REPAYMENT INFORMATION
The acceptance of a loan is a very serious legal obligation. It is, therefore, imperative that all student borrowers have a thorough understanding of all terms and conditions of the loan. The Financial Aid Office staff is available to answer questions concerning interest rates, repayment terms, etc.
The following table demonstrates the loan repayment associated with a total loan amount of $15,000 (the average indebtedness of current ASU students) calculated at various interest rates with the maximum pay period of 120 months.
| Interest |
Monthly |
Total |
| Rate |
Payment |
Interest |
| 5% |
$159.10 |
$4,092.00 |
| 6% |
$166.53 |
$4,983.69 |
| 7% |
$174.16 |
$5,899.20 |
| 8% |
$181.99 |
$6,838.80 |
| 9% |
$190.01 |
$7,801.20 |
ENTRANCE AND EXIT COUNSELING REQUIREMENTS
Students receiving funding through the federal loan programs must complete entrance counseling before receiving the first loan disbursement. Prior to graduating, transferring, or dropping below half-time status, all federal loan recipients must complete exit counseling. Entrance and exit counseling is required to inform each borrower of his/her rights and responsibilities as a loan recipient, and to allow an opportunity for questions concerning the program requirements and repayment options. Entrance and exit counseling is provided via the Internet.
FEDERAL PERKINS LOAN
The Federal Perkins Loan is a need-based loan program available to students who enroll at least half-time. Awards are limited to award year (Y) and aggregate (A) maximums (undergraduate: Y =$4,000, A = $20,000; graduate: Y =$6,000, A = $40,000 including any undergraduate amount). The current interest rate is 5% and does not accrue while the student is enrolled at least half-time. Repayment begins 9 months after the student ceases half-time enrollment. In addition to deferment benefits, loan cancellation for employment in designated teaching and public service areas is offered.
FEDERAL STAFFORD LOAN
The Federal Stafford Loan is a loan program offered through participating lending institutions for the purpose of making available low-interest loans to students who enroll at least half-time. Repayment of the principal begins 6 months after the student ceases half-time enrollment. The interest rate is variable, capped at 6.8%.
Stafford Loans are either subsidized or unsubsidized. A subsidized loan is awarded on the basis of financial need. The federal government pays the interest on the loan until the student begins repayment and during authorized periods of deferment. An unsubsidized loan is not awarded on the basis of need. The borrower will be charged interest from the time the loan is disbursed until it is paid in full.
Awards are limited to award year and aggregate maximums based on the borrower's grade level and dependency status for financial aid purposes.
| Dependent Undergraduate Loan Limits Effective 07/01/2008:
|
| Freshman |
$3,500 per yr base amount (depending on need can be sub/unsub) |
$2,000 increase (unsub) |
Total $ 5,500 |
| Sophomore |
$4,500 per yr base amount (depending on need can be sub/unsub) |
$2,000 increase (unsub) |
Total $ 6,500 |
| Junior |
$5,500 per yr base amount (depending on need can be sub/unsub) |
$2,000 increase (unsub) |
Total $ 7,500 |
| Senior |
$5,500 per yr base amount (depending on need can be sub/unsub) |
$2,000 increase (unsub) |
Total $ 7,500 |
| Aggregate |
$31,500 (no more than $23,000 of which can be subsidized) |
| Independent Undergraduate Loan Limits Effective 07/01/2008:
|
| Freshman |
$3,500 per yr base amount (depending on need can be sub/unsub) |
$6,000 increase (unsub) |
Total $ 9,500 |
| Sophomore |
$4,500 per yr base amount (depending on need can be sub/unsub) |
$6,000 increase (unsub) |
Total $10,500 |
| Junior |
$5,500 per yr base amount (depending on need can be sub/unsub) |
$6,000 increase (unsub) |
Total $11,500 |
| Senior |
$5,500 per yr base amount (depending on need can be sub/unsub) |
$6,000 increase (unsub) |
Total $11,500 |
| Aggregate |
$57,500 (no more than $23,000 of which can be subsidized) |
| Graduate Loan Limits Effective 07/01/2008: |
| Annually |
$8,500 per yr (sub/unsub) $12,000 per yr (additional unsub) |
| Aggregate |
$138,500 (includes undergraduate loans no more than $65,500 can be subsidized) |
FEDERAL PARENT LOAN FOR UNDERGRADUATE STUDENTS (FPLUS)
The Federal Parent Loan for Undergraduate Students (FPLUS) is a loan program offered through participating lending institutions and is available to the parents of dependent students who enroll at least half-time. Eligibility is not determined on the basis of need. Repayment begins 60 days after full disbursement of the loan amount. The interest rate is variable, capped at 8.5%. Awards are limited to the student's cost of attendance less financial aid (including any Subsidized Stafford Loan eligibility).
It is the borrower’s right to choose any participating lender. The lenders included on ASU’s lender list responded to an RFI which was reviewed by a university committee comprised of staff and student representatives. Customer service, borrower benefits, website information, default prevention activities, and application/disbursement processes were rated. The ratings were analyzed and scored by the ASU Institutional Research and Assessment Office. This list is provided in rating order.
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