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.

• Stafford Loans

  Stafford Loans are federally regulated funds that are borrowed from a participating lender. These loans have a 5.6% 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 2009-2010 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 2009-2010 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 2009-2010 academic year, graduate students may borrow:
  
  

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




• Parent PLUS loans

  The Federal PLUS Loan for parents is a government-backed, loan with a fixed interest rate of 8.5%. 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.



• Grad PLUS Loans

  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.

• Alternative or Private Loans

  Alternative or Private Loans are not federal student loans. They are consumer loans created by lenders to help 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 these loans can be found at www.elmselect.com/alvernia.