1998-1999 Undergraduate Catalog
Indiana, Pennsylvania 15705

Finances

Educational Loans
Loan programs offer repayable assistance to students who apply and qualify for them. Repayment terms, interest rates, and borrowing limits vary from program to program. Educational loans are a serious and important obligation. Receipt of funds means that the student assumes the legal responsibility for repayment of the loan at a future date. The promissory note for the loan specifies the terms and conditions under which the student is borrowing and the repayment provisions that are in effect. Participation in Community Service positions after leaving school may provide for repayment of certain student loans.

Federal Perkins Loan
The application for the Federal Perkins Loan is the Free Application for Federal Student Aid (FAFSA). The loan is awarded to students on the basis of financial need and FAFSA receipt date of May 1 or earlier. Students who receive this loan must be enrolled for at least six credits each semester. There are no principal or interest payments until nine months after the student ceases half-time attendance (six credits per term). The minimum repayment rate is $40 per month at a simple interest rate of 5 percent per year on the unpaid balance. There are deferment and cancellation provisions available.

Federal Stafford Loan
Applications for the Federal Stafford Loan are obtained from lending institutions. These include banks, savings and loan associations, credit unions, etc. A Free Application for Federal Student Aid (FAFSA) must also be completed.

Through this program, freshmen may borrow up to $2,625 per academic year, sophomores may borrow up to $3,500 per academic year, and juniors and seniors may borrow up to $5,500 per academic year. Subsidized Federal Stafford Loans are awarded on the basis of financial need as determined by the Free Application for Federal Student Aid (FAFSA) and require no payment of interest or principal until six months after the student ceases half-time enrollment (six credits per term). Unsubsidized Federal Stafford Loans require payment of interest only during periods of enrollment and the six-month grace period. Following the grace period, both types of Federal Stafford Loans are repayable to the lender at a variable interest rate not to exceed 8.25 percent.

Additional unsubsidized Federal Stafford Loan funds are available to independent undergraduate students. Freshmen and sophomores may request up to $4,000; juniors and seniors may request up to $5,000. Dependent students whose parents cannot obtain a Federal PLUS Loan may also apply for these additional unsubsidized funds.

Federal PLUS Loan
Federal Parent Loans for Undergraduate Students (FPLUS) are obtained from lending institutions such as banks and credit unions and are administered in conjunction with the federal government. Parents may borrow for their dependent children up to the cost of education minus other financial aid. The loans are repaid at a variable interest rate not to exceed 9 percent per year starting sixty days after the final check is issued.

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This information is maintained by the Office of the Registrar, with approval from the University Senate. Last Modified at 1:19 PM on 7/17/98.