Types of Federal Loans

There are currently four types of federal loans available to assist students with paying for college. The four types of loans consists of Federal Stafford Subsidized Loans, the Federal unsubsidized loan, the Federal Perkins loan and the Federal PLUS loan (Parent Loan for Undergraduate Students). Each student is required to complete a loan entrance counseling session upon accepting a federal loan as a first time borrower. In addition, prior to separating from the college through withdrawal, transfer or graduation, the student is required to complete a loan exit counseling session.

Federal Stafford Subsidized Loan

The federal Stafford subsidized loan program is a need based loan made available to students as a means of financial aid to help cover the cost of attendance. Federal Stafford loan amounts are determined based upon student enrollment and classification. The current interest rate is 6% and repayment begins six months after separation or graduation from college and if the student falls below half time status. The government pays the interest on the subsidized loan while the student is enrolled. A credit check is not required for this loan, however, completion of the FAFSA serves as the application.

Federal Stafford Unsubsidized Loan

The federal Stafford unsubsidized loan program is a loan made available to students as a means of financial aid to help cover the cost of attendance. Federal Stafford loan amounts are determined based upon student enrollment and classification.  The current interest rate is 6.5% and repayment begins six months after separation or graduation from college. The student is responsible for the interest, which may be paid while the student is in school or accrued and then added to the principal balance when the student enters repayment. A credit check is not required for this loan, however completion of the FAFSA serves as the application.

Federal Perkins Loan

The Federal Perkins loan program is a need based loan made available to students as a means of financial aid to help cover the cost of attendance. The current interest rate is 5% and repayment begins nine months after separation or graduation from college. At Bennett College, the loan amounts range between $1,000 and $4,000 within a school year. The college is the lender,  the FAFSA is required as the application and the student must demonstrate exceptional need. The amount of Federal erkins loan award is contingent upon enrollment, annual funding availability, collection efforts and the colleges default rate.

Federal PLUS loan

The Federal Plus Loan program is a Parent Loan program for Undergraduate dependent Students. PLUS loans are means of financial aid that allow the parent to borrow money to help the student pay the cost of attending college. PLUS loans require a credit check and in some instances an eligible cosigner. The interest rate is currently 8.5% and repayment begins following the final disbursement for the year. Bennett College is currently enrolled in the PLUS success program. The amount of the PLUS loan cannot exceed the annual cost of attendance.  If the parent is denied the parent plus loan due to credit, the student will become eligible to receive an additional unsubsidized loan in her name.

The parent must provide documentation from the lender, before an additional unsubsidized loan is offered to the student. The additional unsubsidized loan amounts are $4,000 for first and second year students and $5,000 for third and fourth year students.

Additional unsubsidized loans are only available to dependent students whose parent is denied the parent plus loan due to adverse credit or independent students.