NASFAA’s response to fears that credit crunch will affect student loan availability.
Do you already have college loans and want more information on how to manage them effectively? TheNational Consumer Law Center’s Student Loan Borrower Assistance Project is a free resource for borrowers, their families, and advocates representing
student loan borrowers. If you already have student loans and want to know more about your options and rights, visit the student Loan Borrower Assistance Site.
Loans are an option for you and/or your parents when other financial resources are not enough to cover your entire cost of education. It's important to know about the different types of loans that are available to make an informed decision about what will be best to help you and/or your family cover the cost of attending the University of the Incarnate Word.
Please research your loan options carefully before making a choice of a loan program to purse, and remember - we are here to help you in any way we can. If you would like us to look over a loan application before it's submitted or before you sign the promissory note to make sure you understand what you are signing, please contact us or stop by our office.
The UIW Office of Financial Assistance recommends that you utilize loan options in the following order, depending upon eligibility for the loan and funding availability (click on the links below to see full program descriptions):
1. Federal Subsidized Stafford Loans (limits)
2. Federal Unsubsidized Stafford Loans (limits)
3. Low Interest/Zero Interest Loans (from private foundations/trusts)
4. Federal Parent PLUS or Graduate PLUS Loans or State Alternative Loan (College Access Loan)
6. Texas B-on-Time Loan (renewal students only)
After you've reviewed the various loan options, we suggest you take a look at Borrowing Responsibly - an online workshop for new borrowers. Students taking out Stafford loans for the first time with UIW will need to complete the Stafford Entrance Counseling requirement; and graduating students will need to complete the Stafford Exit Counseling requirements. New graduates should also review the various Loan Repayment Programs that are available to assist in paying off student loans.
Federal Subsidized Stafford Loan
Subsidized Stafford Loans are made available to students through a partnership arrangement involving schools, lenders, guarantors, and the federal and state governments.
- Fixed interest rate of 6.8 %.*
- U.S. Federal Government subsidizes this loan (pays the interest on the loan) while you are in school and during any eligible deferment period and reinsures the loan.
- You must apply annually (complete a FAFSA and a UIW Student Information Form) and demonstrate financial need
- UIW determines whether you are eligible and certifies the loan application.
- You accept the loan electronically (online at Loans by Web).
- Lending institutions (banks, credit unions and governmental/private lenders) fund this loan for you and monies are backed by a state, federal or private guarantee agency.
- You may choose the lender for this loan and are not restricted by any lender list or guarantor requirements.
- Some lenders charge an origination fee, not to exceed 1.5%, which is taken from the loan at the time of disbursement.
- Available to Undergraduate, Graduate, ADCaP and Virtual students enrolled at least half-time.
- Repayment of principal and interest begins 6 months after you graduate or you are no longer enrolled at least half-time.
- You have up to 10 years to repay this loan.
- This loan may be consolidated with other federal educational loans.
*Interest rates will drop to 6.0% on loans with a first disbursement after July 1, 2008 and for the 2008-09 academic year.
Federal Unsubsidized Stafford Loan:
Unsubsidized Stafford Loans are made available to students through a partnership arrangement involving schools, lenders, guarantors, and the federal and state governments.
- Fixed interest rate of 6.8 %.*
- You must apply annually (complete a FAFSA and a UIW Student Information Form) but you do not have to demonstrate financial need to qualify for this loan.
- You are responsible for paying the interest (or making arrangements to defer the interest to the end of the note) while you are in school and during any eligible deferment period.
- UIW determines whether you are eligible and certifies the loan application.
- You accept the loan electronically (online at Loans by Web).
- Lending institutions (banks, credit unions and governmental/private lenders) fund this loan for you and monies are backed by a state, federal or private guarantee agency.
- You may choose the lender for this loan and are not restricted by any lender list or guarantor requirement.
- Some lenders charge an origination fee, not to exceed 1.5%, which is taken from the loan at the time of disbursement.
- Available to Undergraduate, Graduate, ADCaP and Virtual students enrolled at least half-time.
- Repayment of principal and interest begins 6 months after you graduate or you are no longer enrolled at least half-time
- You have up to 10 years to repay this loan.
- This loan may be consolidated with other federal educational loans.
*The interest rate will NOT drop for Unsubsidized Stafford Loans -- only Subsidized loans were affected by recent Federal legislation for the 2008-09 academic year. The interest rate, however, may change (higher or lower) dependent upon further legislation; and will be updated when/if information is made available by the Department of Education.
