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Federal Unsubsidized Stafford Loan

This loan program offers low-interest loans to students who demonstrate little or no "financial need." The terms and loan limits are the same as for the Federal Subsidized Stafford Loan except that the federal government does not pay interest on the borrower's behalf while the borrower is enrolled in school. During that time, the student borrower can choose either to make quarterly interest payments or to "capitalize" interest. "Capitalizing" interest means the lender will add interest accrued to the principal balance. This will eliminate the need for interest payments while in school. Independent students are also eligible to borrow Federal Unsubsidized Stafford Loans. Students may borrow up to a maximum of $4,000 per academic year for the first and second years, and $5,000 per year for the third and fourth years. These amounts are in addition to the Federal Subsidized/Unsubsidized Stafford Loan amounts discussed above.

The Parent Loan Program for Undergraduate Student (PLUS)

The Federal PLUS Program provides loans to parents of dependent students to attend college. PLUS borrowers do not have to demonstrate need, but are subject to a credit analysis by the lending institution. The parent applying for the loan must fill out a PLUS Master Promissory Note as well as a Loan Amount Request Form. Repayment of this loan must begin within 30 days of the time the loan is fully disbursed. The borrowing limit is the total cost of attendance, minus any financial aid being received. Applications for these loans are available during the Financial Planning Appointment.

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