Loan Information
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Federal Perkins Student Loan
Malone College is the lender for this loan. The Federal Perkins Loan may be awarded to students with exceptional financial need based on the FAFSA results. The interest rate is 5%. Repayment of principal and interest are deferred until nine months after graduation or when enrollment ceases to be at least half time. Awards range from $500 to $2000 per year. Due to the fact that the Perkins Loan is funded from limited funds, March 1st is the application deadline for consideration of eligibility. All new borrowers must complete and sign the Federal Perkins Loan Master Promissory Note (MPN). Malone Student who have been awarded a Federal Perkins Loan may complete their Master Promissory Note (MPN) by clicking here.
Federal Stafford Student Loan
Subsidized Stafford loan eligibility is determined by the FAFSA results and the Financial Aid Office. The Subsidized Stafford loan is a need-based loan. The government pays the interest while the student is in school at least half time and during a six month grace period after the student leaves school or drops below half-time attendance. Payment of principal is deferred during enrollment and during the grace period. Unsubsidized Stafford loan eligibility is determined by the FAFSA results and the Financial Aid office. The Unsubsidized loan is not a need-based loan. The awarded amount is in combination with the Subsidized loan and the total is limited to grade status limits. You are responsible for interest accrued while in school. However, interest payments may be “capitalized” which means the lender may add the accruing interest to the principal that you owe. At repayment time, the principal owed will be increased by the interest that has accrued. Future interest payments will be based on both the original principal and any capitalized interest. Payment of principal is deferred during enrollment and during the grace period. Grade Status Limits*:
*All maximums may be lower if the educational budget is lower Additional unsubsidized Stafford loan funds are available to independent students or students whose parents have been denied a PLUS loan. Annual loan limit is $4,000 for freshman and sophomore grade levels, $5,000 for remaining undergraduate years. The interest rate for the Subsidized/Unsubsidized Stafford loan is a fixed rate of 6.8% for loans disbursed on or after July 1, 2006. Fees for the Stafford loan are subject to change. Origination and default fees of up to 2.5% may be deducted from the loan proceeds prior to each disbursement. Annual loan amounts are divided equally between each semester enrolled. Malone awards Stafford loan, subsidized or unsubsidized, based on eligibility. A Master Promissory Note (MPN) will be originated for all first-time Stafford borrowers. New borrowers may wish to consider the following lenders:
Charter One
Chase
Citibank
Edamerica
Key Bank National City Bank Student Lending Works
U.S. Bank
Wachovia The new borrower must complete the on-line Entrance Counseling session and do the on-line MPN in order for Malone to receive loan disbursements. Repeat borrowers will receive subsequent yearly loan disbursements based on the original MPN for up to 10 years. (Transfer students will want to make sure they choose the same guarantor and lender used at their prior school. Please notify the Financial Aid Office with prior guarantor and lender information.)
TO APPLY FOR THE STAFFORD LOAN:
To compare the borrower benefits of several different lenders and then to continue on to sign the Stafford MPN and complete the Entrance Counseling session Click Here (when you get to the page entitled "Loan Options" make sure the Stafford is selected for the loan type).
After your loan is approved you may use Great Lakes' “Internet Borrower Inquiry Services” (IBIS) to view your loan account; you may access IBIS by choosing the "borrower" tab to sign up for account access at www.glhec.org
Federal PLUS Loan (Parent Loan for Undergraduate Students)
The Federal PLUS (Parent Loan for Undergraduate Students) is a non need-based loan. The amount awarded is determined by the cost of education less all other financial aid. Approval of the PLUS is based on parental credit history. The interest rate is fixed at 8.5% for loans disbursed on or after July 1, 2006. Repayment begins 60 days after the loan is fully disbursed.
Due to ease and fast turnaround, we strongly encourage the parent borrower to apply for the Federal PLUS online. The online procedure is the fastest way to find out if you are approved and then to proceed with the application. Final approval for the Federal PLUS is based on a credit review performed by the lender.
New borrowers may wish to consider the following lenders:
Charter One
Chase
Citibank
Edamerica
Key Bank National City Bank Student Lending Works
U.S. Bank
Wachovia TO APPLY FOR THE PLUS:
For a comparison of borrower benefits for several different lenders and then to apply for the PLUS Click Here (when you get to the page entitled "Loan Options" make sure you select the Parent PLUS tab for the loan type).
To access the FASTPLUS site click here: FASTPLUS Pre-approval and Application
Alternative Student Loans
Alternative loans are private bank loans in the student’s name and usually require a co-signer. These types of loans are designed to assist students who need additional educational financing. Loan approval is generally based on creditworthiness and ability to repay. Malone advises careful consideration in determining amounts of alternative loan borrowed to keep total loan debt manageable and recommends the use of this type of loan be limited, using up all Stafford and Plus eligibility first. The interest on alternative loans accrues while the student is in school; however, most lenders offer interest and/or principal deferment options until after graduation or until the student drops to below half time enrollment status. For details concerning several different lenders and loan programs please click here: Search for private student loans
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