Annual Borrower Limits |
||
|---|---|---|
Borrower's Grade Level |
Dependent Students * |
Independent Students ** |
Freshman (0-31 credits) |
$3500 |
$7500 |
Sophomore (32-63 credits) |
$4500 |
$8500 |
Junior and Senior (64+) |
$5500 |
$10,500 |
Graduate & Professional |
n/a |
$20,500*** |
*For dependent students whose parents cannot borrow under the Federal PLUS Program, the amount a student can borrow under the unsubsidized program is the same as for an independent student.
**Independent students who are not eligible for a full subsidized federal Stafford loan may borrow their remaining subsidized eligibility under the unsubsidized program.
***Graduate/Professional students in certain Health Profession programs may be eligible for higher limits. Currently, we have no programs which qualify for this increased eligibility, but we expect to offer this option to Pharmacy students once the Pharmacy Doctorate program attains full accreditation.
The maximum outstanding total Stafford loan debt allowed is:
- $23,000 for a dependent undergraduate student
- $46,000 for an independent undergraduate student and
- $138,500 for a graduate or professional student (including loans taken for undergraduate study).
Low Interest/Zero Interest Loans through Private Foundations/Trusts
American Association of Colleges of Pharmacy
Office of Student Affairs
1426 Prince Street
Alexandria, Virginia 22314
(703) 739-2330
- Loans up to $100,000.
- Loans may be made to undergraduate and graduate students in the field of pharmacy.
- Information is available online at http://www.aacp.org.
American Pharmaceutical Association Auxiliary (Irene A. Parks Loan Fund)
Attn: Peggy Gawronski
305 W. Old Middle Creek
Prestonburg, Kentucky 41653
(606) 886-0249
- Loans up to $500.
- Loans ar made to pharmacy students during their two years of pharmacy school.
- Repayment for the loan interest begins 60 days after graduation.
- Applicants should express financial need on their application.
- Information may be obtained by writing or calling the association.
The Nettie Mae Millhollon Educational Trust
P.O. Box 643
Stanton, Texas 79782
(432) 756-2261
- Maximum loan amount of $2,000 per semester (Fall and Spring), not to exceed the aggregate amount of $16,000 for the student's school career.
- Loans may be made to any student, subject to the availability of funds, who meets the foundation's requirements.
- Must be a legal Texas resident.
- Must be under age twenty-five (25).
- Must be attending a Texas college or university which has been accredited by the Commission of Colleges of the Southern Association of Colleges and Schools (SACS).
- Must be able to come to Stanton, Texas for a personal interview with one of the Board of Trustees Members at a time set by the Trustee.
- Selected applicants will be chosen from those interviewed based primarily on financial need as determined by the Trustees.
- All applications and attachments must be received in the Trust's office by the deadlines of July 1 for the Fall semester and January 2 for the Spring.
- The note and application must be signed by the student applicant. The note also must be notarized guaranteeeing repayment of all loans made to the student by the Trust.
- All supporting data will become part of a permanent loan file and will not be returned to the student.
- Applications that are not accepted will be destroyed along with all attachments.
- Students must renew loans each semester by contact the Trust for a new note and application. No interview is required for renewal.
- To renew a loan, the student must have completed at least 12 semester hours with at least a 2.5 GPA during the previous semester.
- Information on applying is available online at http://www.millhollon.com/index.htm.
The Bill Raskob Foundation, Inc.
P.O. Box 507
Crownsville, Maryland 21032-0507
(410) 923-9123
- Interest-free loan, not credit-based.
- Undergraduate and graduate students may apply.
- Applicants must be U.S. Citizens.
- Students must have completed at least one year of study at an accredited institution.
- Borrowing range of $1,000 - $3,000.
- Repayment begins 6-12 months after graduation, depending on student's major.
- Application period is January 1 - May 1 of each year.
- Information is available online at http://www.billraskob.org.
The Abe and Annie Seibel Foundation
c/o The Frost Bank - Trust Department
PO Box 8210
Galveston, Texas 77553-8210
(409) 770-5665
- Interest-free, not a credit-based loan.
- Must be a U.S. Citizen, Texas resident, and have graduated from a Texas high school.
- Must enroll full-time at a Texas college/university accredited by the Southern Association of Colleges and Schools (SACS)* with the intention of completing requirements toward a first bachelor's degree.
- Entering freshmen must meet one of the following sets of scores to apply:
| Class Ranking | Minimum SAT | Minimum ACT |
| Top 10% of Class | any score | any score |
| Top 15% of Class | 1500 | 22 |
| Second Quarter | 1650 | 25 |
| Third & Fourth Quarter | 1800 | 27 |
- College level applicants must maintain a 2.75 GPA overall.
- Applicants with the above MINIMUM scores will be given consideration for approval; however, this is not to be defined as automatic approval.
