Current Students | Faculty and Staff | Alumni | Parents

2007-08 Catalog

Loans

Need-Based Non-Need Based Loans

Loans


Student loans allow you to postpone paying for your college expenses until you have completed your education. Loan obligations are described in this section and in the promissory notes. Please read carefully so you understand all your responsibilities before you accept a loan.

Need-Based Loans


Federal Perkins Loan
(funding is limited)


Eligibility: At least half-time (six credit hours) undergraduate or (four credit hours) graduate students with high need.
Amount: Up to $4,000 for each year of undergraduate study and up to $6,000 for each year of graduate or professional study.
Repayment: A fixed interest rate of 5%. There is a nine-month grace period after the student graduates, withdraws, or drops to less than half-time attendance. Principal and interest payments begin at 12 months.  Deferrals available for student status, economic hardship, select volunteer services and pre-cancellation borrowers.
Comments or Conditions: Recipients are required to complete the IPROMISE PROGRAM in full.  The program will be available to completion for all borrowers after the first week of classes.  An email will be sent to these borrowers with instructions on how to complete this process.  All loans not signed for will be cancelled.  Priority is given to undergraduate students.  The total loan may be forgiven for teaching in low-income population areas, teaching the disabled, or teaching in a Federal Head Start program. Additional loan cancellation conditions exist.

Perkins Loan Online Entrance Instructions


You must complete all four steps in the IPROMISE PROGRAM before the funds will be disbursed to your account.

Federal Nursing Loan
(funding is limited)

Eligibility: Student enrolled at least half-time (6 credit hours) in School of Nursing (except pre-nursing). Preference given to LPN students.
Amount: Up to $4,000
Repayment: A fixed interest rate of 5%. There is a nine-month grace period after the student graduates, withdraws, or drops to less than half-time attendance. Principal and interest payments begin at 12 months.
Comments or Conditions: Recipients are required to complete the IPROMISE PROGRAM in full.  The program will be available for all borrowers after the first week of classes. An email will be sent to these borrowers with instructions on how to complete this process.  All loans not signed for will be cancelled.  Priority is given to undergraduate students.

Nurse Faculty Loan Program

Eligibility: NFLP loans are awarded to students enrolled full-time in an eligible advanced degree program (masters or doctoral) in nursing. 
Amount:  Up to the cost of tuition and fees
Repayment: When the repayment period begins on the loan, the school is responsible for collecting payment from the loan recipient.
Comments or Conditions: Loan recipients must agree to complete the education program, and following graduation, may cancel up to 85% of the NFLP loan while serving as full-time nurse faculty at a school of nursing.  The recipients of this loan are required to make an appointment to come into the Student Loan Office (Business Office) each semester to sign for this loan.  Call (253) 535-8361 for an appointment.  It is preferred that the students come in during the week before or week after the semester begins.

Federal Family Education Loans

You may be able to avoid a possible delay by completing and signing your application/promissory note electronically. To do so, go to your lender's website and look for the link to their electronic application/promissory note. If using a lender from our short list of lenders found on our website, a link to their electronic application is already provided. (Please note: If you previously borrowed a FFELP loan at PLU within the past three academic years, you will not need to sign another promissory note and none will be mailed to you.) Loan funds are electronically transmitted to the university by all lenders found on our lender list at the PLU Financial Aid website at  www.plu.edu/~faid.

You have the option of picking any lender participating in the Federal Family Education Loan Program. However, you might want to consider our lender short list, as we have already identified lenders who have served PLU students with good customer service, have waived the loan fees whenever possible, and offered repayment programs which provide maximum opportunity to reduce the total cost of borrowing.

Subsidized Federal Stafford Loan

Amount: Up to $3,500 per year for first year students; $4,500 for sophomores; $5,500 for juniors and seniors; and $8,500 for graduate students.
Repayment: Monthly principal and interest payments begin six months after the student graduates, withdraws, or drops to less than half time attendance. The annual rate of interest is fixed at 6.8%.
Comments or Conditions: The federal government pays the interest on your loan on your behalf until you enter repayment. You are responsible for selecting a lender, and if borrowing the Stafford Loan for the first time, completing the application/promissory note and entrance interview.

Non-Need Based Loans


Unsubsidized Federal Stafford Loan


Amount: Up to $3,500 per year for first year students; $4,500 for sophomores; $5,500 for juniors and seniors; and $10,000 for graduate students.
Repayment: Principal and interest payments begin six months after the student graduates, withdraws, or drops to less than half time attendance. Unsubsidized means you are responsible for the accruing interest on the loan, which begins on the date the loan is disbursed; however, interest payments may be deferred until you enter repayment. The annual rate of interest is fixed at 6.8%.
Comments or Conditions: Financial need is not a requirement. You are responsible for selecting a lender, and if borrowing the Stafford Loan for the first time, completing the application/promissory note and entrance interview.

Federal Graduate and Parent PLUS Loans

Eligibility: Graduate Students or Parents of dependent undergraduate students with an acceptable credit record.
Amount: Parents may borrow up to the full cost of their student’s college education minus the amount of any financial aid the received by the student.
Repayment: Monthly payments begin within 60 days after the final disbursement of funds for the academic year. The borrower may request a postponement of payments until the student completes school, but interest begins accruing from the date the funds are first disbursed at a fixed 8.5%.
Comments or Conditions: Financial need is not a requirement for this loan program; however, the borrower must have an acceptable credit record to qualify.  Either parent (or both) may borrow this loan on behalf of their dependent undergraduate. The borrower is responsible for selecting a lender and completing the application/promissory note. An entrance interview for first time borrowers may also be required..

Additional Unsubsidized Federal Stafford Loan

Amount: Up to $4,000/year for first year students and sophomores and $5,000 for juniors and seniors, $7,000 for Teacher certification students, and $12,000 for graduate students.
Repayment: Monthly principal payments begin six months after the student graduates, withdraws, or drops to less than half-time attendance. Unsubsidized means you are responsible for the accruing interest on the loan, which begins on the date the funds are first disbursed; however, interest payments may be deferred until you enter repayment. The annual interest rate is fixed at 6.8%.
Comments or Conditions: Financial need is not a requirement. The borrower is responsible for selecting a lender from the Lender List, and if borrowing the Stafford Loan for the first time, completing the application/promissory note and entrance interview.

Alternative Loans

Eligibility:  All independent/dependent students must meet lender specific creditworthy criteria which may require a cosigner.
Amount: Up to the Cost of Education minus Financial Aid offered.
Comments and Conditions: Various Alternative Loans are provided for all students, including those not qualifying for Title IV aid.  Please see the PLU Financial Aid Web Site for information on Alternative Loan Lenders:  http://www.plu.edu/~faid/typesofaid/loans/alternative.html

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