Student Loan Programs
Federal Direct Stafford Loan
Brief description: The Federal Direct Stafford Loan is a low-interest, long-term educational loan available to students. Loan capital is supplied directly by the federal government. The federal government also serves as the guarantor. There are two different forms of this loan: the Federal Direct Subsidized Stafford Loan and the Federal Direct Unsubsidized Stafford Loan. If you show demonstrated financial need based on the information from your FAFSA, your loan may be subsidized -- that is, the federal government will pay the interest on the loan as long as you are in school. If you do not qualify for the subsidy on a need basis, you can still borrow the maximum $3,500 under the Unsubsidized Stafford Loan Program. In this program, interest is not subsidized, and you must begin repayment of this interest while you are in school. Repayment of the principal is deferred until after you leave school. College Cost Reduction and Access Act Of 2007 extended the Stafford Loan limits so that all students can borrow an additional $2000 in unsubsidized Stafford.
Maximum amount you can borrow:
First year - $3,500
Second year - $ 4,500
Third year-graduation - $5,500
Four-year total - $19,000
Interest rate: Interest rates are fixed at 6.0% for subsidized loans and 6.8% for unsubsidized loans.
Repayment terms: Repayment to the Department of Education, through the Direct Loan Servicing Center, begins six months after you graduate or leave school. You may extend your repayment period beyond 10 years.
For more information: To learn more about Stafford Loans, sign a promissory note or complete an entrance interview visit the Direct Loan Servicing site. If you have a Stafford Loan and are looking for payment information, link to the Direct Loan Web site.
Federal Perkin Loans
Brief description: A limited, low-interest program for students with exceptional financial need. Perkins Loans made to Holy Cross students are administered by the Bursar's office. Once you're at Holy Cross, you'll work closely with the Perkins Loan Coordinator.
Amount you can borrow: Up to $16,000 over four years.
Interest rate: 5%
Repayment terms: Repayment begins when your grace period -- discussed on your promissory note -- ends. You have up to 10 years to repay the loan in full.
For more information: See the Bursar's page on Perkins Loans.