Federal Direct PLUS Loan
Federal Direct Grad PLUS Loan
Federal Carl D. Perkins Loan
Federal Direct Subsidized Loan
Federal Direct Unsubsidized Loan
Private Educational Loans

As Anderson University transitions to the William D. Ford Federal Direct Loan Program we have attempted to answer your questions. Read our Q and A on Direct Loans.

Federal Direct PLUS Loan

• 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 is fixed at 7.9%

Federal Direct Grad PLUS Loan

• Available to credit worthy graduate students
• Students must first apply for and receive maximum eligibility under the Federal Direct Loan Program (see below)
• Eligibility is limited to educational costs minus financial aid (including Stafford Loans)
• Interest rate is fixed at 7.9%
• Repayment begins once the loan if fully disbursed

Federal Carl D. Perkins Loan

• Based on exceptional financial need
• Up to $5,500 per year; cumulative limit of $27,500 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

Federal Direct Subsidized 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 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, 2010 is fixed at 4.5% for undergraduate students. For graduate students, the interest rate is fixed at 6.8%
• Must maintain satisfactory academic progress.

Federal Direct Unsubsidized 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 with 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.
• The interest rate is fixed at 6.8%.
• 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 may be possible. 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 Direct Student Loan and parents the Federal Direct PLUS Loan before considering a Private Educational Loan.