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LoansThe Federal Stafford Loan (subsidized and unsubsidized) and Federal Parent Loan for Undergraduate Students (FPLUS) all come under the umbrella of the Federal Family Education Loans (FFEL) program. Although a student applies with a lending institution, federal loans are certified by the Financial Aid Office, and applicants must meet eligibility requirements. Students must be enrolled for at least six credit hours each quarter and be making satisfactory academic progress as defined by the school. In order to receive a federal student loan, you must complete a FAFSA (Free Application for Federal Student Aid). Without a FAFSA, you will not have access to these loans. Then you must complete a Student Loan Application (PDF) and submit it to the Financial Aid Office. You must also complete a Promissory Note before a loan will be disbursed. This is a legal and binding agreement between you (the borrower) and the lender that contains the terms and conditions of your loan, including how and when the loan must be repaid. By signing this note, the borrower agrees to repay the loan. Then you must complete Entrance Counseling. All loan recipients must complete this counseling session prior to the school disbursing loan funds to you. An Exit Counseling session is also required prior to leaving Clark State either through graduation, withdrawal or transferring. Always use federal loans first because they generally carry lower, fixed interest rates and often have more favorable terms than private loans. If you need to use a private loan, do your own investigating to receive the best rates and benefits. Most loans to students are disbursed via Electronic Funds Transfer (EFT). Funds are applied directly to the student account to pay for any outstanding charges. Any excess loan funds are disbursed to the student (for Stafford loans) or the parent (for Plus loans). You may request to use direct deposit for any refund balance. See Payment Options for details. Types of Loans
Federal Stafford Loan
A "dependent" student is eligible to request a maximum of $5,500 per year for the first year of undergraduate study (of which no more than $3,500 can be subsidized) and $6,500 for the second year (of which no more than $4,500 can be subsidized). An "independent" student is eligible to request a maximum of $9,500 for the first year of undergraduate study (of which no more than $3,500 can be subsidized) and $10,500 for the second year (of which no more than $4,500 can be subsidized). Repayment of these loans will begin six months after the student ceases to be enrolled at least half-time.
Federal Plus Loan Parents may borrow up to the cost of attendance minus any other financial aid. The current interest rate on this loan is fixed at 8.5% for loans disbursed after July 1, 2006. The borrower (parent) is responsible to pay all the interest.  |