enrolled at least half time.
• Interest rate for first time borrowers (anyone who borrows a Stafford Loan for the first time after July 1, 2006) is fixed at 6.8%. For all other borrowers the variable interest rate remains in place capped at 8.25. For students who are in school, the current (7/1/08 - 6/30/09) rate is 3.61%. For students who are in repayment, the current (7/1/08 - 6/30/09) rate is 4.21% .
• Repayment of principle and interest beginning six months after ceasing to be enrolled at least half-time.
• FAFSA required annually
• Must maintain satisfactory academic progress

Private Educational Loans

• Credit based, non-federal loan offered by banks and other lenders.
• Usually limited to your educational costs minus financial aid.
• Deferral of principle and interest while attending school at least half-time. Interest not paid while in school is added (capitalized) to your loan balance.
  
• Variable interest rate and fees based on your credit and that of a co-borrower if applicable.
• Because approval is based on your credit, most students will need a credit worthy co-borrower.
• Repayment terms and options, including co-signer release, vary by lender.
• Because of the lower interest rates and better terms, students are strongly encouraged to first borrow the Federal Stafford Student Loan and parents the Federal PLUS Loan before considering a Private Educational Loan.

Anderson Guide to Alternative Loans - Provided by Student Lending Analytics (SLA), this guide provides you with a comprehensive and independent source of information to assist you in making an informed decision regarding alternative (private) loans. SLA, which provides research and advisory services, has no affiliation with student loan lenders.

For assistance in selected a lender, visit the Anderson University Preferred Lender List.