Many students find they must supplement the resources they have to meet the expenses associated with a quality college education through taking advantage of low interest educational loans. These loans differ from a personal loan or home equity loan in that the funds are to be used exclusively for college expenses. Students may borrow in funds under the Federal Stafford Loan Program, even if they have not established a credit record. Repayment on the Federal Stafford Loan is deferred as long as the student is enrolled in college at least ½ time . If additional funds are needed, Alternative Educational loans are available from certain lenders.
Any questions you have regarding Educational Loans may be directed to Kathie Tracy, Veterans Certifying Official and Staff Assistant, at 731-661-6582 or firstname.lastname@example.org.
To apply for any of the following, all students follow the appropriate steps in How to Apply for Financial Assistance. Filing the FAFSA is also required for the Federal Stafford Loan.
The Federal Direct Stafford Loan enables students who are enrolled at least half-time and degree seeking to borrow low interest loans. Payment on these loans begins 6 months after graduation or after a student is no longer enrolled at least half-time.
|Dependent Students:||Independent Students:|
|Freshman $5,500*||Freshman $9,500*|
|Sophomore $6,500*||Sophomore $10,500*|
|Junior and Senior $7,500||Junior and Senior $12,500|
Maximum Direct Stafford Loan amounts for Non-Traditional Programs will vary. The Office of Student Financial Planning will award the maximum amount you are eligible to receive for your Program of Study.
Students must file the Free Application for Federal Student Aid (FAFSA) each academic year to be eligible to apply for the Direct Stafford Loan.
There are two types of Direct Stafford Loans: (The type is determined by the FAFSA results)
In 2013, the interest rates on Stafford loans (subsidized and unsubsidized) are 3.86%. An origination fee, up to 1.051%, will be deducted by the Department of Education prior to disbursement of the Stafford loan.
A Federal Direct Stafford Loan Master Promissory Note (MPN) and entrance counseling must be completed the first time you apply for a loan at Union. The MPN is valid for up to 10 years. You are able to E-Sign the MPN at www.studentloans.gov and complete entrance counseling at www.studentloans.gov.
Loan funds are normally disbursed in equal installments. If the student has met all federal requirements, loan funds are credited to their account within 3 days after the funds are received. If a student is due a credit refund, it will be direct deposited to the bank account the student set up via Web Advisor. See our Schedule of Loan Refund Dates.
This is a non-federal educational loan available through private lenders. The loan is borrowed by the student but generally requires a co-signer. The interest rate is variable and is set by the individual lender. Information regarding lenders that offer alternative loans is available online using Union's Online Lender List.
Priority deadline means the following documents have been submitted to the Office of Student Financial Planning by the appropriate date listed below.
Students must also be accepted to Union University by the priority deadline before any financial aid can be awarded.
|Cohort or Regular Term Start Date||Priority Deadline Date|
|January, February, or March||November 15|
|April or May||February 1|
|June, July, or August||April 15|
|September or October||July 15|
|November or December||September 1|
Data submitted by students after the priority deadline associated with their program of study will be processed as time allows. Funds may not be available at the start of the program.
If a student’s aid is not processed at the time of registration, the institution may require that payment be made or alternate payment arrangements be made in order to register for classes.
For the Subsidized Stafford Loan, the federal government pays the interest for the student while he is in school at least half time, and during the 6 month grace period before repayment begins. For the Unsubsidized Stafford Loan, the student is responsible for the interest while in school. The interest can be paid on a quarterly basis while the student is in school, or can be capitalized (that is rolled into the principle) and payment deferred.
The Master Promissory Note (MPN) is a Serial Note for the Federal Stafford Loan or Federal PLUS, valid for up to 10 years. Once a student has signed an original Master Promissory Note with Direct Loan, a new MPN will not be required for subsequent years unless there is a change in the lender. There is also a Master Promissory Note for the Federal Perkins Loan, held by Union University.
The College Cost Reduction and Access Act of 2007 gradually reduced the fixed interest rates on newly originated subsidized Stafford loans for undergraduate students to 4.5% (2010-11) and 3.4% (2011-12); however, the rate will return to 6.8% in 2012-13. These reductions are available only to undergraduate students, not graduate students, and only for subsidized Stafford loans, not unsubsidized Stafford loans. Unsubsidized Stafford loans remain at a fixed rate of 6.8%.
Federal Graduate PLUS Loan rates are 8.5% and rates on Alternative Loans are based on creditworthiness and vary with each lender.
Students will be notified in an Award Letter of the amount(s) each academic year. If the student wants to decline or lower the amount, they should indicate such changes on the Award Letter, sign it, and return it to the Office of Student Financial Planning.
The Office of Student Financial Planning will notify the student by email when the funds are credited to your Student Account. Federal regulations require that funds be credited to the student within 3 days after funds are received. Note that first-time borrowers must complete Entrance Counseling before funds will be awarded and credited to their student account.
In order to ensure that every federal loan borrower understands completely the loan program, the federal government requires first time borrowers at Union to complete entrance counseling before funds can be credited to the student’s account. After completion of online entrance counseling, the Office of Student Financial Planning will be notified by email, and your funds will be disbursed. This applies to Federal Stafford, Perkins, & Grad PLUS loans.
Students who have a credit balance on their student account as a result of loan funds will receive a direct deposit to the bank account the student set up via Web Advisor. Funds are normally available 14 days after the credit balance occurs. See our Schedule of Loan Refund Dates.
Repayment of a Federal Stafford Loan begins 6 months after the student obtains his degree or ceases to be at least a ½ -time student.