2006-2007 Academic Catalog

244 Cedarville University 2006-07 Financial Information Financial Information Institutional Loan Funds Detailed information concerning the application and repayment process is available from the financial aid office. There are several types of short and long-term loans available for situations where funding is delayed. A co-signer is required unless payment is guaranteed through another source of financial aid in the given academic year. The annual limit for an institutional loan is $2,400. Federal Family Education Loan Programs Federal Stafford Student Loan Federal Stafford Student Loan funds are available to dependent and independent undergraduate students. Requests for loan assistance from this program may be made through the FAFSA. Cedarville University processes applications electronically through the Great Lakes Higher Education Corporation and its participating lenders. Applications will be mailed directly to the student from the guarantee agency. The federal government will subsidize (pay) the interest on loans while the student is in school and during a six month grace period following withdrawal or graduation if the student has demonstrated financial need as determined by the FAFSA calculations. The interest rate, as of July 1, 2006, is a fixed rate at 6.8%. Freshmen can borrow a maximum of $2,625, sophomores $3,500, and juniors and seniors $5,500. Loan origination and insurance fees totaling 3% of the loan amount will be deducted by the lender. Federal Unsubsidized Stafford Student Loan Federal Unsubsidized Stafford Student Loan funds are available to students who do not qualify for all or part of the need-based subsidized Stafford Loan. The annual loan limits are the same, as stated above, for the subsidized, unsubsidized, or any combination of the two programs. In this program, all the terms are the same as the subsidized Stafford; however, the federal government does not cover the interest expenses while the student is in school or during the six-month grace period. The student does have the option to defer interest payments during in-school and grace periods; however, the interest continues to accrue. Independent students are eligible to borrow additional funds through the Unsubsidized Stafford. Freshmen and sophomores may borrow an additional $4,000 and juniors and seniors may borrow an additional $5,000 per year. Federal Parent Loan to Undergraduate Students (PLUS) Federal Parent Loan to Undergraduate Students (PLUS) funds are available for creditworthy parents to borrow on behalf of their students. This loan program is not based on financial need and may be used to replace all or part of the expected family contribution. Parents may borrow any amount up to the cost of education less any financial aid the student is receiving. The fixed interest rate is 8.5%. The lender will deduct 3% of the loan amount to cover the origination and insurance fee. Repayment does begin within 60 days following full disbursement of the loan funds. Further information and applications for this program may be obtained by contacting the financial aid office. Students should be aware that funds awarded from these programs are considered to be awarded for the entire loan period requested by the borrower. Should the student withdraw before the end of the loan period, a proportionate refund of the loan funds may be returned to the lender. In addition, if a student is enrolled for less than a full academic year immediately preceding graduation, the annual loan limit may be prorated based on the number of credits remaining to complete the program of study. Specific questions relating to the federal regulations outlined above may be directed to the financial aid office. Federal Perkins Loans Federal Perkins Loans are available through the University to students who are citizens of the United States and who demonstrate exceptional financial need. Funds are awarded to Federal Pell Grant recipients first. Other applicants are awarded pending availability of funds. The Federal Perkins Loan Fund was established to help students pursue their courses of study at their chosen institutions of higher education. Students are eligible if they are: (1) a citizen of the United States, in the United States for other than a temporary purpose and intend to become a permanent resident thereof, a permanent resident of the Trust Territory of the Pacific Islands, or the Northern Mariana Islands; (2) in need of the amount of the loan to pursue a course of study at an eligible institution; (3) capable, in the opinion of the institution, of maintaining good standing in such course of study; and (4) accepted for enrollment as at least a half-time undergraduate student. Continuing students must be in good standing and enrolled as at least a half-time undergraduate. The standard Perkins Loan amount is $1,500. However, the annual amount may be increased as funding allows. Repayment begins nine months after graduation or when a student leaves school for other reasons. One may have up to 10 years to pay back the loan, depending upon the aggregate amount borrowed. During the repayment period, the borrower will be assessed 5% interest on the unpaid balance of the loan principle. Exit interviews will be conducted for graduates and withdraws to explain loan deferment and cancellation provisions for borrowers who continue their education or go into certain fields of teaching or specified military duty. Financial Aid