Types of Aid - Student Loans - Pittsburg State University

General Loan Information

Federal need-based loans are awarded to students on the basis of financial need, and include the Federal Perkins Loan, Federal Direct Subsidized Stafford Loan and the Nursing Student Loan. Students are awarded need-based loans as part of their financial aid packages. Repayment is deferred and there is no interest accrual on need-based loans as long as the student is enrolled at least half-time (6 hours).

Non-need-based loans include the Federal Direct Unsubsidized Stafford Loan and the Federal Direct PLUS loan. Federal Direct Unsubsidized Stafford Loans are awarded to students as part of their financial aid packages, while Federal Direct PLUS Loans are not. (See additional information below.) Repayment is deferred as long as the student is enrolled at least half-time, and interest begins accruing immediately on non-need based loans. Interest may be paid periodically or capitalized (added to the balance when you enter repayment).

The PLUS loan is intended to assist those families who are ineligible for other types of financial aid, have remaining financial need after other forms of aid have been awarded, or wish to borrow all or part of the EFC. The borrower in this program is the parent of a dependent undergraduate student, and must apply for the PLUS loan each academic year. Repayment of principal and interest for PLUS Loans begins 60 days after the last loan disbursement of the academic year for which the loan was granted. Contact the OSFA for the required forms, or access them online under the PLUS Applicants link.

The maximum that can be borrowed each year is the cost of education minus all other financial aid awarded.

    PLUS Eligibility Example


Cost of Attendance/Budget

$16,528

Total Financial Aid Awards

-12,000

PLUS Loan Eligibility

$ 4,528

LOAN PROGRAM	ELIGIBLITY	INTEREST RATE	TERMS	MAXIMUM ANNUAL AWARD
Federal Perkins	Need based Undergraduate and graduate students Must be enrolled full-time in a degree or certificate program Application materials received by priority deadline of March 1	Fixed rate of 5%	No interest accrual & repayment deferred while student is enrolled at least half-time Nine-month grace period before repayment begins Lender is PSU-Contact PSU Cashiers and Student Accounts for repayment information	$2,500-$4,000
Nursing Student Loan	Need based Must be admitted to the Clinical Nursing Program (Juniors and Seniors) Application materials submitted by priority deadline of March 1	Fixed rate of 5%	Federal government pays interest and repayment is deferred while student is enrolled at least half-time	$2,500
Federal Direct Subsidized Stafford	Need based Undergraduate and graduate students Must be enrolled at least half-time in a degree or certificate program	Graduate Students Fixed rate of 6.8% For Undergraduates: Fixed rate of 6.8% for loans disbursed 7/1/06-7/1/08 Fixed rate of 6.0% for loans disbursed for 2008-2009 Acad. Yr. Fixed rate of 5.6% for loans disbursed for 2009-2010 Acad. Yr. Fixed rate of 4.5% for loans disbursed for 2010-2011 Acad. Yr.	Federal government pays interest and repayment is deferred while student is enrolled at least half-time	Freshman $3,500 Sophomore $4,500 Junior/Senior $5,500 Graduate $8,500
Federal Direct Unsubsidized Stafford	Non-need-based - Cost of Attendance (COA) less other aid Undergraduate and graduate students Must be enrolled at least half-time in a degree or certificate program	Fixed rate of 6.8% for loans disbursed after July 1, 2006 Variable rates for loans first disbursed between July 1, 1998 and June 30, 2006	Interest accrual begins upon disbursement of funds - may be paid periodically or capitalized Repayment is deferred while student is enrolled at least half-time	Freshman $3,500 Sophomore $4,500 Junior/Senior $5,500 Graduate $8,500
Federal Direct Additional Unsubsidized Stafford	Non-need-based - Cost of Attendance (COA) less other aid Undergraduate and graduate students Must be enrolled at least half-time in a degree or certificate program	Fixed rate of 6.8% for loans disbursed after July 1, 2006	Interest accrual begins upon disbursement of funds - may be paid periodically or capitalized Repayment is deferred while student is enrolled at least half-time	Undergraduate Dependent Students $2,000 Undergraduate Independent Students, and Dependent Students whose parents are not eligible for PLUS $6,000-$7,000
Federal Direct PLUS	Non-need-based - Cost of Attendance (COA) less other aid Parents of dependent undergraduate students enrolled at least half-time in a degree or certificate program - must not have negative credit history	Current rate of 7.9%	Separate application required Repayment of principal and interest begins 60 days after final loan disbursement for the respective academic year	Contact the Office of Student Financial Assistance 620-235-4240
Alternative Loans	Non-need-based - Cost of Attendance (COA) less other aid Undergraduate and graduate students enrolled at least half-time in a degree or certificate program	Rate determined by the lending institution and the borrower's credit rating	Separate application to lender required	Contact the Office of Student Financial Assistance 620-235-4240

For special deferment and cancellation provisions for Stafford and Perkins loans, see the U.S. Department of Education's Student Guide (page 31), Deferments and Forbearances, and the Department of Education's Cancellation/Deferment Options for Teachers.

Loan Disbursement Information

Loan funds are disbursed at the beginning of each semester. First-time PSU borrowers, and PSU borrowers who previously had FFELP (bank lender) loans must complete Entrance Interview Counseling and e-sign a Master Promissory Note (MPN) with the Department of Education , prior to the disbursement of funds. All borrowers must also verify enrollment online through GUS.

(If you previously attended another college/university and had a Direct Loan there, you may not need to complete a new MPN.)
Repaying Your Loans

You may visit Federal Student Aid on the Web for information on loan consolidation and repaying your student loans. Please view additional information regarding Direct Loans. The Federal Guide to Student Aid also provides repayment information, and a Direct Loan repayment calculator.

You may also contact your loan servicer or lender for information regarding loan-repayment options. If you do not know who your loan provider/servicer is, please consult the National Student Loan Data System.
Student Loan Consolidation Information
Loan Repayment Charts

Remember to borrow only the amount you need. What you borrow today must be paid back after you graduate or withdraw from college (with interest)! You may not need to borrow as much, if at all, if you are able to cut personal expenses and/or work on- or off-campus while you attend PSU. Many students wisely maintain a lower-cost student lifestyle in order to borrow the least amount necessary to cover their college expenses. The result is lower debt and more manageable loan payments once you graduate.

You may refer to the General Loan Repayment Charts below to see how loan funds borrowed today affect the amount you will owe once you graduate or withdraw from school.
Glossary of Loan Terms
Student Loan Code of Conduct

	Cost of Attendance/Budget	$16,528
	Total Financial Aid Awards	-12,000
	PLUS Loan Eligibility	$ 4,528