Financial Aid

Loan Opportunities

Alvernia University wants to simplify the borrowing process for you and your family as much as possible. “Student Loan” is commonly used to describe loans borrowed to pay for a college education. Many different types of student loans exist. Some of these loans are federal loans, meaning the rules and regulations are set by the federal government. Stafford Loans and PLUS Loans are examples of federal loans.

We have included a description of each loan type to help you better understand your options and decide which loan is best for you.

Remember to borrow only what you need. A loan must be paid back.

• Federal Direct Stafford Loans

  Federal Direct Stafford Loans are federally regulated funds that are borrowed from a participating lender. These loans have a 4.5% interest rate for subsidized loans and a 6.8% interest rate for unsubsidized loans. They are subject to a 1-2% origination fee. Subsidized Stafford Loans are awarded on the basis of financial need. The Subsidized Stafford Loan is an interest-free loan while the student is enrolled at Alvernia. Unsubsidized Loans are non-need based. Repayment schedules are the same as the Subsidized  Stafford Loan, but interest will begin accruing after the first disbursement. While it is always important to keep borrowing to a minimum, Stafford Loans are an affordable lending alternative. Stafford Loan limits are as follows:
  
  If you are a dependent, undergraduate student, your loan limits for the 2010-2011 academic year are:
  
  

  	Subsidized Limit	Additional Unsubsidized Limit
  Freshman	$3,500	$2,000
  Sophomore	$4,500	$2,000
  Junior & Senior	$5,500	$2,000

  
  If you are an independent, undergraduate student or if you are a dependent, undergraduate student and your parent is not approved for a PLUS Loan, your loan limits for the 2010-2011 academic year are:
  
  

  	Subsidized Limit	Additional Unsubsidized Limit
  Freshman	$3,500	$6,000
  Sophomore	$4,500	$6,000
  Junior & Senior	$5,500	$7,000

  
  For the 2010-2011 academic year, graduate students may borrow:
  
  

  	Subsidized Limit	Additional Unsubsidized Limit
  Graduate	$8,500	$12,000

          Students interested in applying for a Federal Direct Stafford Loan must complete an MPN at studentloans.gov.

• Federal Direct Parent PLUS loans

  The Federal Direct PLUS Loan for parents is a government-backed, loan with a fixed interest rate. Eligible parents may borrow up to the full annual cost of their child’s education, minus other financial aid received. The PLUS Loan may be deferred, including interest, or may be prepaid at anytime, without any penalty. PLUS Loan credit requirements are typically more lenient than consumer credit requirements. In general, any resolved credit problems are disregarded. To apply for a Federal Direct PLUS Loan, please complete and submit a Federal Direct PLUS Loan Request Form and a Direct PLUS loan Master Promissory Note (MPN) at studentloans.gov.  



• Direct Graduate PLUS Loans

  The Federal Direct PLUS Loan for graduate and professional students (Grad PLUS Loan) can help you cover the full cost of your education, minus other aid received. The Grad PLUS Loan offers flexible credit requirements, a fixed interest rate set by the U.S. government and an easy application process. To apply for a Direct PLUS loan you must complete a PLUS credit check and a Direct PLUS loan Master Promissory Note (MPN) at studentloans.gov . 

• Alternative or Private Loans

  Alternative or Private Loans are not federal student loans. They are consumer loans made available by lenders to assist college students when federal loans are not enough to cover their college expenses. The credit requirements vary by individual lender and most often require a creditworthy co-borrower. Additional information on Private student loans can be found by clicking here or by viewing Alvernia's Recommended Lender List.  If you plan to borrower a Private loan, please be aware that you may need to complete a Self Certification Form for your lender before your loan will be disbursed.    

• An Important Note: Please note that Alvernia University is now participating in the William D. Ford Federal Direct Lending program and will no longer be participating in the FFELP Loan programs in which students and parents borrowed Federal Stafford and Federal PLUS loans through a bank or lender. All borrowers wishing to borrow a Federal Direct Stafford or Federal Direct PLUS loan for the Summer 2010, Fall 2010 or Spring 2011 terms will need to complete a new MPN (Master Promissory Note) online at studentloans.gov. First time borrowers are also required to complete Entrance Counseling which can also be completed at studentloans.gov.