More information on alternative loan lenders, programs, and application processes
There are a number of types of loans available to students.
Federal Direct Stafford Loan
Subsidized Federal Direct Stafford loan eligibility is determined by the FAFSA results and the Financial Aid Office. The Subsidized Federal Direct 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 Federal Direct 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 are “capitalized” which means they accrue 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*
|Class / Student Type||# Hours||Amount Available|
|Freshman||1-29||$5,500 - No more than $3,500 of this amount may be in subsidized loans|
|Sophomore||30-59||$6,500 - No more than $4,500 of this amount may be in subsidized loans|
|Junior||60-89||$7,500 - No more than $5,500 of this amount may be in subsidized loans|
|Senior||90+||$7,500 - No more than $5,500 of this amount may be in subsidized loans|
|Graduate Student||N/A||$20,500 Unsubsidized|
*All maximums may be lower if the educational budget is lower
Additional unsubsidized Federal Direct 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 Federal Direct Subsidized/Unsubsidized Stafford loan is 4.53% for loans disbursed on or after July 1, 2019 and before July 1, 2020. Annual loan amounts are typically divided equally between each semester enrolled.
Malone awards Federal Direct Stafford loan, subsidized or unsubsidized, based on eligibility. The new borrower must complete the online Entrance Counseling session and do the online eMPN in order for Malone to receive loan disbursements. For subsequent years’ loan awards, borrowers will receive loan disbursements based on the original eMPN for up to 10 years.
To apply for the federal direct Stafford Loan:
Federal Direct PLUS Loan (Parent Loan for Undergraduate Students)
The Federal Direct 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 7.08%. Repayment begins 60 days after the loan is fully disbursed.
To apply for the federal direct plus:
Complete the eMPN for the Federal Direct PLUS
Alternative student loans
Alternative loans are private bank loans in the student’s name and usually require a cosigner. 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 loans borrowed to keep total loan debt manageable and recommends the use of this type of loan be limited, using all Stafford and Plus loan 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.