Types of Financial Aid
Federal Perkins Loan
Federal Perkins loans are made directly through Grand View with funds provided jointly by the university and the federal government. Application is made to Grand View by filing a FAFSA. The amount of your Perkins Loan will depend upon your financial need and available funds. Repayment and 5% interest begin nine months after you cease at least half-time study. Deferments may be made available in certain situations, such as military involvement, volunteer service in a private nonprofit, Vista, or Peace Corps-type organization. When you enter repayment status, certain cancellation provisions are available. The standard repayment period is based on 10 years. Institutions may extend the repayment period for the Federal Perkins Loan up to 10 additional years for low-income individuals. Further details can be found on the Perkins Promissory Note. Funds will not be applied to your university bill until a promissory note has been signed in the Business Office.
Federal Direct Stafford Loans
The Federal Stafford Loan program allows students to borrow low-interest loans from the federal government. Stafford Loans do not have to be repaid until six months after a student graduates or drops below half-time status. To qualify for a Federal Stafford loan, you must file a FAFSA, be admitted to a degree-seeking program, and be enrolled at least half-time. New borrowers must complete an online master promissory note and entrance counseling at https://studentloans.gov.
There are two types of Federal Stafford loans and your award letter may contain a combination of the two.
The Subsidized Stafford Loan is a need-based loan, and the government pays the interest while the borrower is in school. Undergraduate students will have a 3.86%* fixed interest rate and a 1.072%** fee. This rate ends June 30, 2014.
The Unsubsidized Stafford Loan is not need-based, and the government does not pay interest on this loan. Undergraduate students will have a 3.86%* fixed interest rate and a 1.072%** fee. Graduate students will have a 5.41%* fixed interest rate and a 1.072%** fee. While not required, it is recommended that the borrower makes payments on the interest while in school.
*These interest rates are scheduled to change every July 1st and are based off of the federal 10-year treasury rate, plus a small margin.
**The origination fee rates are subject to change based on federal legislation.
A dependent student may be eligible to borrow up to $5,500 per year as a first-year student, $6,500 as a sophomore, and $7,500 as a junior and senior. Independent students and dependent students whose parents have been denied a Federal Parent PLUS loan are eligible for expanded borrowing capabilities based on cost of attendance and other financial aid received. Graduate students are eligible for $20,500 per year.
Repaying your Loan Calculator and Budget Calculator To learn about loan repayment choices, work out your Federal loan monthly payment, or determine expenses and income in order to create a budget for college, go to: https://www.direct.ed.gov/calc.html