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Loans
The Federal Stafford Loan (subsidized and unsubsidized) and Federal
Parent Loan for Undergraduate Students (FPLUS) all come under the umbrella
of Federal
Family Education Loans (FFEL).
Although a student applies through his or her lending institution, FFELs are
certified by the Financial Aid Office. An applicant must meet eligibility requirements.
For parents
interested in a Federal PLUS loan you can apply and be pre-approved online.
All recipients of Federal Stafford must participate in an entrance
counseling session before loan checks are issued. Recipients will need to complete a promissory note through Sallie Mae to finalize the process. An exit
interview is required prior to leaving Clark State, graduating or at the end of each academic year for continuing students.
Federal Stafford Loan Program
The Federal Stafford Loan Program is designed to assist a student with low
interest educational loans.
A student is eligible to request a maximum of $7,500 per year for the first
year of undergraduate study and $8,500 for the second year. Repayment of the
loan will begin six months after the borrower ceases to be enrolled as at least
a half-time student (six credit hours). The interest rate is variable, but
is capped at 8.25 percent. Beginning in the 2006-2007 academic school year, the interest rate will be fixed and possibly adjusted on an annual basis.
The interest for the Federal Stafford Subsidized Loan is paid by the federal
government while the borrower is in school. Once the borrower has entered the
repayment period, interest will begin to accrue.
The interest on a Federal Stafford Unsubsidized Loan is paid by the borrower
while still in school, unless a deferment is granted.
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