Whether you apply for a grant, student loan or other type of financial aid, all potential borrowers have to complete and file a Free Application for Federal Student Aid (FAFSA). This form can be obtained from a number of sources but most frequently is obtained from the student's high school counseling office or the financial aid office at the college the student plans to attend. You may also file on-line at www.fafsa.ed.gov. Madonna University's Federal School Code is 002282.
The following are the maximum annual loan amounts that can be borrowed through the Federal Stafford Loan Program:
Dependent Students Loan Limits
Dependent Student
Total Sub + Unsub
Freshmen (0-29 credits)
$3,500
Sophomore (30-59 credits)
$4,500
Junior (60-89 credits)
$5,500
Senior (90+ credits)
$5,500
Independent Students Loan Limits
Independent Student
Sub + Unsub
Total
Freshman (0-29 credits)
$3,500 + $4,000
$7,500
Sophomore (30-59 credits)
$4,500 + $4,000
$8,500
Junior (60-89 credits)
$5,500 + $5,000
$10,500
Loan limits may be subject to proration.
Maximum Federal Aggregate Loan Limits
Sub + Unsub
Dependant Undergraduate
$23,000
Independent Undergraduate
$46,000
Graduate Student
$138,500
The aggregate loan limits (both Undergraduate and Graduate/Professional) also include any portion of a borrower's Consolidation loan which was used to repay a Stafford loan.
The loan amount a borrower may receive is determined by subtracting the amount of other financial aid that the borrower will receive from the total cost of attendance for the applicable academic year. In determining subsidized Stafford loan eligibility, the expected family contribution is also subtracted from the cost of education. However, Madonna's Financial Aid Office will certify loan eligibility.
The maximum that may be borrowed may not exceed the student's cost of attendance, as determined by the school of federal rules, minus any financial aid the student has been or will be awarded during the period of enrollment. There are no aggregate limits on these loans.
Again, as with Stafford Loan, Madonna's Financial Aid Office will certify loan eligibility.
The EFC stands for "Estimated Family Contribution". It is calculated by the Federal Government when you file the Free Application for Federal Student Aid. It takes into account such items as your tax information as well as your spouse or parents data if applicable, assets, number in household, number in college.
What is a Stafford Subsidized and Unsubsidized Loan?
A Subsidized Federal Stafford Loan is a loan in which the interest due on the loan is paid by the Federal Government while you are in school, during your 6 -month grace period following cessation of at least half-time enrollment, and for any periods of authorized deferment after you begin repayment.
An Unsubsidized Federal Stafford Loan has all the same terms as the subsidized Federal Stafford loan including deferments, interest rates and loan limits. However, you are responsible for the interest payments while you are in school, during periods of authorized deferments and during your grace and repayment periods.
Federal PLUS loans enable parents or legal guardians with good credit history. If a parent does not posses a good credit history, he/she might be able to qualify for a PLUS loan if someone who can pass the credit check agrees to endorse the loan and sign a promissory note. It is important that the parent(s) contact the Financial Aid Office in regard to obtaining a PLUS loan even if credit seems to be a problem. Sometimes extenuating circumstances can warrant a parent obtaining this loan.
It is important that students check with the financial aid office at MU to comply with deadlines in filing appropriate documents.
What is the interest rate to receive my student loan?
For loans first disbursed on or after July 1, 1994, the interest rate is variable and is determined on June 1 of each year, regardless of whether that borrower has Federal Family Education Loans outstanding. Currently, the interest for these loans may not exceed 8.25%.
The rate is 7.59% for Direct Stafford Loans.
The variable interest rate for a PLUS Loan disbursed on or after July 1, 1994 may not exceed 9%.
When do I have to start payments on my student loan?
Stafford loan borrowers begin repayment after a 6-month grace period. Students enter their grace period after dropping below at least half-time enrollment status from the school they are attending.
On the subsidized Stafford loans the government pays all interest during the grace period. If the students receive unsubsidized Stafford loans, the students are responsible for paying all interest that accrues during the life of the loan. Borrowers having unsubsidized loans may choose to pay the interest payments or allow the interest charges to accrue towards their loans' principal balance.
PLUS loan borrowers begin repayment of their loans within sixty (60) days of the final loan disbursement. There is no grace period for PLUS loans.
