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 are federally regulated funds that are borrowed from a participating lender. These loans have a 6.8% interest rate. 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 2013-2014 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 2013-2014 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 2013-2014 academic year, graduate students* may annually borrow up to:
Unsubsidized Limit Graduate $20,500
* Beginning July 2012 graduate loans are unsubsidized.
Students interested in applying for a Federal Direct Stafford Loan must complete an MPN at studentloans.gov.
Federal Direct Parent PLUS loansThe 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 PLUS loan credit check and a Direct PLUS loan Master Promissory Note (MPN) at studentloans.gov. For detailed instructions on applying for the Federal Direct Parent PLUS loan, Click here.
Direct Graduate PLUS LoansThe 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 LoansAlternative 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.