Please follow this link (studentaid.gov) for current interest rate information.
Federal Direct Stafford Loans for graduate students
The Federal Direct Loan program
allows graduate students to borrow up to $20,500 a year without demonstrating financial need. Applicants must file the FAFSA (note: grad students file as independent) and SBU's Student Loan Request Form to receive the loan. Starting in July 2012,
new Graduate Stafford loans are not eligible for subsidized interest. This means that interest on the loan principal will accrue while the grad student is enrolled. The exception to this is that students pursuing a program leading to state-issued
teacher certification may receive an interest subsidy.
Loan repayment begins six months after the borrower ceases study or drops below half-time status.
Stafford Loan proceeds are paid through a student’s school in two
or more installments, and are first applied against tuition and fees, room, board and related school charges. If loan money is left over, this is refunded to the student.
Federal Direct PLUS Loans for graduate students
Students may borrow up to the total amount needed to pay for graduate school tuition, room and board (on campus or off campus) books, fees and other educational expenses - less any
pending financial aid. Applicants must file the Free Application for Federal Student Aid (FAFSA) and apply for their maximum Federal Direct Loans before the Federal Direct PLUS Loan can be borrowed. Most applicants are eligible for the PLUS –
note that a basic credit check is required for this loan.
PLUS Loan funds are disbursed directly to a student’s school, which will apply the funds directly toward tuition, room, board, fees and other expenses. Any remaining money
will be conveyed to the student. PLUS repayment begins 60 days after the final disbursement of funds, with terms extending up to 10 years. Most lenders will defer the PLUS while students are in school. Students must check directly with their lender
about in-school deferment.
Loan Forgiveness and Repayment Options
Federal legislation, including the College Cost Reduction and Access Act, provides loan forgiveness options and several different income-based repayment plans for those with potentially burdensome
educational loan debt. To learn more, check out the NASFAA website. Note that these programs are subject to change or discontinuation based on new legislation, including current tax reform discussions.
Please check news sites and NASFAA.org to stay up to date on this important issue.
Alternative Loans
There are a variety of alternative loan programs offered by banks and other lenders. Alternative loan funds are disbursed directly to a student's school, which will apply the funds directly toward tuition, room,
board, fees and other expenses. Any remaining money will be refunded to the student. Alternative loans have a variable interest rate, and interest starts accruing immediately after disbursement. St. Bonaventure urges students to use the Stafford and
PLUS loans as first options, to borrow conservatively, and to examine all loans carefully to make sure that terms and conditions are clearly understood.
View the list of lenders provided by www.elmselect.com.