Loans for Spring 2010
For students who do not qualify for grants or scholarships or need additional funds to meet their educational expenses, there are several loan programs available where students and families can borrow money to help fund their educational needs.
*Student borrowing and indebtedness are very serious considerations and we want to do all we can to help students make informed choices that will allow them to fund their education. FLCC promotes responsible borrowing. We encourage students to only borrow what they need.
Resources
Federal Stafford Loans
Federal Stafford Loans can be either subsidized or unsubsidized. The Financial Aid Office will determine the type of loan you will receive based on your estimated cost of attendance, other aid received and financial eligibility.
A Federal Subsidized Stafford Loan is awarded on the basis of financial need. If you qualify for a subsidized loan, the federal government pays interest on the loan until you begin repayment.
A Federal Unsubsidized Stafford Loan is not awarded on the basis of need. If you qualify for an unsubsidized loan, you will be charged interest from the time the loan is disbursed until it is paid in full. You can choose to pay the interest or allow it to accumulate. If you allow the interest to accumulate, it will be capitalized--that is, the interest will be added to the principal amount of your loan and will increase the amount you have to repay. If you pay the interest as it accumulates, you will repay less in the long run.
Eligibility:
Students must be: attending at least 6 credits, matriculated in a degree program, in good academic standing, demonstrate financial need, be a U.S. citizen or eligible non-citizen.
Amount:
Freshman: $5500 (0-32 credits earned)
Sophomores: $6500 (32+ credits earned)
If you are an independent student or a dependent student whose parents are unable to qualify for a PLUS loan, you can borrow an additional $4000 unsubsidized loan annually.
Note: The amounts given above are the maximum yearly amounts you can borrow in both subsidized and unsubsidized loans. However, you cannot borrow more than your cost of attendance minus any other financial aid for which you are eligible. This means that you may receive less than the annual maximum amounts.
Interest:
For loans disbursed on or after July 1, 2009
Undergraduate Subsidized Loans…5.6% fixed
Unsubsidized Loans…………………6.8% fixed
Fees:
There is a fee of 1.5% that will be deducted proportionately from each disbursement of your loan.
Repayment:
Repayment on the principle of the loan begins 6 months after you drop below 6 credit hours. Payment will be made to your lender or servicer. For more detailed repayment information including your rights and responsibilities, repayment options, deferment and forbearance go to http://amsa.com/bor/repaying_your_loan/index.cfm.
Already have a student loan? Go to http://amsa.com/bor/borrowers_in_school/index.cfm for important information for borrowers who are in school.
Use this calculator to estimate what your future monthly loan payments will be.
Disbursement:
Your lender will send your loan disbursements to FLCC. They will be sent in two equal installments, 30 days after the start of each term. If you are receiving a single semester loan, you will receive two disbursements in the term. The first will come 30 days after the start of the term and the second will come after the mid-term of the semester. Your loan money must first be applied to your school account to pay for tuition and fees, and other school charges. If loan money remains, the Bursar’s Office at FLCC will send your disbursement to Higher One, a financial services and payment company. Higher One will then send you your refund depending on the disbursement method (FLCC One debit card, ACH transaction into an existing bank account or paper check) you selected with them.
Apply:
Complete a Stafford Loan Request Form. New Stafford Loan borrowers at FLCC will need to complete a comprehensive Entrance Interview and a Master Promissory Note (MPN).
Federal Parent Loan for Undergraduate Students (PLUS) Loan
Federal PLUS loans are credit worthy loans available to parents who wish to obtain a loan to assist their dependent undergraduate child with the cost of education.
Eligibility:
Must be a parent of the dependent student. The student must be attending at least 6 credits, matriculated in a degree program and in good academic standing. Parent and student must be a U.S. citizen or eligible non-citizen. Parent must pass credit check with the lender.
Amount:
Up to full cost of attendance minus other expected financial aid.
Interest:
For loans disbursed on or after July 1, 2006….8.5% fixed
Fees:
There is a fee of 4% that will be deducted proportionately from each disbursement of your loan.
Repayment:
Monthly repayment begins after final disbursement of loan. Borrowers with loans disbursed after July 1, 2008, may apply for a deferment of payment while the student is attending at least 6 credit hours. Contact your lender for more information.
Disbursements:
PLUS funds are disbursed to the school in two (2) equal installments, one at the beginning of the loan period and one at the midpoint of the loan period. The funds are first used to pay school charges and any remaining funds are refunded to the parent.
Apply:
View our Federal PLUS Loan Supplemental Form for instructions on how to apply for a Federal PLUS loan.
Alternative Loans
Alternative loans are private loans (available through various lenders) to assist with the cost of education. These loans are not guaranteed student loans and are generally based on income and credit history. Most students will be required to have a cosigner to obtain one of these private loans. Individuals may only apply for up to the cost of attendance minus any financial aid received. Please carefully review the borrower benefits, loan fees, interest rates, and repayment terms. This information should be available on the web sites of the lenders.
Choosing a Lender
FLCC does not have a preferred list of lenders. Students and parents may use any lender they choose.
Helpful Web sites
- Money Management Tips - Go to this site for helpful money saving ideas.
- National Student Loan Database - Had previous student loans? Forgot who your lender is? Need to determine your outstanding loan balance? Check out this web site for a complete history of your federal student loans.
- My Money 101 - Interested in finding out more about budgeting, credit and student loans? Login and take this interactive online course sponsored by American Student Assistance, our Federal Student Loan Guarantor. Once completed, all students will receive a Certificate of Completion!