Loans
offer repayable assistance to students who apply and
qualify for them. Generally, no principal or interest
payments are required while students are enrolled or for
six months after they leave IUP.
Follow the links
below, and visit our Financial
Aid Office page for further assistance.
Federal
Perkins Loan
Federal Stafford Loan
Federal Parent Loan for Undergraduate
Students (PLUS)
Federal
Perkins Loan
The Federal Perkins Loan is funded by the federal
government and administered by IUP. Eligibility is based
on your financial need. To apply for this loan you must
submit the Free
Application for Federal Student Aid (FAFSA) by April
15.
At IUP approximately $200 to $3,000 per year may be
borrowed through this program. For new borrowers,
repayment follows a nine month grace period after
ceasing half-time enrollment (six credits peer term).
<back to top>
Federal
Stafford Loan
The Federal Stafford Loan application Process begins
when you complete the Free
Application for Federal Student Aid (FAFSA) and
answer "yes" to the loan interest question.
PHEAA will send you a Promissory Note (MPN) to complete
the loan application process. The Federal Stafford Loan
process is administered by IUP in conjunction with the
federal government. The cost of your education, expected
family contribution, and other aid resources determine
your eligibility for the loan. A Subsidized Federal
Stafford Loan is based upon financial need and requires
no payment of principals or interest until six months
after the student ceases half-time attendance (six
credits per term). Following this six month grace
period, a minimum payment of $50 per month is required.
An Unsubsidized Federal Stafford Loan requires the
payments of only interest during periods of enrollment
and the six month grace period while the principal is
still deferred. Check with your lender to see how you
will be billed for these required interest payments on
an unsubsidized loan. The amount of loans that a student
may borrow per academic grade level from the Federal
Stafford Loan Program is as follows:
|
Freshman:
|
$2,625
|
|
Sophomores:
|
$3,500
|
|
Juniors and Seniors:
|
$5,500
|
The maximum amount an undergraduate may borrow is
$23,000. For independent students and for dependant
students whose parents cannot participate in the Federal
PLUS Loan program, an additional amount of unsubsidized
Stafford Loan may be requested. Freshman and sophomores
may apply for an additional $4,000 and juniors and
seniors may apply for $5,000. Participating in this
extended unsubsidized program permits an additional
$23,000 in borrowing.
Federal Stafford Loans are disbursed in two equal
installments, and students are required to attend a Federal
Stafford Loan Entrance Interview before receiving
funds for the first time at IUP. Borrowers are
encouraged to request electronic fund transfer (EFT) of
their loan proceeds on the Stafford application. For
students who have not elected EFT, you must endorse each
Federal Stafford Loan check disbursed to IUP on your
behalf.
<back to top>
Federal
Parent Loan for Undergraduate Students (PLUS)
Federal PLUS Loans are for parents who want to borrow to
help pay for their dependent child's education.
Applications for a Federal PLUS loan may be obtained
from private lending institutions such as banks, credit
unions, and savings and loan associations. Federal PLUS
loan eligibility is based upon creditworthiness and not
financial need.
Parents may borrow an amount up to the cost of education
minus subsidized Federal Stafford Loan eligibility and
other aid for each dependent child who is enrolled on at
least a half-time basis (six credits per term). The
Federal PLUS loan interest is a variable rate not to
exceed 9 percent. The rate is set annually based upon
the 52 Week Treasury Bill rate + 3.1 percent. Repayment
of principal and interest begins 30 - 60 days after
disbursement of the loan funds. There are some limited
deferment provisions available.
<back to top>
|
