Federal Perkins Loans are low interest (5%) loans made by Simpson College directly to students. Loans are awarded based on financial need and availability of funds.
Subsidized Federal Stafford Student Loans may be borrowed by students enrolled at least half-time at Simpson College. Students may borrow loan amounts based on their grade level – freshman $3,500, sophomore $4,500, junior and senior $5,500.
Subsidized loans do not accrue interest charges while the student is enrolled at least half-time. Repayment will begin six months after the student graduates or drops below half-time. The interest rate is fixed at 4.66%. Interest accrual begins at graduation or less than half-time enrollment.
Unsubsidized Federal Stafford Student Loans may be borrowed by students enrolled at least half-time at Simpson College. Unsubsidized loans are not awarded based on financial need, and therefore will begin to accrue interest charges at disbursement. The interest rate is fixed at 4.66%.
Students are awarded a base Unsubsidized Stafford Loan of $2,000 in addition to their Subsidized Stafford Loan eligibility. Independent students may borrow up to an additional $4,000 as a freshman and sophomore, or $5,000 as a junior and senior.
Stafford Loan Entrance Counseling is a requirement that all first-time Stafford Loan borrowers must complete prior to receiving loan funds. Entrance counseling prepares students for responsible borrowing and proper repayment of their loans. The counseling and master promissory note may be completed online at www.studentloans.gov.
Federal Plus Loans enable parents to borrow a federal loan to help pay the students education expenses. Parents may borrow up to the cost of attendance minus other financial aid received.
The interest rate is fixed at 7.21% and interest charges begin to accrue at disbursement. Repayment begins within 60 days of disbursement, or the parent can defer repayment for up to six months after the student graduates or drops below half-time enrollment. To apply for the PLUS loan and complete the master promissory note go to: www.studentloans.gov.
Note: Because a PLUS Loan credit-check by the U.S. Department of Education is only valid for 90 days, it is advised not to complete the PLUS Loan Request application until after June 5, 2014.