Need help with loans?

Subsidized Stafford Loans
Amount: First-Year Student, $3,500; Sophomore, $4,500; Junior/Senior, $5,500. Loan amounts are subject to a processing fee by the lending institution.

• Loans made by banks and/or the U.S. Department of Education to students who complete the FAFSA and demonstrate financial need.
• Interest rate is 5.6% for loans disbursed after July 1, 2009.
• Government pays interest on borrower’s behalf until repayment period begins.
• First-time borrowers must complete a Master Promissory Note and entrance counseling prior to having loan funds credited to their account.

Unsubsidized Stafford Loans
Amount: First-Year Student, up to $5,500; Sophomore, up to $6,500; Junior/Senior, up to $7,500. Loan amounts are less any Subsidized Stafford Loan and are subject to a processing fee by the lending institution.

• Loans made by banks and/or the U.S. Department of Education to students regardless of financial need.  Students must complete a FAFSA.
• Interest rate is 6.8% for loans made after July 1, 2009.
• Student is responsible for interest that accrues while in school and may opt to make interest payments or defer all payments until payment period begins.
• First-time borrowers must complete a Master Promissory Note and entrance counseling prior to having loan funds credited to their account.

Perkins Loans
Amount: Up to $3,500 per year.

• Loans made by Albion College to exceptionally needy students to supplement Stafford Loan eligibility. Students must complete a FAFSA.
• Repayment and a 5% fixed interest rate currently begin nine months after graduation or student status ceases.
• Priority given to Pell Grant recipients.
• Perkins funds are credited directly to your account.
• First-time borrowers must complete a Master Promissory Note and entrance counseling prior to having loan funds credited to their account.

Private and Alternative Loans
Alternative loans are available from a variety of banks and lenders. You can apply for an alternative loan by contacting the lender directly. Often, lenders require that Albion’s Financial Aid Office certify that you are a student and confirm your costs for the year.

It’s important to be an informed borrower. Loan provisions and requirements vary greatly and change frequently. Contact your lender for specific information regarding the most current interest rates, fees, and eligibility requirements before taking a loan.

Be sure to research loan companies carefully. The Federal Trade Commission has a helpful Web site that provides tips on selecting a lender.

Other private loan programs exist, and information is available from the Financial Aid Office at Albion College.