Student Loans

Federal Direct Stafford Loan Program

Loans are available to undergraduate and graduate students enrolled at least half time in a degree or certificate program. The Federal Direct Stafford Loan program enables students to borrow from, and repay loans directly to, the U.S. Department of Education through its servicing centers.

Federal Direct Stafford Loans offers a fixed interest rate.  For the 2007-08 year the rate is 6.8%.  It is adjusted each year on July 1 according to the Treasury Bill. A 1.0% origination fee is automatically deducted from the loan amount prior to disbursement.

There are two types of Federal Direct Stafford Loans: subsidized and unsubsidized. Subsidized loan amounts are based on federal financial need, grade level, and cost of attendance. The federal government pays the interest on a subsidized loan while the student is enrolled in school for at least 6 credits, during grace periods and during authorized deferment periods. However, with an unsubsidized loan, the student is responsible for the interest while enrolled in school, during grace periods and during authorized deferment periods. During this time, students may either pay the accumulating interest or capitalize the interest. Capitalization means the unpaid interest is added to the principal balance of the loan.

Maximum Annual Loan Limits

Grade Level	Dependent Student	Independent Student
	Sub/Unsub	Sub + Unsub = Total
Freshman	$3500	$3500 + 4000 = 7500
Sophomore	$4500	$4500 + 4000 = 8500
Junior	$5550	$5500 + 5000 = 10500
Senior	$5500	$5500 + 5000 = 10500
Graduate	N/A	$8500 + 12000 = 20500

Maximum Aggregate Loan Limits

Dependent Undergraduate	$23,000
Independent Undergraduate	$46,000 with a subsidized maximum of $23,000
Graduate	$138,500* - with a subsidized maximum of $65,500* *Includes undergraduate loans

 

Federal Perkins Loan

This federally funded loan program offers a low interest rate (5%) to undergraduate and graduate students enrolled at least half time in a degree program. Funding is limited and recipients are selected on the basis of demonstrated financial need. Repayment begins 9 months after the student graduates, withdraws from the University, or drops to less than half-time attendance. Recipients must sign a promissory note with the Student Accounts Office before the loan will be posted to the student’s tuition account. Federal Perkins Loan limits are as follows:

 

	Per Year Aggregate	Total Aggregate
Undergraduate	$3,000	$15,000
Graduate	$5,000	$30,000* *Includes Undergraduate loans

Suffolk University President’s Incentive Loan/Grant

This program is awarded to full-time undergraduate students. Initially awarded as a loan, this loan/grant need not be repaid if the student graduates from Suffolk University. Recipients are selected on the basis of demonstrated financial need and merit. (Recipients must sign a promissory note with the Student Accounts Office.)

Requires full-time enrollment

Suffolk University Low Interest Loan Program:

This institutionally funded loan program is available to full and part-time undergraduate and graduate students. The maximum award is $2500 per academic year and awards are renewable. A promissory note must be completed before the loan proceeds will be applied to the student’s tuition account.

Suffolk University Emergency Loan Program

This short-term loan program is available to full and part-time undergraduate and graduate students who encounter emergency situations. Applicants must be able to document in writing the unexpected circumstances surrounding the hardship. Amount of loan may not exceed $500 and must be repaid within 90 days. Emergency loans are not available to students with a tuition balance.

Requires separate application

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Parent Loans

Federal Direct Parent PLUS Loan

The Federal Direct PLUS Loan program enables parents to borrow from, and repay loans directly to the U.S. Department of Education through its servicing centers. PLUS Loans offer a variable interest rate, which will never exceed 9%. It is adjusted each year on July 1 according to the Treasury Bill. A 2.5% origination fee is automatically deducted from the loan amount prior to disbursement. Parents may borrow up to the cost of education less financial aid received. Repayment begins 60 days after the loan is fully disbursed.

If the parent of a dependent student is denied the PLUS Loan, the dependent student may receive additional unsubsidized loan funding. The maximum eligibility is $4,000 for freshman/sophomore class levels, and $5,000 for junior/senior class levels.

For PLUS Loan pre-approval complete the Direct PLUS Loan Request Form and fax or mail to the Office of Financial Aid.

Requires separate application

MEFA Loan

The MEFA Loan is offered through Suffolk University by the Massachusetts Education Financing Authority ( MEFA ). It is open to students enrolled at least half time in a degree program. Loan approval is based on creditworthiness and undergraduate students must apply with a parent or other credit worthy co-borrower. The MEFA Loan offers two interest rate options, a variable rate and a fixed yearly rate. Repayment begins immediately, and families may borrow up to the student’s cost of education less financial aid received. Graduate students may apply without a co-borrower, have a fixed interest rate, and can choose to defer payments while enrolled.

Requires separate application

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Private Student Loans

The following companies offer private educational loan programs to assist students in meeting the costs of higher education after other sources of financial aid and family resources have been exhausted. The loans are credit based, and therefore may require the student to borrow with a creditworthy co-signer.

For more information, or to apply for any of these loans, click the links below to go to the company’s web site.

CitiAssist Loan

Offered by CitiBank, the CitiAssist loan provides funding to full-time, part-time, less than part-time, and non-degree undergraduate and graduate students.

Key Alternative Loan

Key Education Resources offers the Key Alternative Loan to undergraduate and graduate students enrolled at least half-time in a degree program.

All require separate applications

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Entrance/Exit Counseling for Stafford Borrowers

The Office of Financial Aid is required by law to provide Entrance and Exit Loan Counseling for Federal Stafford Loan borrowers. If you are a new borrower, entrance counseling must be completed before loan proceeds can be credited to your tuition account. If you withdraw from the University, take a leave of absence, or graduate, you must complete exit counseling. Entrance and Exit counseling is conducted at the Office of Financial Aid. You may also complete either your entrance or exit counseling online.

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Deferment, Repayment, and Consolidation

Federal Direct Stafford Loan borrowers can visit the Department of Education’s Direct Loans Online site for general account information, repayment options and monthly payment calculators, as well as downloadable deferment forms. This site also links to the Direct Loan Consolidation and National Student Loan Data System (NSLDS) websites.

To access most of the above features, you will need to use your Department of Education PIN - Personal Identification Number. PIN’s are distributed to students when they file the FAFSA. If you did not receive a PIN or can’t remember yours, you can obtain a new one at the same site.

Remember, it is the student’s responsibility to obtain all deferment information and file the required forms with the appropriate office or agency.

 

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