Student Loans and Application Procedures
Federal Stafford Loans
Students will be awarded either the subsidized and/or unsubsidized Federal Stafford Loans after they have completed the 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 received a Federal Stafford Loan through the college will need to complete loan entrance counseling and a master promissory note in order to receive these funds. Students who have already received funding at Methodist College from the Federal Stafford Loan program do not need to complete either of these processes and 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.
Additional information about federal student loans and resources can be found at https://studentloans.gov
Stafford Loan Limits
The following chart shows the annual and aggregate limits for subsidized and unsubsidized loans.
|First-Year Undergraduate Annual Loan Limit
||$5,500 - No more than $3,500 of this amount may be in subsidized loans.
||$9,500 - No more than $3,500 of this amount may be in subsidized loans.
|Second-Year Undergraduate Annual Loan Limit
||$6,500 - No more than $4,500 of this amount may be in subsidized loans.
||$10,500 - No more than $4,500 of this amount may be in subsidized loans.
|Third-Year and Beyond Undergraduate Annual Loan Limit
||$7,500 - No more than $5,500 of this amount may be in subsidized loans.
||$12,500 - No more than $5,500 of this amount may be in subsidized loans.
|Graduate or Professional Students Annual Loan Limit
||No Applicable (all graduate and professional students are considered independent)
||$20,500 (unsubsidized only)
|Subsidized and Unsubsidized Aggregate Loan Limit
||$31,000 - No more than $23,000 of this amount may be in subsidized loans.
||$57,500 for undergraduates - No more than $23,000 of this amount may be in subsidized loans.
$138,500 for graduate or professional students - No more than $65,600 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.
The Subsidized Federal Stafford Loan is a low-interest loan made available to students who attend school at least half time. Subsidized Stafford Loans currently have a fixed interest rate of 4.45%. 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.
The Unsubsidized Federal Stafford Loan is a low-interest loan made available to students who attend school at least half time. The interest rate for Unsubsidized Stafford Loans is a fixed 4.45%. 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 a 7.0% interest rate. Borrowers must meet all eligibility criteria, which includes being a U.S. citizen or eligible non-citizen and passing a credit check. Eligible parents can borrow up to the total cost of attendance that is not covered by financial aid.
Alternative/Private Educational Loans are loans offered by many banks or lending institutions. These loans are available to students to assist with their educational expenses. Undergraduate students with a good credit history may be eligible to borrow without a co-signer. Students desiring an alternative or private educational loan must contact the Director of Financial Aid to discuss specific options. Please contact Angela Robinson at firstname.lastname@example.org for more information.