- High school seniors must submit a transcript reflecting SAT/ACT scores and rank in class.
- Applications and transcripts will be presented to the directors in the order in which they are completed.
- Funds are limited and it is advisable to submit requests as early as possible.
- Students may contact the Foundation by telephone or mail after November 1 each year to be placed on the mailing list for the upcoming fall/spring long-term school year.
- Application packets are accepted January 1 through February 28 of each year.
PEO International
Adrienne Russell
- For women only and must be selected and recommended for this loan by the local PEO contact, Adrienne Russell.
- 4% Annual Percentage Rate loans.
- Not a credit-based loan.
- Must be a U.S. or Canadian Citizen or Permanent Resident.
- Must demonstrate financial need as determined through Financial Aid application.
- Must be enrolled at least half-time.
- Maximum loan amount of $9,000.
- Contact Adrienne Russel for more information.
The Minnie Stevens Piper Foundation
1250 N.E. Loop 410, Ste. 810
San Antonio, Texas 78209-1539
- 4% Annual Percentage Rate loans.
- Not a credit-based loan.
- Must be a U.S. Citizen or Permanent Resident.
- Must be a Texas resident.
- Must demonstrate financial need as determined through Financial Aid application.
- Must be a college Junior, Senior or graduate/professional student.
- Must be enrolled full-time.
- Maximum loan amount of $1,000 per semester for undergraduate students or $2,000 per semester for graduate/professional students.
- Apply online at http://www.window.state.tx.us/scholars/programs/studentloan.html.
The Hattie M. Strong Foundation
1620 Eye Street, N.W., Ste. 700
Washington, DC. 20006-4005
(202) 331-1619
- This is an interest-free loan; eligibility is not credit-based.
- To be eligible, students must be American college students in the U.S. or abroad who are entering their FINAL year of study in a baccalaureate or graduate degree program. Foreign students temporarily in this country do not qualify for loans.
- Eligibility is based solely on merit without regard to race, sex or religion.
- Students must be enrolled full-time in an accredited four-year college or graduate school.
- The maximum loan amount is $5,000.
- The terms of repayment are based upon monthly income after graduation and are arranged with each individual so as to to create a minimum of hardship.
- Arrangements are made directly with students; interviews are not conducted.
- Students should contact the foundation between January 1 and March 31, giving a brief personal history, identification of educational institution attended, subject studied, dated expected to complete studies, and amount of funds needed. Enclosure of a self-addressed, stamped envelope will speed up the application process.
- If applicant qualifies for consideration for a loan, formal application blanks are then mailed to the students and forms must be returned to the foundation.
- Loan funds are limited and loans are therefore made on a competitive basis, taking into account the applicant's motivation, need, and self-reliance as well as scholastic record.
- Information is available online at http://www.hmstrongfoundation.org/contact_us.htm.
Federal Parent Loan for Undergraduate Student (PLUS):
- Fixed interest rate of 8.5 %
- Student does not have to demonstrate financial need
- Parent must not have an adverse credit history (or have an endorser who does not have an adverse credit history)
- Annual loan limit is the total Cost of Attendance minus other aid
- Processing fees are 3% - this will be taken out by the lender at disbursement, dependent upon which lender is chosen by the parent.
- Parents may choose the lender for this loan and are not restricted by any lender list or guarantor requirement.
- No aggregate limit
- Repayment begins 60 days from the date of the final disbursement; however, many lending companies allow parents to apply for forbearance while the student is enrolled at least half-time. Please note, loans continue to accrue interest during forbearance; and a forbearance will increase the total amount of interest paid over the life of the loan.
- Interest begins to accrue at the day of the first disbursement
How do you apply?
Families can apply for a PLUS loan online using Loans by Web by logging in, clicking on "Complete a Loan Award" and choosing "Option 2 - Complete a loan request." The parent borrower must consent to a credit check (which will be conducted by the lender) as part of the application process.
Before Applying
Please have the following information available:
- Student's social security number and date of birth
- Name, address, and phone number of two references
- Requested loan amount
Refer to the Award Letter included in your student's award packet. Your award will indicate the maximum amount that your parent can apply for. Please borrow only what you actually need to cover the gap between other financial aid you've received and your actual bill. We recommend applying for the whole academic year's amount (Fall + Spring) at one time. Remember that the PLUS is subject to a 3 percent origination fee deducted directly from the loan at the time of disbursement. - Loan period
When asked for the period of enrollment you intend this loan to cover, please select from the following dates:
*single semester loans are subject to a split disbursement--the first half of the funds will be disbursed at the start of the semester and the second half at the mid-point of the termFall 2007-Spring 2008 8/20/07 - 5/09/08 Fall 2007 Only* 8/20/07 - 12/08/07 Spring 2008 Only* 1/09/08 - 5/09/08 - Department of Education PIN
If you used a PIN to sign your family's "FAFSA on the Web", you can use the same PIN to sign your PLUS loan promissory note electronically. - Lender Choice
You will be asked to pick a lender to fund your PLUS loan. Some lenders offer borrowing incentives, such as rebates on the principal loan balance or opportunities for interest rate reductions. Visit your preferred lender's website for more information. You are not restricted by any lender list or guarantor agency choice. The Office of Financial Assistance will not refuse to certify a loan through any lender chosen by the parent.
