Federal Loans and Work Study Programs
Federal Subsidized Stafford Loans
Subsidized Stafford loan award amounts are based on the student's demonstrated financial need. The federal government pays the student's interest charges while the student is enrolled at least half time as well as during the six-month grace period following enrollment. Repayment and interest begin six months after the borrower graduates or ceases to be at least a half-time student and extends over the 10-year repayment period. The interest rate is fixed at 6.8 percent, and the maximum annual limit is $8,500.
Federal Unsubsidized Stafford Loans
The Unsubsidized Stafford loan is awarded to students regardless of financial need. The in-school interest is not paid by the federal government and begins to accrue after disbursement of the loan funds. The student may choose to have the payment of the interest deferred during enrollment and later capitalized (added to the principal) at the time repayment begins. Repayment begins six months after the borrower graduates or ceases to be at least a half-time student and extends over a ten year repayment period. The interest rate is fixed at 6.8 percent, and the annual limit is $12,000.
Federal Grad PLUS Loans
In 2006, the parent PLUS loan program was expanded to include graduate/professional students. Under this program, credit worthy students may borrow from this federal guaranteed,
non need-based loan program. The student can borrow the entire cost of education minus any financial aid the student receives. The in-school interest is not paid by the federal government and begins to accrue after disbursement of the loan funds. The student may choose to have the payment of the interest deferred during enrollment and later capitalized (added to the principal) at the time repayment begins. Repayment begins six months after the student graduates or ceases to be at least a half-time student and extends over a ten year period. The loan has a fixed interest rate at 8.5 percent.
Federal Perkins Loan
The federal Perkins loan program is a limited, revolving source of loan funds offered through the school. Funds for this program are from prior recipients repaying their loans. These low interest loans are intended to help needy students pay for education. Perkins loans carry a fixed 5 percent interest rate for the life of the loan and are subsidized, which means you don't accrue interest on the loan until you enter repayment. Repayment begins nine months after you graduate or drop below half-time enrollment status and there is a ten-year repayment period.
Federal Work Study Program
Students awarded work study as part of their financial aid package are limited to a 20 hour work week during the semester. Awards are based on a reasonable projected amount that the student might earn over the course of the semester in an on-campus job. Work study is offered to those students who demonstrate financial need and provides a source of supplemental income thus reducing the amount of loan that needs to be borrowed. First year JD students are not eligible for work study on the recommendation of the ABA.
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