Loans

Low interest student and parent loans are borrowed money that must be repaid. Loans are a large part of many students' aid package. Borrow only what you need. Always remember that you will pay back what you borrow.

In addition to this chart, key links to loan information can be found using the "Loans" link on the navigation bar.

PROGRAM	DESCRIPTION	ELIGIBILITY	AMOUNT	TERMS	REPAYMENT
Federal Perkins Loan	Federally funded long-term loan awarded by UC (unavailable for 2009-10 academic year)	Based on financial need; early FAFSA application	Ranges from $2,100 to $4,000	5% fixed interest deferred while enrolled	Begins 9 months after less than half-time enrollment
Nursing Student Loan	Same as Perkins	Nursing student; based on financial need; early FAFSA application	Ranges from $2,100 to $2,700	Same as Perkins	Same as Perkins
Health Professions Student Loan	Same as Perkins	Pharmacy student; based on financial need; early FAFSA application	$2,100	Same as Perkins	Begins 12 months after less than half-time enrollment
Federal Subsidized Stafford Loan	Federally funded long-term loan certified and transmitted by UC; choice of lender and amount	Based on financial need	Maximum combined  amount based on budgeted cost of attendance and other aid: Dependent Fr - $5,500 So - $6,500 Jr/Sr - $7,500 Independent Fr - $9,500 So - $10,500 Jr/Sr - $12,500 Grad - $20,500	5.6% (undergraduate) and 6.8% (graduate) fixed interest rate deferred while enrolled; see note below on past rates	Begins 6 months after less than half-time enrollment
Federal Unsubsidized Stafford Loan	Same as Subsidized Stafford	Any student may borrow		6.8% fixed interest rate accrues while enrolled; see note below on past rates	Principal - same as Subsidized Stafford; interest - choice of paying while enrolled or allowing it to capitalize onto the principal
Federal Graduate PLUS Loan	Same as Subsidized Stafford	Graduate student may borrow; based on credit check	Maximum amount cannot exceed budgeted cost of attendance less other aid	8.5% fixed interest rate	Begins 60 days after loan disbursed; possible deferment based on request to lender
Federal Parent PLUS Loan	Same as Subsidized Stafford	Parent or stepparent of dependent student may borrow; based on credit check	Maximum amount cannot exceed budgeted cost of attendance less other aid	8.5% fixed interest rate; see note below on past rates	Begins 60 days after loan disbursed; deferment option until 6 months after student enrolled less than half-time available as of July 2008

Notes:

• Must be admitted into a degree program and enrolled at least half-time to receive a loan.
• Eligibility criteria subject to change; maximum amounts are estimates and dependent upon sufficient funding.
• Early FAFSA application means limited funding; awards are made on a first-come, first-serve basis until funding is depleted.
• Listed interest rates are for the 2009-2010 academic year; details on past interest rates noted below.
  • Stafford Subsidized (undergraduate): 6.0% fixed rate for loans first disbursed July 2008 to June 2009; 6.8% fixed rate for loans first disbursed July 2006 to June 2008; variable rate up to 8.5% for all loans prior to July 2006.
  • Stafford Subsidized (graduate): Variable rate up to 8.5% for all loans prior to July 2006.
  • Stafford Unsubsidized: Variable rate up to 8.5% for loans prior to July 2006.
  • Federal Parent PLUS: Variable rate up to 9.0% for loans prior to July 2006.  

PROMISSORY NOTES
Following your acceptance of a loan on the Award Offer, you will need to complete the required loan promissory note. This note is a legal document. It is your promise to use the money for educational purposes and to repay the loan. Promissory notes can be completed online.

In the case of Federal Stafford Loans, you will choose the amount you wish to borrow on your Award Offer. The Student Financial Aid Office will then certify and electronically transmit data to Great Lakes Higher Education Corporation, an agency that guarantees loans. If you have not had a previous Stafford Loan with Great Lakes, they will send you a Master Promissory Note. By signing it, you designate a lender that will be used for your loan funds, and you accept the terms of the loan now and in future years.

Once your Perkins, Nursing, or Health Professions promissory note is completed online or your Stafford Master Promissory Note is returned to Great Lakes, funds are disbursed each quarter to the Student Accounts Office for posting on your eBill.

Federal Graduate and Parent PLUS Loans are processed in a manner similar to the Stafford Loan with the addition of a credit check. Once approved, loan disbursements will be sent quarterly to UC's Student Accounts Office. If a parent loan is denied based on the credit check, the student may be eligible for limited additional loans in their name.