Student Loans
Application Procedures
Federal Stafford Loans
Students will be awarded either the Subsidized and/or Unsubsidized Federal Stafford Loans after they have completed the appropriate Free Application for Federal Student Aid (FAFSA). Methodist College will send an award letter that includes the amounts of these and any other available funds. Students who have never had a Federal Stafford Loan through the college will need to complete the online application process and entrance loan counseling in order to receive these funds.
Please click here to complete the application for the Federal Stafford Loan.
Students who have already received funding at Methodist College from the Federal Stafford Loan program do not need to complete either of these processes. A student who has already received Federal Stafford Loan Program funds at Methodist College will automatically be certified for the amounts on their award letters. Loan amounts may change at the request of the student or if other funding is received in place of these funds.
Alternative (Private) Education Loans
Students desiring an Alternative Education Loan need to contact the Coordinator of Financial Aid to discuss specific options. Please contact Angela Robinson at
for more information.
Stafford Loan Limits
Independent and Dependent Undergraduate Students (as of
July 1, 2008)
Subsidized Stafford Loan annual limits are:
-
Freshmen (0 – 30 hours)
-
Sophomore (31-57 hours)
-
Junior and Senior (58 hours and up)
|
$3,500
$4,500
$5,500
|
Dependent
Undergraduate Student may borrow a total of $2000 in unsubsidized funds
annually. This limit does not change by
class level.
Independent
Students may borrow $6000 annually in unsubsidized funds during their freshman
and sophomore years. The limit increases
to $7000 during the junior and senior years.
| Total annual loan limits: |
|
Dependent |
Independent |
| Freshman |
$5,500 |
$9,500 |
Sophomore
|
$6,500 |
$10,500 |
| JR/SR |
$7,500
|
$12,500 |
Loan Descriptions
Subsidized Federal Stafford Loans is a low interest loan, made available to students that attend at least half-time. Subsidized Stafford Loans currently have a fixed interest rate of 6.8%, but the interest rate decreased to a fixed 6.0% as of July 1, 2008. Only students who demonstrate financial need qualify for the subsidized loan. As the name implies, the federal government pays the interest while you are still in school as at least a half-time student, throughout the six-month grace period and during periods of deferment.
The Unsubsidized Federal Stafford Loan is a low interest loan, made available to students that attend at least half-time. The interest rate for Unsubsidized Stafford Loans is a fixed 6.8%, and did not change on July 1, 2008. Eligibility for an unsubsidized loan does not require financial need, and the interest starts accruing when the loan is disbursed.
The Federal Parent Loan for Undergraduate Students (PLUS) is available to the Parents of Dependent Undergraduate students at an 8.5% interest rate. Applicants and repayment information are available through participating lenders. Borrowers must meet all eligibility criteria, which include being a US citizen or eligible non-citizen. Eligible parents can borrow up to the cost of attendance that is not covered by financial aid.
Alternative Education Loans are unsubsidized student loans offered by many banks or lending institutions. These loans are available to students to assist in their educational costs. Undergraduate students with good credit histories may be eligible to borrow without a co-borrower.
