Federal Perkins Loan (formerly National Direct Student
Loan)
The Perkins Loan program is
for a student who is enrolled in a degree or certificate program in a
participating postsecondary institution and who needs a loan to meet
educational expenses. Abraham Baldwin participates in this loan program
established under the National Defense Education Act of 1958. Funds jointly
provided by Abraham Baldwin and the federal government are used to make
long-term, low-interest loans to a qualified student. Awards range up to a
maximum of $4,500 for the first two years of undergraduate study. Interest at
the rate of 5% and repayment over a period up to ten years begins six or nine
months (depending upon when the student received his/her first Perkins Loan)
after a student ceases to be enrolled at least half-time in any college or
university. During repayment a student will be required to make $30/40 minimum
payments monthly. There is not a penalty for prepayment or accelerated
payments. To assist with timely repayment, a student will be billed monthly.
The college contracts with Academic Financial Services Association (AFSA) for
billing of these loans. Payments should be made as instructed in each
statement. Special circumstances, such as active military duty or Peace Corps
assignment, may defer interest and repayment for an additional period. Portions
of a Perkins Loan may also be canceled if the student borrower teaches in a
school designated as one with a concentration of low-income students, is
employed as a teacher of handicapped children, and in some cases is a full-time
staff member of a Head Start Program. Cancellation of these loans is also
possible for service as a law enforcement officer. The student must file the
required forms with AFSA to qualify for such deferments. To qualify for the
Perkins awards, the student must be a permanent resident or a citizen of the
Federal
A student may qualify for a
“subsidized” Federal Stafford Loan which is based on financial need. The
federal government will pay the interest on the subsidized loan while the
student is in college. The student may qualify for an “unsubsidized” Federal
Stafford Loan, regardless of need. Interest will accrue on unsubsidized loans
during the in-school and repayment periods. A dependent undergraduate student
can borrow up to $2,625 as a freshman and up to $3,500 as a sophomore. An
independent undergraduate student can borrow up to $6,625 as a freshman (at
least $4,000 of this amount must be unsubsidized) and up to $7,500 as a
sophomore (at least $4,000 of this amount must be unsubsidized). An applicant
will complete the FAFSA and institutional application to determine eligibility.
Stafford Loans for first-time borrowers carry a variable interest rate, capped
at 8.25%. A 3% origination fee will be deducted from the student’s loan
proceeds. Repayment is not required as long as the student is enrolled at least
half-time. A student will have a six-month grace period after he ceases to be
enrolled before repayment must begin. The total outstanding loans that a
dependent undergraduate may have cannot exceed $23,000. An independent undergraduate
may borrow up to a total of $46,000.
Federal Parents Loan to Undergraduate Students (PLUS)
A parent may borrow up to the
cost of attendance minus any other financial aid per academic year on behalf of
an eligible dependent student. The applicant does not have to demonstrate
financial need. Application is made by completing Abraham Baldwin’s
Institutional Application for Financial Aid and the FAFSA.
Up to $2,000 is available to
a full-time student. These loans are repayable by service in the State of