Loans | Drew University

What is the distinction between a Direct Subsidized and a Direct Unsubsidized Loan? The federal authorities pays the curiosity for Direct Subsidized Loans whereas the student is in school or whereas the loan is in deferment. Interest begins accruing for Direct Unsubsidized Loans as quickly because the loan is taken out.

How a lot can I borrow? For sponsored loans, the utmost is $3,500 for freshmen, $4,500 for sophomores and $5,500 for juniors and seniors. Undergraduates who are usually not eligible for Direct Subsidized Loans could borrow an similar quantity in a Direct Unsubsidized Loan. Undergraduates can also borrow an extra $2,000 in a Direct Unsubsidized Loan after they’ve exhausted their preliminary sponsored/unsubsidized eligibility. Graduate students could borrow a Direct Unsubsidized Loan for as much as $20,500. Undergraduates could not borrow sponsored loans in extra of their monetary want (the distinction between the price of attending Drew and our estimate of your contribution to your or your baby’s training). No student could borrow unsubsidized loans in extra of his/her price of attendance.

What are the rates of interest?
2021-2022 Direct Loan Interest Rates and Fees (efficient July 1, 2021)

Direct Loan Program	Interest Rate	Fee*
Subsidized Federal Direct Loan (for undergraduates solely)	3.73%	1.057%
Unsubsidized Federal Direct Loan (undergraduate students)	3.73%	1.057%
Unsubsidized Federal Direct Loan (graduate students)	5.28%	1.057%

*Direct Loan Fee: The Subsidized and Unsubsidized Federal Direct Loans have a 1.059% origination payment which can be deducted from the gross quantity of the loan borrowed.

When are the funds due? Repayment begins six months after leaving school. Payments are made month-to-month, and you’ve got 10 years to repay the loan.

Maximum eligibility interval to obtain Federal Direct Subsidized Loans: There is a restrict on the utmost time frame (measured in educational years) that you could obtain Direct Subsidized Loans. In common, you could not obtain Direct Subsidized Loans for greater than 150% of the revealed size of your program. This known as your “maximum eligibility period.” You can normally discover the revealed size of any program of research in your faculty’s catalog. For a student enrolled in a four-year bachelor’s diploma program, the utmost interval for which he/she will be able to obtain Direct Subsidized Loans is six years (150% of 4 years = six years). A student’s most eligibility interval is predicated on the revealed size of your present program. This implies that your most eligibility interval can change if you happen to change applications. Also, if you happen to obtain Direct Subsidized Loans for one program after which change to a different program, the Direct Subsidized Loans you acquired for the sooner program will typically rely towards your new most eligibility interval.

Periods that rely towards your most eligibility interval: The intervals of time that rely towards a student’s most eligibility interval are intervals of enrollment (also referred to as “loan periods”) for which he/she acquired Direct Subsidized Loans. For instance, if a full-time student receives a Direct Subsidized Loan that covers the autumn and spring semesters (a full educational yr), this can rely as one yr towards the utmost eligibility interval. If a student receives a Direct Subsidized Loan for a interval of enrollment that’s shorter than a full educational yr, the interval that counts towards his/her most utilization interval will typically be diminished accordingly. For instance, if a student is a full-time student and receives a Direct Subsidized Loan that covers the autumn semester however not the spring semester, this can rely as one-half of a yr towards his/her most eligibility interval.

Loss of eligibility for added Direct Subsidized Loans and turning into answerable for paying curiosity on Direct Subsidized Loans: After a student has acquired Direct Subsidized Loans for his/her most eligibility interval, the student is not eligible to obtain further Direct Subsidized Loans. However, a student could proceed to obtain Direct Unsubsidized Loans. In addition, if a student continues to be enrolled in any undergraduate program after he/she has acquired Direct Subsidized Loans for his/her most eligibility interval, the Department of Education will not (with sure exceptions) pay the curiosity that accrues in your Direct Subsidized Loans for intervals after they usually would have finished so.

How do I apply?

• Fill out a FAFSA and point out you have an interest in a Direct Student Loan. Your FAFSA is your loan software.
• Once Drew receives your FAFSA and some other required monetary help varieties, your eligibility for Direct loan funds can be decided.
• You can be despatched an e-mail indicating that your Financial Aid Awards may be seen in your TreeHouse account. Log on and settle for your awards.
• Once you will have accepted your awards, a hyperlink to studentloans.gov will seem in your TreeHouse account. This web site will give you directions on learn how to electronically fill out your Master Promissory Note and Entrance Interview. Students solely must fill this kind out as soon as in 10 years, so they won’t be required to finish it once more whereas at Drew. After you will have stuffed out a Master Promissory Note, in subsequent years, you solely must proceed filling out the FAFSA kind and accepting your awards on TreeHouse to obtain Federal Direct loan funds.
• The Department of Education will transmit your funds electronically to Drew’s Student Accounts Office, which is able to then credit the funds to your account.
• If you will have a credit in your account after receiving loan funds, and are usually not on any cost plan, the Student Accounts Office can normally mail you a verify for the credit in your account 7-10 days after you name them together with your request (973-408-3114).

