In order to be eligible for the Federal Student Loan Program (Stafford, formerly GSL—Guaranteed Student Loan), students must be enrolled in a program leading to a graduate degree and must file the Free Application for Federal Student Aid (FAFSA), listing Bluffton as one of the recipients. The federal school code for Bluffton is 003016. Students are encouraged to file the FAFSA electronically at www.fafsa.ed.gov. A FAFSA web application worksheet is available from the www.fafsa.ed.gov website or from the Bluffton Office of Adult and Graduate Education.
Loan certification is completed in a timely manner by a Bluffton Financial Aid Administrator (FAA) in relation to the enrollment periods of graduate programs in business. Certification occurs only after a student is fully accepted into the program and only after required documentation (which may include verification of the data provided on the FAFSA) is on file in the Financial Aid Office. After determining aid eligibility, the Bluffton Financial Aid Office advises students on how to borrow under this program. An entrance interview, coordinated and documented by the Financial Aid Office, is required for all Stafford loan recipients the first time they borrow at Bluffton—before delivery of the loan proceeds. This entrance interview can be completed on-line at: www.bluffton.edu/admission/financialaid/loans/graduate/.
Students with current balances on previous Stafford/GSL loans should stay with their original lender as any new Stafford loans will be merged with previous loans. To expedite loan certification, students need to research and have available their previous lender, lender code number, and guarantee agency.
Details on loan information and how to apply are available here.
Federal Stafford Student Loan (Subsidized)—see below for terms
A subsidized Federal Stafford Loan is based on financial need as determined by the results of the FAFSA. Repayment of the principal is deferred and the federal government pays the interest while students are in graduate school, during their grace period and during any authorized deferment periods.
Federal Stafford Student Loan (Unsubsidized)—see below for terms
An unsubsidized Federal Stafford Loan is not need-based (must still file the FAFSA)—this means that students at any income level can receive this loan. Repayment of the principal is deferred, but students are responsible for the interest on the loan while in school, during the grace period and during any authorized deferment periods. Students can choose to postpone payment of interest while in school and during the grace period resulting in the interest being added to the principal amount borrowed at the time of repayment.
Loan Fees
For 2007-2008, all origination fees for Stafford loans have been waived. These fees will be covered by the lenders on Bluffton’s preferred lender list. Student’s have the option of choosing a lender not on the preferred list, but origination fees might be assessed. Also, a newly mandated 1% Federal default fee will be covered by the state guarantor, Great Lakes Higher Education Corporation (GLHEC). These fee waivers mean that 100% of a student’s request of an eligible loan amount will be disbursed to the student’s account. The fee waiver benefit for the Federal Stafford loan program is provided at the discretion of the lender/GLHEC and is subject to change.
Alternative Educational Loans
Non-federal loan alternatives do exist for students who do not wish to file the FAFSA or who are unable to cover the cost of attendance with traditional Federal Stafford Loans. Interest rates on these loans are generally higher than those for the Federal Stafford program. Students have the option of making interest only payments while in school or having the interest added to the principal of the loan. Contact the Financial Aid Office to receive information regarding alternative educational loans.
Students may also check with their bank or other lender for possible home equity loans that may be available with tax deductible interest.
|
|
Subsidized Stafford |
Unsubsidized Stafford |
Alternative |
|
Program Type |
Federal |
Federal |
Private (Non-Federal) |
|
FAFSA required? |
Yes |
Yes |
No
|
|
Fixed Interest Rate for all loans disbursed after July 1, 2006 |
Fixed rate of 6.8% |
Fixed rate of 6.8% |
Varies by lender. May be determined by borrower’s credit score. |
|
Variable Interest Rate
remains in effect for all prior loans |
Rates are calculated on a 91-day T-bill plus 1.7% (for in school and grace) or 2.3% (in repayment). Rates are adjusted each July 1 and capped at 8.25%. |
Rates are calculated on a 91-day T-bill plus 1.7% (for in school and grace) or 2.3% (in repayment). Rates are adjusted each July 1 and capped at 8.25%. |
Varies by lender. May be determined by borrower’s credit score. |
|
Origination Fee |
None |
None |
Varies by lender |
|
Loan Maximum per year |
$8,500.00* |
$20,500.00* (less any Subsidized |
Cost of Attendance minus other aid received* |
|
Co-signer required? |
No |
No |
No |
|
Grace period |
6 months |
6 months |
Usually available – varies by lender |
|
Repayment period |
10 years |
10 years |
Usually 10-20 years – varies by lender |
*Not to exceed cost of education minus any other financial aid received (e.g. employer reimbursement).
Employer Assistance
An increasing number of employers provide educational assistance benefits to their employees. Students should check to see if their employer provides such benefits.
For further information contact the Financial Aid Office at 1-800-488-3257, (option 2), or 1-419-358-3266
