Financial Aid Loans
REMEMBER: Roseman’s Financial Aid Office is unable to replace denied loans with other sources of aid, so it is critical for applicants to know whether their credit history will support planned borrowing. You may obtain a copy of one or all three credit reports free once a year as mandated by Fair Credit Reporting Act from www.annualcreditreport.com or (877) 322-8228.
Loans are funds that are borrowed and must be repaid. There are several different types of loans for students, including federal and private. Plan carefully if you choose to borrow a student loan. While loans may be necessary in order for you to attend college, students should borrow conservatively. If you are offered a student loan as part of your financial aid award, you have the option to accept, reduce, or decline the loan.
For detailed information on all federal loans go to StudentAid.gov.
- Direct Subsidized Loans are for Undergraduates with financial need. The U.S. Department of Education will pay the interest on a Subsidized Loan while the student is in school at least half time. The current interest rate is 3.76%.
- Direct Unsubsidized Loans are available to Undergraduate and Graduate students and are not based on need. The current interest rate for Undergraduates is 3.76%. The current interest rate for Graduates is 5.31%
- Direct Grad PLUS Loans are available for Graduate students and eligibility is based on credit. The current interest rate is 6.31%
- Direct PLUS Loans are available for parents of Dependent Undergraduate students, eligibility is based on credit. The current interest rate is 6.31%
Loan Origination Fees
Federal student loans have loan fees that are a percentage of the total loan amount. The loan fee is deducted proportionately from each loan disbursement you receive. This means the money you receive will be less than the amount you actually borrow. You are responsible for repaying the entire amount you borrowed and not just the amount you received.
- Direct Subsidized Loans with a first disbursement date between 10/1/15 and 9/30/16 have an origination fee of 1.068%. Direct Subsidized Loans with a first disbursement date between 10/1/16 and 9/30/17 have an origination fee of 1.069%.
- Direct Unsubsidized Loans with a first disbursement date between 10/1/15 and 9/30/16 have an origination fee of 1.068%. Direct Unsubsidized Loans with a first disbursement date between 10/1/16 and 9/30/17 have an origination fee of 1.069%.
- Direct PLUS or Grad PLUS Loans with a first disbursement date between 10/1/15 and 9/30/16 have an origination fee of 4.272%. Direct PLUS Loans with a first disbursement date between 10/1/16 and 9/30/17 have an origination fee of 4.276%.
National Student Loan Data System (NSLDS) Students and/or parents who elect to receive a Title IV loan (e.g., subsidized or unsubsidized Stafford or PLUS and Grad PLUS loans) at Roseman University will have that loan information submitted to NSLDS and it will be accessible by guaranty agencies, lenders and institutions who are authorized users of the data system. Students and/or parents may view their information at www.nslds.ed.gov.
Federal Stafford Loan Maximums Per Award Year
|ABSN & BSN||$5,500||$2,000||$5,500||$7,000|
*No Subsidized loans for graduate students beginning July 1, 2012.
**AEODO/MBA is not eligible for Health Professional maximums because residents receive a post-doctoral certificate in Orthodontics and a Master in Business Administration. Borrowers of federal Title IV loans are subject to aggregate loan limits. There is a cap on the total amount a student is allowed to borrow. It is very important for students to be aware of their lifetime loan totals and their aggregate loan limits. Students need to borrow conservatively, consider how much they will need to borrow in the future, and know when they will reach their aggregate limit. Students can access their Title IV loan information at NSLDS and receive a comprehensive review of all Federal Family Education Loan Program Loans, Direct Loans, Perkins Loans, and Pell grants they have received. Students must have a PIN to access their information.
Lifetime Federal Stafford Loan Aggregates
|Dependent Undergraduate||$31,000 (no more than $23,000 subsidized)|
|Independent Undergraduate||$57,500 (no more than $23,000 subsidized)|
|Graduate/Professional (MBA & AEODO/MBA*)||$138,500 (no more than $65,500 subsidized)|
|Graduate/Health Professional (Pharmacy & DMD)||$224,000 (no more than $65,500 subsidized)|
*AEODO/MBA is not eligible for Health Professional limits because residents receive a post-doctoral certificate in Orthodontics and a Master in Business Administration.
These are credit based loans in the student’s name. Private/alternative loans are available to all students who can be approved by a lender. The amount is not to exceed the student’s Cost of Attendance minus the student’s other financial aid. Interest rates vary from lender to lender. Some lenders may require the student to maintain Satisfactory Academic Progress (SAP). It is the student’s responsibility to understand the lender’s criteria when borrowing a private/alternative loan. For more details on these private education loans (and/or to verify the latest information, which may be changed by the lenders without notice), contact the lenders directly. To apply, choose a lender you prefer and apply directly with them. FASTChoice is a tool that can help you with your lender search. You must reapply each year you want the loan.
Federal Loans vs. Private Loans
|Federal Student Loans (from the Department of Education)||Private Student Loans|
(from banks, credit unions, etc. non-federal loans)
|You will not have to start repaying your federal student loans until you graduate, leave school, or change your enrollment status to less than half-time||Many private student loans require payments while you are in school|
|The interest rate is fixed and may be lower than private loans –and much lower than credit card interest rates||Private student loans can have variable or fixed interest rates, some greater than 18%|
|Undergraduate students with greater financial need might qualify for a subsidized loan||Private student loans are not subsidized. You are responsible for the interest payments|
|You don’t need to pass a credit check to get a federal student loan (except for PLUS loans). Federal student loans can help you establish a good credit record||Private student loans may require an established credit record. The cost of a private student loan depends on your credit score, which you may not have as a student|
|You don’t need a co-signer (except for PLUS loans) to get a federal student loan||You may need a co-signer to get the best possible deal|
|Some interest is tax deductible||Interest may not be tax deductible|
|Loans can be consolidated into a Direct Consolidation Loan. Go to www.loanconsolidation.ed.gov for more information on consolidation loans||Private student loans cannot be consolidated into the federal loan consolidation program|
|No pre-payment penalty fee||You need to make sure there are no pre-payment penalty fees|
Also, avoid using credit cards to pay for your education. Interest rates on credit cards are very high, payments are due every month, and usually don’t offer different repayment and deferment (temporarily postpone payments) options.