Federal loans are borrowed and must be repaid, generally after you are no longer in school, have dropped below half-time, or have graduated. Interest rates are usually lower than commercial loans.
Basic Eligibility Requirements:
Recipients must be U.S. citizens or permanent residents enrolled at least half time in a qualified program at a participating school, not in default on a prior student loan, and not convicted of a drug offense while receiving prior federal financial aid. Total aid, including student loans, cannot exceed school’s total cost of attendance (tuition and fees, room and board, transportation, personal and miscellaneous expenses).
To file your FAFSA, please visit www.fafsa.ed.gov.
Undergraduate Stafford Loans
Eligibility:
FAFSA required, no credit check and cannot be in Default on any previous Stafford Loans. Subsidized loans require financial need; unsubsidized loans are available regardless of need.
Blackburn College Loan Philosophy:
Annual Loan Limits:
- Dependent students: $5,500 as freshmen (including up to $3,500 subsidized); $6,500 as sophomores (including up to $4,500 subsidized); $7,500 as juniors and seniors (including up to $5,500 subsidized).
- Independent students: $9,500 as freshmen (including up to $3,500 subsidized); $10,500 as sophomores (including up to $4,500 subsidized); $12,500 as juniors and seniors (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, 2020 thru June 30, 2021:
2.75% on Stafford loans. On subsidized loans, no interest is accrued while you are enrolled at least half time(6 credits or more) and in some deferment periods; in repayment, the rate is 2.75% for undergraduate students.
Origination Fees: 1.057%
Parent Plus or Graduate Plus Loans
Eligibility:
FAFSA required, available regardless of 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 an Endorser.
Blackburn College Loan Philosophy:
Interest Rate for loans disbursed after July 1, 2020 thru June 30, 2021:
5.30% in the Direct Loan Program
Origination Fees: 4.228%