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Understanding your federal student aid loans
- 1. Understanding your Federal Student Aid Loans A Tutorial for Independent Undergraduate Level Students: How is My Award Determined?
- 2. Federal Student Loans Subsidized 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 after your last day of attendance* *If you have prior student loans with an agency other than Direct Loans, check with them for repayment terms.
- 3. Federal Student Loans Unsubsidized Loans (Not Need Based) • Interest accrues during school (1/2 time) • Interest rate of 6.8%. • Payment of interest can be paid during school or added to principle for repayment after school. • 10 years to pay off the balance. • Payment on loans begins 6 months after your last day of attendance* *If you have prior student loans with an agency other than Direct Loans, check with them for repayment terms.
- 4. What am I Eligible For? Undergraduate Loan Allowance: $57,500 Lifetime Maximum: $138,500 (Includes Undergraduate and Graduate)
- 5. Definition: Academic Year An Academic Year is defined as approximately 36 weeks of educational instruction. At Kaplan University, an academic year is 3 terms in length. So, each 10 – week course of study (class) is 1/3 of an academic year.
- 6. Loan Award per Academic Year Grade Level Grade level 1: 0 – 36 credits completed Grade Level 2: 37 – 72 credits completed Grade level 3: More than 73 credits completed Loan Availability / Eligibility • Did you complete the FAFSA? • Has the Department of Education indicated you cannot receive loans? • Do you still have funds available? Loan Amount per Grade Level Grade Level Subsidized Unsubsidized 1 $ 3,500 $ 6,000 2 $ 4,500 $ 6,000 3 $ 5,500 $ 7,000
- 7. Awarding the Loan Grade Level 2 with eligibility and availability. $29,000 Unsubsidized Award: $6,000 Subsidized Award: $4,500… IF need allows. Award: $10,500
- 8. Determining Need Need is Cost of Attendance (COA) less Expected Family Contribution (EFC). Cost of Attendance is: Tuition Fees Factors determined by Dept. of Education Simon COA: $20,000 EFC: $ 0.00 Need: $20,000 Roger COA: $20,000 EFC: $17,000 Need: $3,000
- 9. Awarding the Loan Grade Level 2 with eligibility and availability. Unsubsidized Award: $6,000 Subsidized Award: $4,500… IF need allows. Simon COA: $20,000 EFC: $ 0.00 Need: $20,000 Roger COA: $20,000 EFC: $17,000 Need: $3,000 Award: $10,500 Simon Sub: $4,500 Unsub: $6,000 Roger Sub: $3,000 Unsub: $7,500