Loan Options for Undergraduate Students

2011-2012 Loan Options for Undergraduate Students

Financial Aid Time
January 1st – February
Free Application for Federal Student Aid
File by February 15 every year
www.FAFSA.gov
Hofstra school code 002732
Step-by-step application assistance 1-800-433-3243

Federal PIN
Apply for your federal personal identification number (PIN)
The student and one parent (if the student is dependent) must have a federal PIN to file the FAFSA
www.pin.ed.gov
1-800-433-3243 for step-by-step assistance

Federal Loan Programs
All federal loans require the FAFSA
Loan funds are disbursed directly to Hofstra University
Federal Direct Stafford Loan (student borrower)
Federal Direct Parent Loan for Dependent Undergraduate Students (parent borrower)
Federal Perkins Loan (student borrower)

Federal Perkins Student Loans
Limited pool of funds are allocated to colleges on a yearly basis
Awarded to students with the highest financial need
It will appear on the financial aid notification letter if the student is awarded it and a Master Promissory Note will be included to complete and return directly to the Office of Student Financial Services at Hofstra
Fixed 5% interest rate
Repayment begins nine months after graduation, withdrawing from school or dropping below half-time enrollment
(minimum 6 credits per term)
No loan fees

Federal Stafford Loans (Subsidized and Unsubsidized)
Subsidized- no interest accrues while the student is in school
Unsubsidized- interest accrues while the student is in school
The annual borrowing limit is based on the year in college determined by the number of credits earned
.5% loan fee is deducted from the disbursement
Repayment begins six months after graduation, withdrawing from school or dropping below half-time enrollment
(minimum 6 credits per term)

Dependent Student Annual Stafford Limits *Year in College Gross Annual Loan 2 nd Additional Unsub if Denied PLUS 1 st (0-29cr) 2 nd (30-59cr) 3 rd & beyond (60+) *based on number of credits earned $5,500 (max subsidized $3,500) $6,500 (max subsidized $4,500) $7,500 (max subsidized $5,500) $4,000 $4,000 $5,000

Independent Annual Stafford Limits *Year in College Gross Annual Amount 1 st (0-29cr) 2 nd (30-59cr) 3 rd & beyond (60+) *based on number of credits earned $9,500 (max subsidized portion $3,500) $10,500 (max subsidized portion $4,500) $12,500 (max subsidized portion $5,500)

Undergraduate Aggregate Stafford Limits Dependent Undergraduate $31,000 (no more than $23,000 subsidized) Independent Undergraduate $57,500 (no more than $23,000 subsidized)

Federal Stafford Loan Interest Rates in Repayment Year Interest Rate Subsidized Stafford Loans Interest Rate Unsubsidized Stafford Loans 2011-2012 3.4% 6.8% 2012-2013 6.8% 6.8%

Federal Parent Loan for Dependent Undergraduate Students (PLUS)
Borrowers are parents of undergraduate students
Annual limit is the full cost of attendance minus other aid received including student loans
No aggregate limit
Repayment begins 60 days after final disbursement, however, deferment options are available
Interest rate is fixed at 7.9%
Fees: 2.5% deducted from disbursement
Credit criteria- an endorser (co-signer) can be used

Stafford and PLUS Master Promissory Note (MPN)
The MPN is a legal document signed once by the borrower which eliminates the need to sign a new Promissory Note each year
Annual notification of eligibility-with the option of accepting, canceling or reducing the amount
A separate MPN is required for Stafford and PLUS Loans
The Promissory Note contains the terms and conditions of the loan, and the borrower’s agreement to repay the loan

www.studentloans.gov
First-time Stafford borrowers:
Complete the entrance counseling and MPN
First-time Parent PLUS borrowers:
Complete the parent application form and MPN
Step-by-step application assistance:
1-800-557-7394

The borrower will need
Social Security number
Federal PIN number www.pin.ed.gov
Complete addresses and phone numbers for two references not living at the same address
Driver’s license number (if applicable)

www.studentloans.gov

Kate Hofstra

The Parent signs in using the parent’s -
Social Security number
First two letters of his/her last name
Date of birth
Federal PIN

Parent PLUS Endorser
If a parent is experiencing credit issues, an endorser (co-signer) may be used for the PLUS loan
Call 1-800-557-7394 for more information regarding the criteria used for the credit check and for step-by-step assistance when using an endorser

Borrowing each year after
File the FAFSA by February 15 every year
The same federal PIN is used every year
Award notifications are e-mailed to students who file the FAFSA to accept/decline online at www.my.hofstra.edu in June
Stafford loans are processed just by accepting with Hofstra
For Parent PLUS, complete the application request form for every loan, every year at www.studentloans.gov

Summary for First-time Borrowers Stafford Parent PLUS www.pin.ed.gov 1-800-433-3243 Apply for federal student PIN Apply for federal parent PIN www.FAFSA.gov 1-800-433-3243 Hofstra code 002732 FAFSA FAFSA www.my.hofstra.edu or paper award letter 516-463-8000 Accept loan offer ---------------- www.studentloans.gov 1-800-557-7394 1) Entrance Counseling 2) Master Promissory Note
Application Request
Master Promissory Note

Summary for Continuing Borrowers Stafford Parent PLUS www.pin.ed.gov 1-800-433-3243 Use the same federal PIN at www.fafsa.gov and www.studentloans.gov every year- reset if forgotten Use the same federal PIN at www.fafsa.gov and www.studentloans.gov every year- reset if forgotten www.FAFSA.gov 1-800-433-3243 Hofstra code 002732 File FAFSA by February 15 every year File FAFSA with student by February 15 every year www.my.hofstra.edu 516-463-8000 Accept loan offer Accept loan offer www.studentloans.gov 1-800-557-7394 ------------ Application Request

Private- Alternative Loans
Annual limit is the full cost of attendance minus other aid received including student and parent PLUS loans
Private/alternative loan interest rates are not set by the federal government
Some lenders may require payment of the interest while the student is in school
Credit worthy co-signer usually required
does not have to be a parent
Minimum age for the student (18 years of age) usually required

Private-Alternative Lenders
Apply directly with the lender
www.Finaid.org/loans/privatestudentloans.phtml
Disclaimer: Links are provided as a general information source for the use of visitors to the web site. The links provided are maintained by their respective organizations, and they are solely responsible for their content. Hofstra does not favor one link over another, nor does Hofstra endorse or profit, in whole or in part, from any products or services offered or promoted by any of the web sites whose links appear.

Help is available!
FAFSA www.FAFSA.gov 1-800-433-3243
Federal PIN www.pin.ed.gov 1-800-433-3243
Federal Direct Loans www.studentloans.gov
-Step-by-step application assistance 1-800-557-7394
-Parent PLUS deferment information 1-800-848-0979
Detailed Federal Aid Information www.studentaid.ed.gov 1-800-433-3243

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Loan Options for Undergraduate Students

by Hofstra University on Aug 09, 2011

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Loan Options for Undergraduate Students — Presentation Transcript