- Fixed interest rate of 8.5 %.
- Student does not have to demonstrate financial need.
- Student must be admitted into the Graduate program at UIW.
- Student must not have an adverse credit history (or have an endorser who does not have an adverse credit history).
- Annual loan limit is the total Cost of Attendance minus other aid.
- Processing fees are 3% - this will be taken out at disbursement, dependent upon the lender the student chooses.
- No aggregate limit.
- Repayment begins at the day of the final disbursement.
- Interest begins to accrue at the day of the first disbursement.
How do you apply?
Students can apply for a Grad. PLUS loan online using Loans by Web . The student borrower must consent to a credit check (which will be conducted by the lender) as part of the application process.
Before Applying
Please have the following information available:
- Your social security number and date of birth
- Name, address, and phone number of two references
- Requested loan amount
Refer to the Award Letter included in your award packet. Your award will indicate the maximum amount that you can apply for. Please borrow only what is actually needed to cover any gap between other financial assistance and your bill. We recommend applying for the whole academic year's amount (Fall + Spring) at one time. Remember that the Grad. PLUS is subject to a 3 percent origination fee deducted directly from the loan at the time of disbursement. - Loan period
When asked for the period of enrollment you intend this loan to cover, please select from the following dates:
* single semester loans are subject to a split disbursement--the first half of the funds will be disbursed at the start of the semester and the second half at the mid-point of the termFall 2007-Spring 2008 8/20/07 - 5/09/08 Fall 2007 Only* 8/20/07 - 12/08/07 Spring 2008 Only* 1/09/08 - 5/09/08 - Department of Education PIN
If you used a PIN to sign your "FAFSA on the Web", you can use the same PIN to sign your Grad. PLUS loan promissory note electronically. - Lender Choice
You will be asked to pick a lender to fund your Grad. PLUS loan. Some lenders offer borrowing incentives, such as rebates on the principal loan balance or opportunities for interest rate reductions. Visit your preferred lender's website for more information. You are not restricted by any lender list or guarantor agency choice. The Office of Financial Assistance will not refuse to certify a loan through any lender chosen by the student.
State Alternative Loan (College Access Loan)
- Fixed interest rate of 6.0 % or variable interest rate of 6.92 % (the variable rate is set annually and will never be higher than 4 points above the rate at which the loan is made).
- Students must be Texas residents.
- Students must be enrolled at least half-time in a course of study leading to an associate, bachelor or graduate degree or be enrolled in an approved Alternative Educator Certification Program.
- Students must receive a favorable credit evaluation or provide a cosigner who has good credit standing and meets other requirements.
- Students may borrow an amount up to the cost of attendance, less other financial aid.
- A 3 % origination fee will be deducted from the proceeds of each loan if both the borrower and cosigner have a good credit standing; a 5 % origination fee will be deducted from the proceeds of each loan if either the borrower or cosigner, but not both, has a good credit standing.
- Students may apply online at http://www.hhloans.com/.
Advisory: Currently, we have no additional funding for the Perkins Loan program for 2007-08. Please keep checking back to see if this status changes.
There is a small amount of campus loan funding available to students with no other option. Funding is limited and students must demonstrate need based on FAFSA results to be considered. Since funding is limited, students on the waiting list are not guaranteed assistance through these loan programs. In addition, these funds are for billed expenses only and can not to be used as a refund.
To be considered you must:
- Be denied for a State or Private loan with a co-signer
- Have a parent that has been denied for a PLUS loan (if a dependent student) and accept the additional Unsubsidized Stafford loan
- Notify OFA (submitting denial letters) to be placed on a waiting list for additional funds (this includes Perkins, B-On-Time, and Federal Nursing Loan)
Federal Perkins Loan Information:
- Loan interest rate of 5%
- You can borrow up to $4000 depending on need
- Funding is limited-awards are made on a first-come, first-serve basis to those students with high need
- Total aggregate limit is $15,000 for undergraduates, $30,000 for graduates
- Repayment begins 9 months after graduate or are no longer enrolled half-time
- You must complete a Promissory note - go to www.signmyloan.com
- If you are graduating, you will need to complete the online Exit Counseling
- Contact the Finance Loan Officer at the Business Office (210) 829-6084 or irmag@uiwtx.edu if you have any questions or experience any technical difficulties.
