General Loan Information
Students interested in the Stafford Student Loan
must complete the Free
Application for Federal Student Aid (FAFSA) to
determine eligibility. The FAFSA form does not have
to be completed if the ONLY form of aid being applied
for is an Alternative Loan or Parent PLUS Loan, if
the student is dependent. All loans come to Methodist
University in two disbursements and are credited directly
to the student's Business Office account.
Methodist University uses ELM to electronically process
all student and parent loans. Once a student's/parent's
loan has been processed, the student/parent can check
on loan amounts and/or disbursement dates by going
Loans: The Federal Stafford Loan Program
This loan program offers loan funds to students of
any income level who are enrolled at least half time
and who are pursuing a bachelor's degree or a teacher's
certificate. These funds may be "subsidized"
or "unsubsidized. The interest rate, usually
a variable rate, is adjusted annually on July 1, not
to exceed 8.25%. The current interest rate for the
2004-2005 academic year is 2.77%.
Subsidized Stafford Loan: This loan
is awarded to students who demonstrate financial need
through the FAFSA. Repayment of this loan is deferred
as long as the borrower remains enrolled on at least
a half-time basis. Six months after the student graduates
or ceases at least half-time enrollment, repayment
of the loan (principal and interest) begins.
Unsubsidized Stafford Loan: This
loan is offered to students who do not demonstrate
sufficient financial need, according to the FAFSA
analysis, but wish to borrow funds for their educational
expenses. The student may make interest payments on
this loan while enrolled on at least a half-time basis.
Repayment on the principal is deferred until six months
after the student graduates or ceases at least half-time
Freshman (0-30 s.h.) $2,625
Sophomore (31-62 s.h.) $3,500
Junior/Senior (63+ s.h.) $5,500
Aggregate Loan Limit = $23,000
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Loans: The Federal Parent Loan for Undergraduate Students
This loan program offers non-need based loans to
assist parents of dependent students. The interest
rate is variable and adjusted annually, based on the
91-day Treasury Bill rate plus 3.10%, capped at 9%.
The maximum FPLUS amount that may be borrowed equals
the difference between the cost of attendance and
any other financial aid the students is receiving.
In no case may the FPLUS loan exceed a student's cost
of attendance minus estimated financial assistance.
These loans are subject to a credit review conducted
by the lender. Applications are available through
our office, your local bank or lending agency. A parent
may complete the application and return it to the
Office of Financial Aid where we will certify the student's
expenses and forward it to the lender of your choice.
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Methodist University offers a wide variety of alternative
loans to help fray the costs of attendance. The interest
rate and maximum amounts vary depending upon the chosen
program. These loans are subject to a credit review
conducted by the lender. Many of them also require
that the student obtain a credit-worthy co-signer.
International students may be eligible to borrow with
a US citizen as a co-signer. Applications and brochures
are available through our office. Students must complete
the application and return it to the Office of Financial Aid where we will certify the student's expenses
and forward it to the lender of your choice. (Click
on the link below to see a listing of the different
alternative loans offered at Methodist University).
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University Preferred Lender List for Federal Stafford
Loans and the Federal PLUS Loan Program
First-time Stafford loan borrowers must complete
Loan Counseling before funds will be disbursed.
You may do this by clicking on Loan Counseling.
Selecting a lender is an important decision for students
and parents. The lender you choose will be a part
of the life of the loan.
|Bank of America
College Foundation, Inc. (CFI)
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