Methodist College

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 the online application process and entrance loan counseling 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 students loans and resources can be found at www.studentaid.ed.gov.

Alternative (Private) Education Loans

Students desiring an alternative education loan must contact the Coordinator of Financial Aid to discuss specific options. Please contact Angela Robinson at arobinson@methodistcol.edu for more information. 

Stafford Loan Limits

Subsidized Stafford Loan annual limits for independent and dependent undergraduate students (as of July 1, 2008):

Freshman (0 - 30 hours) 

$3,500 

Sophomore (31 - 57 hours)

$4,500

Junior (58 hours and up)

 $5,500

Dependent undergraduate students may borrow a total of $2,000 annually in unsubsidized funds. This limit does not change by class level. Independent students may borrow $6,000 annually in unsubsidized funds during their freshman and sophomore years. The limit increases to $7,000 during the junior and senior years.

Total Annual Loan Limits:

 

 Dependent

 Independent

Freshman 

$5,500 

$9,500 

 Sophomore

$6,500

$10,500

Junior/Senior

$7,500

$12,500 

Loan Descriptions

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 3.76%.  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 who attend school at least half time. The interest rate for Unsubsidized Stafford Loans is a fixed 3.76%.  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 6.31% interest rate. Applicants and repayment information are available through participating lenders. Borrowers must meet all eligibility criteria, which includes being a U.S. citizen or eligible non-citizen. Eligible parents can borrow up to the total 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 in order to assist with their educational expenses. Undergraduate students with good credit history may be eligible to borrow without a co-borrower.

For repayment options and costs, please visit the Federal Student Aid Student Loans website at www.studentloans.gov.