The State of Texas is not providing funding for new B-on-Time Loans for 2007-08. Students who had the loan in 2006-07 and have met the requirements to keep the loan will be renewed for 2007-08; but UIW cannot offer loans to students who have never had this loan before.
If you're graduating and will qualify to have this loan forgiven, download and complete the Texas Higher Education Coordinating Board's B-on-Time Loan Forgiveness Verification Worksheet.
If you need additional funds to meet your education costs, alternative loans may be an option for you. Alternative loans are private loans made through private lending institutions (banks, credit unions or other, private educational lenders). These loans are not part of the federal government loan programs – they are credit-based and may require a cosigner. Alternative loans are generally more expensive than federal government guaranteed loans and should only be used when all other options have been exhausted.
Research all possibilities for scholarships, grants, work-study, and federal loan programs before borrowing from an alternative loan program. If you determine you need an alternative loan, research lenders carefully before making a decision. Interest rates will vary based upon lender and credit eligibility. Students who qualify without a cosigner may still want to add a cosigner to their loan in order to secure a lower interest rate and/or lower origination fees. School-certified alternative loans will usually have better interest and repayment terms than non-school-certified loans.
You are not required to use the lenders on the UIW lender list. Lender choice is up to you. Some lenders offer borrowing incentives, such as rebates on the principal loan balance or opportunities for interest rate reductions. Visit your lender's website for more information. Choose the loan that best suits your needs and remember to borrow only what you need.
Stafford Entrance Loan Counseling
We require all students that receive loans to complete the Entrance Loan Counseling Session. This on-line loan counseling session is designed to help the borrower understand his/her rights and responsibilities as they pertain to loan borrowing. The Stafford Entrance Loan Counseling session must be completed before any loan funds may be disbursed to the student’s account.
- Log on to http://www.mapping-your-future.org.
- Select “Student Loan Counseling Interview”
- Select “Stafford Entrance”
- Read the information provided and answer the questions provided for each section
- Upon completion, print out the confirmation page for your records
- The Office of Financial Assistance at UIW will receive e-mail confirmation once you complete the session.
Stafford Exit Loan counseling is required for all graduating students that have received loan funds while attending UIW. A hold will be placed on the student’s graduation if this requirement is not satisfied.
- Log on to http://www.mapping-your-future.org.
- Select “Student Loan Counseling Interview”
- Select “Stafford Exit”
- Read the information provided and answer the questions provided for each section
- Upon completion, print out the confirmation page for your records
- The Office of Financial Assistance at UIW will receive e-mail confirmation once you complete the session.
- Educational loans exist to help you pay for your cost of attendance at UIW.
- Think carefully about the amount you really need to borrow before you decide how much to take out on a loan.
- Student loans are borrowed money that must be repaid, with interest, just like car loans and mortgages.
- Read the fine print on your application and promissory note carefully. You need to know: the full amount of the loan you are taking out, the current interest rate on the loan, the date you must start repayment, whether there are any charges you must pay (loan origination fees/guarantee fees) and how those fees will be collected; the maximum amount you can borrow each year; the maximum time for repayment and the estimated repayment amounts; the circumstances that will result in default and the consequences should you default; and your available options for deferment, forbearance and loan consolidation.
- Keep track of your lenders. It is your responsibility as the borrower to stay in touch and notify your lender if you graduate, withdraw from school, drop below half-time enrollment, change your name, or transfer to another school.
Loan Repayment Programs (LRP's) are programs sponsored by national, state and local governments, and some private organizations, where professionals (teachers, nurses, etc.) are recruited to practice in designated professional shortage areas. Participants may be provided with living stipends and funds to repay educational loans. Most contracts require a 2 to 4 year commitment, but individual program information should be consulted. Benefits may also include tax relief, scholarship opportunities and in the case of the military programs, enlistment as an officer in the Armed Forces.
- Air Force College Loan Repayment Program
- Army College Loan Repayment Program
- Doctoral Incentive Loan Repayment Program
- HRSA Nursing Education Loan Repayment Assistance
- Indian Health Service Loan Repayment Program
- Navy Student Loan Repayment Program
- NIH Loan Repayment Program
- Teach for Texas Loan Repayment Assistance
- Teacher Loan Forgiveness Program
- U.S. O.P.M. Student Loan Repayment Program (for federal agency employees)
