Understanding your federal student aid loans

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Overview of federal student loans for independent undergraduate students.

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Understanding your federal student aid loans

  1. 1. Understanding your FederalStudent Aid LoansA Tutorial for IndependentUndergraduate Level Students:How is My Award Determined?
  2. 2. Federal Student LoansSubsidized Loans (need based)• No interest accrues during school (1/2 time)• Interest rate of 3.4%• 10 years to pay off the balance• Payment on loans begins 6 months afteryour last day of attendance**If you have prior student loans with an agency other than DirectLoans, check with them for repayment terms.
  3. 3. Federal Student LoansUnsubsidized Loans (Not Need Based)• Interest accrues during school (1/2 time)• Interest rate of 6.8%.• Payment of interest can be paid during schoolor added to principle for repayment afterschool.• 10 years to pay off the balance.• Payment on loans begins 6 months after yourlast day of attendance**If you have prior student loans with an agency otherthan Direct Loans, check with them for repayment terms.
  4. 4. What am I Eligible For?Undergraduate Loan Allowance:$57,500Lifetime Maximum: $138,500(Includes Undergraduate and Graduate)
  5. 5. Definition: Academic YearAn Academic Year is defined asapproximately 36 weeks of educationalinstruction.At Kaplan University, an academic year is 3terms in length.So, each 10 – week course of study (class)is 1/3 of an academic year.
  6. 6. Loan Award per Academic YearGrade LevelGrade level 1: 0 – 36 credits completedGrade Level 2: 37 – 72 credits completedGrade level 3: More than 73 credits completedLoan Availability / Eligibility• Did you complete the FAFSA?• Has the Department of Education indicated youcannot receive loans?• Do you still have funds available?Loan Amount per Grade LevelGrade Level Subsidized Unsubsidized1 $ 3,500 $ 6,0002 $ 4,500 $ 6,0003 $ 5,500 $ 7,000
  7. 7. Awarding the LoanGrade Level 2 with eligibility and availability.$29,000Unsubsidized Award: $6,000Subsidized Award: $4,500…IF need allows.Award: $10,500
  8. 8. Determining NeedNeed is Cost of Attendance (COA)lessExpected Family Contribution (EFC).Cost of Attendance is:TuitionFeesFactors determined by Dept. of EducationSimonCOA: $20,000EFC: $ 0.00Need: $20,000RogerCOA: $20,000EFC: $17,000Need: $3,000
  9. 9. Awarding the LoanGrade Level 2 with eligibility and availability.Unsubsidized Award: $6,000Subsidized Award: $4,500…IF need allows.SimonCOA: $20,000EFC: $ 0.00Need: $20,000RogerCOA: $20,000EFC: $17,000Need: $3,000Award: $10,500SimonSub: $4,500Unsub: $6,000RogerSub: $3,000Unsub: $7,500

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