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Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
Loan Options for Undergraduate Students
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Loan Options for Undergraduate Students

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  • 1. 2011-2012 Loan Options for Undergraduate Students
  • 2. Financial Aid Time <ul><li>January 1st – February </li></ul><ul><li>Free Application for Federal Student Aid </li></ul><ul><ul><ul><li>File by February 15 every year </li></ul></ul></ul><ul><ul><ul><li>www.FAFSA.gov </li></ul></ul></ul><ul><ul><ul><li>Hofstra school code 002732 </li></ul></ul></ul><ul><ul><ul><li>Step-by-step application assistance 1-800-433-3243 </li></ul></ul></ul>
  • 3. Federal PIN <ul><li>Apply for your federal personal identification number (PIN) </li></ul><ul><li>The student and one parent (if the student is dependent) must have a federal PIN to file the FAFSA </li></ul><ul><li>www.pin.ed.gov </li></ul><ul><li>1-800-433-3243 for step-by-step assistance </li></ul>
  • 4. Federal Loan Programs <ul><ul><li>All federal loans require the FAFSA </li></ul></ul><ul><ul><li>Loan funds are disbursed directly to Hofstra University </li></ul></ul><ul><li>Federal Direct Stafford Loan (student borrower) </li></ul><ul><li>Federal Direct Parent Loan for Dependent Undergraduate Students (parent borrower) </li></ul><ul><li>Federal Perkins Loan (student borrower) </li></ul>
  • 5. Federal Perkins Student Loans <ul><ul><li>Limited pool of funds are allocated to colleges on a yearly basis </li></ul></ul><ul><ul><li>Awarded to students with the highest financial need </li></ul></ul><ul><ul><li>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 </li></ul></ul><ul><ul><li>Fixed 5% interest rate </li></ul></ul><ul><ul><li>Repayment begins nine months after graduation, withdrawing from school or dropping below half-time enrollment </li></ul></ul><ul><ul><li> (minimum 6 credits per term) </li></ul></ul><ul><ul><li>No loan fees </li></ul></ul>
  • 6. Federal Stafford Loans (Subsidized and Unsubsidized) <ul><ul><li>Subsidized- no interest accrues while the student is in school </li></ul></ul><ul><ul><li>Unsubsidized- interest accrues while the student is in school </li></ul></ul><ul><li>The annual borrowing limit is based on the year in college determined by the number of credits earned </li></ul><ul><li>.5% loan fee is deducted from the disbursement </li></ul><ul><li>Repayment begins six months after graduation, withdrawing from school or dropping below half-time enrollment </li></ul><ul><li>(minimum 6 credits per term) </li></ul>
  • 7. 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 &amp; 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
  • 8. Independent Annual Stafford Limits *Year in College Gross Annual Amount 1 st (0-29cr) 2 nd (30-59cr) 3 rd &amp; 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)
  • 9. Undergraduate Aggregate Stafford Limits Dependent Undergraduate $31,000 (no more than $23,000 subsidized) Independent Undergraduate $57,500 (no more than $23,000 subsidized)
  • 10. 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%
  • 11. Federal Parent Loan for Dependent Undergraduate Students (PLUS) <ul><li>Borrowers are parents of undergraduate students </li></ul><ul><li>Annual limit is the full cost of attendance minus other aid received including student loans </li></ul><ul><li>No aggregate limit </li></ul><ul><li>Repayment begins 60 days after final disbursement, however, deferment options are available </li></ul><ul><li>Interest rate is fixed at 7.9% </li></ul><ul><li>Fees: 2.5% deducted from disbursement </li></ul><ul><li>Credit criteria- an endorser (co-signer) can be used </li></ul>