Entrance and Exit Interviews

• What is an Entrance Interview? Entrance Interviews are carried out when a student first borrows cash by a Federal Direct Loan program. The goal of the Entrance Interview is to acquaint the borrower with the phrases and circumstances of the loan. Entrance Interviews are required earlier than any loan funds can be disbursed to the student’s account. If Drew receives loan funds and the student fails to finish an entrance interview in a well timed method, the loan funds can be returned. CLA, Graduate, and Theological students who’re first-time debtors, no matter their yr in school, want to finish an Entrance Interview. All students are inspired to fill out an Entrance Interview on-line at studentloans.gov.
• What is an Exit Interview? Exit Interviews are carried out for students who’ve borrowed cash by a Federal Stafford and/or Federal Direct Loan program (see under) and are able to graduate or are registered lower than half-time. Students want to finish the Exit Interview earlier than graduating. The Exit Interview ensures that student debtors know who their lenders are, how a lot they’ve borrowed, and perceive the forbearance course of and the phrases and circumstances of their loans. All students are inspired to fill out an Exit Interview on-line at studentloans.gov.
• Maximum Annual Loan Limits: There are limits to the quantity of Federal Direct Loans a student can borrow every educational yr. The charts under define these limits. A student’s precise eligibility could also be much less relying on the price of attendance and some other monetary help for which they’re eligible.
• Loan Problems? Having issues together with your student loan — with disbursements, deferment or forbearance? The very first thing to do is to contact your lender. If you’ve misplaced monitor of your lender, strive the National Student Loan Clearinghouse’s free Loan Locator service. If you continue to can’t resolve your downside, contact the Office of Financial Assistance right here at Drew, or your federal servicer. Information about your federal servicer ought to be included together with your loan varieties. If you continue to can’t resolve your issues, your final useful resource is NASFAA’s Office of the Ombudsman:

Office of the Ombudsman
Student Financial Assistance
U.S. Department of Education
Rm. 3012, ROB #3
seventh and D Streets, SW
Washington, D.C. 20202-5144
1-877/557-2575
ombudsman.ed.gov

The Office of the Ombudsman is your final recourse after contacting your lender, federal servicer and Drew’s Office of Financial Assistance.

What is a Direct PLUS Loan?

A Direct PLUS Loan is a mother or father loan for undergraduate students. Funds for these loans come from the federal authorities for folks of dependent undergraduates with out an opposed credit historical past. Students have to be enrolled no less than half-time and in good educational standing. These loans are usually not based mostly upon willpower of economic want. The mother or father applies for this loan and is answerable for reimbursement.

Graduate students could borrow a Direct Graduate PLUS Loan from the federal authorities. They should exhaust their Direct Subsidized and Direct Unsubsidized Loan eligibility earlier than they’re eligible to borrow a Direct Graduate Plus Loan. Graduate students should not have an opposed credit historical past and have to be enrolled no less than half-time, in good educational standing. These loans are usually not based mostly upon willpower of economic want.

• How a lot can I borrow? At least $200, however to not exceed the student’s estimated price of attendance minus the student’s estimated monetary help for the tutorial interval.
• What are the rates of interest? You pay a 4.228% origination payment that’s deducted instantly from every loan disbursement. Direct PLUS Loans made throughout the interval of July 1, 2021 to June 30, 2022, have an rate of interest of 6.28%.
• When are the funds due? Payments are due month-to-month and start 60 days after the disbursement of the primary loan funds. Parents and graduate students could apply to the Department of Education for a deferment of cost throughout the enrollment interval; nevertheless, curiosity will proceed to accrue throughout the deferment interval. The variety of years allowed to pay again this loan is 10 years; nevertheless, students and oldsters could apply for a consolidation or an prolonged reimbursement plan.
• How do I apply?
  • All students should fill out a FAFSA.
  • Log on to studentloans.gov, the place directions on learn how to electronically apply and fill out your grasp promissory word are offered.
  • The Department of Education will transmit your funds electronically to Drew’s Student Accounts Office, who will then credit the funds to your account.
  • If you will have a credit in your account after receiving loan funds, and are usually not on any cost plan, the Student Accounts Office can normally mail you a verify for the credit in your account 7-10 days after you name them together with your request (973-408-3114).

A number of phrases about selecting a Private Educational Loan Lender. Many students and oldsters think about non-public loan applications as a supply of funding after exhausting all alternatives obtainable from federal and state help applications. As all the time, taking over debt for any cause ought to be finished intentionally and just for the quantity essential. If you intend to borrow a Private Educational Loan, you could choose a lender (the establishment from which the cash is definitely borrowed). You ought to make an knowledgeable choice when choosing a lender, as all lenders are usually not the identical, and you’ll be coming into in a long-term relationship with that establishment. Reasons for choosing a specific lender range from individual to individual. Some individuals select a lender based mostly on identify or model recognition or status, or they like the rapid good thing about below-market processing charges. Other persons are interested by borrower advantages in reimbursement, reminiscent of an rate of interest discount as a reward for making consecutive on-time funds. We encourage households to make use of the lender and the loan product that finest meets their wants.

Please go to our ELM SELECT WEBSITE to start the method of researching and choosing a lender. This website means that you can examine and distinction numerous loan merchandise provided by a number of completely different lenders that Drew students have a historical past of borrowing from. Please word that you’re not required to make use of one of many lenders that seem on this website. If you will have any questions relating to the non-public academic loan course of, please contact Drew University’s Office of Financial Assistance at 973-408-3112 or [email protected]

Who can apply? To be eligible for a United Methodist Loan, you have to be an lively, full member of the United Methodist Church for no less than one yr previous to making use of, a citizen or everlasting resident of the United States, admitted to a level program in an accredited school or college and sustaining no less than a C common.

How a lot can I borrow and what are the rates of interest? Up to $5,000 per yr for full-time students. Credit-worthy cosigners are required for all loans and all loans are topic to a 1.072% origination payment. There is a 4% curiosity deferred loan or a 3.75% curiosity non-deferred loan with rapid reimbursement. Repayment on the deferred loan begins no later than six months after the student graduates or withdraws from faculty, and the ultimate cost is due not more than 120 months (10 years) after the primary cost is due. The non-deferred loan will accrue much less curiosity over the lifetime of the loan.

Application: Visit the United Methodist Church loan web site for particulars and an software, or contact [email protected]