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You'll find information on the Stafford Loan program, Grad PLUS and Alternative Loans on this page.

STAFFORD LOAN PROGRAM [back to top]

The Stafford Loan program is the largest single source of federal aid for students pursuing higher education. It is the most popular form of financial aid at Fielding Graduate University. Stafford loans are widely accessible to students of all income levels. There are two types of Stafford Loans, subsidized and unsubsidized. Depending on need, the student may be eligible for one or both loans.

Subsidized
To qualify for a subsidized Federal Stafford Loan, you must demonstrate financial need. The federal government pays all of the interest that accrues (accumulates) on the loan while you're enrolled in school at least half-time and during grace and deferment periods.

Unsubsidized
If you do not meet the financial need criteria to qualify for a subsidized Federal Stafford loan, the unsubsidized loan is available to all students regardless of income. You are responsible to pay the interest that accumulates while you are in school; however, you are not required to make interest payments while in school deferment. You may opt to make interest payments during these periods. If you decide to wait, the interest is capitalized (accumulated and added to the principal balance of your loan).

To be eligible for a Stafford Loan, you must:

• Be a U.S. citizen or eligible non-citizen
• Enroll at Fielding at least half time
• Be up to date on all federal student loan payments
• Not have been convicted of a drug offense
• Make satisfactory academic progress
• Provide two U.S. references
• If male, register with the Selective Service (or have the necessary waiver)
• Complete the yearly FAFSA and Fielding Financial Aid Handbook

Loan Amounts
Graduate students are able to borrow up to $20,500 per year (not to exceed the cost of education for the student's academic program). Those who demonstrate need up to $8,500 are eligible for a Subsidized Federal Stafford Loan. Students may apply for any part of the $20,500 maximum that is not subsidized as an Unsubsidized Federal Stafford Loan. Students who demonstrate no need may apply for up to $20,500 in an Unsubsidized Federal Stafford Loan.

Clinical Psychology students may be eligible for additional unsubsidized loans through the HEAL (Health Education Assistance Loan) program. Please contact your Financial Aid Advisor at Fielding for more details.

Interest Rate and Fees
From July 1, 2007 to June 30, 2008, the interest rate will be a fixed 6.8 %. The interest rate is adjusted each July 1 as mandated by the Department of Education.

Your lender may charge an origination fee of up to 3.00% of the total loan amount, which goes to the federal government to help offset the cost of student loan programs. Your guarantor may charge a fee of 1.00% of the total loan amount as insurance against student loan default. These fees are deducted evenly from each disbursement of your loan. You are responsible for repaying the entire amount of your loan, including fees and interest. There are lenders that do not charge an origination fee; please inquire with the Financial Aid Office.

Select your lender of choice based on front end and back-end incentives from your lender.

Repayment

Standard repayment plan period is 10 years. Repayment on principle begins 6 months after enrollment drops below less than half-time status. Equal monthly payments are made throughout your repayment term, each covering the principal and interest due that month. Your final payment may be slightly more or less than your other payments. Of all the options available, this plan is most likely to result in the lowest aggregated interest costs over the life of your loan. If you are unable to make the standard repayment plans, there are other repayment plans available. Please talk with your lender about other repayment plan options.

Other repayment options

Graduated Payment Plan - Reduces the amount of your monthly payments during the first years of repayment. If you select this option, your monthly payments during the first 2 years will be interest-only payments or higher depending on your loan balance. After the first 2 years of reduced payments, you may have the option to renew the graduated payment plan for an additional 2 years. Although your initial monthly payments are reduced, the aggregated interest repaid over the life of your loan and your later monthly payments will increase. This plan will not extend your repayment term. Minimum loan amounts and other eligibility restrictions may apply.

Income-Sensitive Payment Plan - This repayment option allows you to pay between 4-25% of your gross monthly income (not to drop below the monthly accrued interest on your loan(s)). The income-sensitive payment is offered for a year at a time, up to a total of five years over the life of your loan. The remaining terms follow a standard payment plan. Eligibility and income documentation (i.e. pay stubs for the past 2 months) must be verified annually. Additional documentation may be required.

Extended Payment Plan - If you received your first Stafford Loan, Supplemental Loan for Students (SLS), or PLUS Loan on or after October 7, 1998 and the outstanding balance of these loans totals more than $30,000, you can opt to repay your loan over a 25-year term instead of a 20-year term.

Grad PLUS [back to top]

New PLUS loan program to help graduate students and professional students pay for college - Effective for loans certified by the educational institution on or after July 1, 2006, a graduate student or professional student may borrow a Federal PLUS Loan! With benefits similar to the traditional PLUS loan for parents, the graduate student PLUS loan program (Grad PLUS) allows graduate students or professional students to borrow up to the cost of education at a particular institution minus any other financial aid. There are credit requirements for the graduate student loan, but no debt-to-income ratios or credit scoring is used. The Grad PLUS loan is meant to fill the gap between your financial aid package and the cost of education - your school must determine your Federal Stafford Loan eligibility before you apply for a PLUS loan for graduate students. With the graduate student PLUS loan, the student is the borrower and not the parent.

Interest Rate and Fees
From 7/1/2007 to June 30th 2008, the interest rate will be a fixed 6.8 %. The interest rate is adjusted each July 1 as mandated by the Department of Education.

Your lender may charge an origination fee of up to 3.00% of the total loan amount, which goes to the federal government to help offset the cost of student loan programs. Your guarantor may charge a fee of up to 1.00% of the total loan amount as insurance against student loan default. These fees are deducted evenly from each disbursement of your loan. You are responsible for repaying the entire amount of your loan, including fees and interest. There are lenders that do not charge an origination fee; please inquire with the Financial Aid Office.

The graduate student PLUS Loan interest rate is a fixed rate of 8.5 percent, and some lenders may offer discounts on the rate. With high approval rates and a low, fixed student loan interest rate, this new federal PLUS loan option gives graduate students and professional students an alternative to private student loans. Since private student loans often have variable interest rates, the fixed rate of the Grad PLUS loan allows for better debt management and can result in significant savings.

If unsure what lender to select, review the Graduate PLUS Benefits and features brochure.

ALTERNATIVE LOANS [back to top]

Alternative loans can be used to cover costs up to your cost of education that the Stafford Loan doesn't cover.

Alternative loans, also referred to as private or supplemental loans, offer variable interest rates based on the borrower's credit. Please do read all the terms and conditions of any alternative loan for they are all different. Generally, you will apply directly through the alternative loan lender. The lender will send the loan certification to Fielding for verification of your cost of education and your enrollment status. Alternative loans are also used by students who don't qualify for Stafford Loans.

A guide to better understanding alternative loans.