Students and their families may qualify for different loan options to help manage costs and allow repayments over time. Federal loans are borrowed and must be repaid after you graduate, stop attending at least half-time, or withdraw from school. Interest rates are usually lower than commercial loans. To file your FAFSA, please visit studentaid.gov.
Undergraduate Stafford Loans
Blackburn College Loan Philosophy:
Blackburn College offers eligible students Direct Loan amounts up to the total of their direct costs (minus any other financial aid), not to exceed the federal annual loan limits. Students may be eligible for additional loan amounts up to the annual Cost of Attendance, but must submit a request to the Financial Aid Office (email@example.com) to determine any additional loan eligibility.
- FAFSA required
- No credit check
- Students must be U.S. citizens or permanent residents enrolled at least half-time in a qualified program at a participating school
- Not be in default on a prior student loan
- Not convicted of a drug offense while receiving prior federal financial
- Total aid, including student loans, cannot exceed the school’s total cost of attendance (tuition and fees, room and board, transportation, personal and miscellaneous expenses).
- Subsidized loans are need-based loans
- Unsubsidized loans are available regardless of need.
Annual Loan Limits:
- Freshmen – $5,500 (including up to $3,500 subsidized)
- Sophomores – $6,500 (including up to $4,500 subsidized)
- Juniors & Seniors – $7,500 (including up to $5,500 subsidized)
- Freshmen – $9,500 (including up to $3,500 subsidized)
- Sophomores – $10,500 (including up to $4,500 subsidized)
- Juniors & Seniors – $12,500 (including up to $5,500 subsidized)
Aggregate Loan Limits:
- Dependent students: $31,000.
- Independent students (undergraduate): $57,500.
Interest Rates for loans disbursed after July 1, 2022 thru June 30, 2023:
4.99% on Subsidized & Unsubsidized Stafford loans.
- Subsidized loans – You’re not usually charged interest while you are enrolled at least half-time (6 credits or more) and in some deferment periods.
- Unsubsidized Stafford loans – you are responsible for paying the interest during all periods.
Origination Fees: 1.057%
An origination fee is a percentage of your loan amount charged by the lender for the processing of your loan. Federal student loans have an origination fee; therefore, the amount you may receive as a disbursement may be slightly lower than the amount you accept.
Parent Loans (PLUS)
Blackburn College Loan Philosophy:
Blackburn College offers eligible parents Direct PLUS Loan amounts up to the total of the student’s direct costs (minus any other financial aid).
Parents may be eligible for additional loan amounts up to the student’s annual Cost of Attendance, but must submit a request to the Financial Aid Office (firstname.lastname@example.org) to determine any additional loan eligibility.
FAFSA required, available regardless of the need to parents of dependent students (Parent PLUS). Credit check must show no delinquencies in the previous 90 days (some exceptions for extenuating circumstances) and no bankruptcy in the previous five years. The credit requirement can be met by a credit-approved endorser.
Interest Rate for Parent PLUS loans disbursed after July 1, 2022 thru June 30, 2023:
7.54% in the Direct Loan Program
Origination Fees: 4.228%
A loan fee comes out of the amount of money that is disbursed (paid out). This means the money received will be less than the amount that was actually borrowed.
Borrowers are responsible for repaying the entire amount borrowed and not just the amount received.
Interest rates shown above for both student and parent loans are fixed rates. A fixed rate will not change for the life of the loan.
If you have a loan that was disbursed before July 1, 2022, you likely have a different interest rate.