  • 12. Stafford and PLUS Master Promissory Note (MPN) <ul><li>The MPN is a legal document signed once by the borrower which eliminates the need to sign a new Promissory Note each year </li></ul><ul><li>Annual notification of eligibility-with the option of accepting, canceling or reducing the amount </li></ul><ul><li>A separate MPN is required for Stafford and PLUS Loans </li></ul><ul><li>The Promissory Note contains the terms and conditions of the loan, and the borrower’s agreement to repay the loan </li></ul>
  • 13. www.studentloans.gov <ul><li>First-time Stafford borrowers: </li></ul><ul><li>Complete the entrance counseling and MPN </li></ul><ul><li>First-time Parent PLUS borrowers: </li></ul><ul><li>Complete the parent application form and MPN </li></ul><ul><li>Step-by-step application assistance: </li></ul><ul><li>1-800-557-7394 </li></ul>
  • 14. <ul><li>The borrower will need </li></ul><ul><ul><ul><li>Social Security number </li></ul></ul></ul><ul><ul><ul><li>Federal PIN number www.pin.ed.gov </li></ul></ul></ul><ul><ul><ul><li>Complete addresses and phone numbers for two references not living at the same address </li></ul></ul></ul><ul><ul><ul><li>Driver’s license number (if applicable) </li></ul></ul></ul>
  • 15. www.studentloans.gov
  • 16. &nbsp;
  • 17. &nbsp;
  • 18. Kate Hofstra
  • 19. &nbsp;
  • 20. &nbsp;
  • 21. &nbsp;
  • 22. &nbsp;
  • 23. &nbsp;
  • 24. <ul><li>The Parent signs in using the parent’s - </li></ul><ul><ul><ul><li>Social Security number </li></ul></ul></ul><ul><ul><ul><li>First two letters of his/her last name </li></ul></ul></ul><ul><ul><ul><li>Date of birth </li></ul></ul></ul><ul><ul><ul><li>Federal PIN </li></ul></ul></ul>
  • 25. &nbsp;
  • 26. &nbsp;
  • 27. &nbsp;
  • 28. &nbsp;
  • 29. Parent PLUS Endorser <ul><li>If a parent is experiencing credit issues, an endorser (co-signer) may be used for the PLUS loan </li></ul><ul><li>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 </li></ul>
  • 30. &nbsp;
  • 31. &nbsp;
  • 32. Borrowing each year after <ul><li>File the FAFSA by February 15 every year </li></ul><ul><li>The same federal PIN is used every year </li></ul><ul><li>Award notifications are e-mailed to students who file the FAFSA to accept/decline online at www.my.hofstra.edu in June </li></ul><ul><li>Stafford loans are processed just by accepting with Hofstra </li></ul><ul><li>For Parent PLUS, complete the application request form for every loan, every year at www.studentloans.gov </li></ul>
  • 33. 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 <ul><li>Application Request </li></ul><ul><li>Master Promissory Note </li></ul>
  • 34. 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
  • 35. Private- Alternative Loans <ul><li>Annual limit is the full cost of attendance minus other aid received including student and parent PLUS loans </li></ul><ul><li>Private/alternative loan interest rates are not set by the federal government </li></ul><ul><li>Some lenders may require payment of the interest while the student is in school </li></ul><ul><li>Credit worthy co-signer usually required </li></ul><ul><ul><li>does not have to be a parent </li></ul></ul><ul><li>Minimum age for the student (18 years of age) usually required </li></ul>
  • 36. Private-Alternative Lenders <ul><li>Apply directly with the lender </li></ul><ul><li>www.Finaid.org/loans/privatestudentloans.phtml </li></ul><ul><li>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. </li></ul>
  • 37. Help is available! <ul><li>FAFSA www.FAFSA.gov 1-800-433-3243 </li></ul><ul><li>Federal PIN www.pin.ed.gov 1-800-433-3243 </li></ul><ul><li>Federal Direct Loans www.studentloans.gov </li></ul><ul><li>-Step-by-step application assistance 1-800-557-7394 </li></ul><ul><li>-Parent PLUS deferment information 1-800-848-0979 </li></ul><ul><li>Detailed Federal Aid Information www.studentaid.ed.gov 1-800-433-3243 </li></ul>

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