Loans

Click here to review the FAU Financial Aid Guide.

What you need to know about Loans!

Loans are a form of financial aid that MUST be repaid. A minimum of half-time enrollment is required for the disbursement of a loan. FAU encourages students to only borrow what is needed to cover their cost of attendance for the academic year.

Information regarding a student’s Federal loans will be submitted to the National Student Loan Data System (NSLDS) and will be accessible by guaranty agencies, lenders, and schools determined to be authorized users of this system. Students can review their Federal Loan History on NSLDS to monitor their progression toward the aggregate limit.

Loan process steps must be completed at two weeks prior to disbursement to ensure that you receive your funds in a timely manner, with the exception of the Short Term Advance.

Federal Direct Loans

These are available to undergraduate and graduate students who enroll at least half-time. Subsidized Federal Direct Loans are awarded to undergraduate students demonstrating financial need. Students are not responsible for interest accrued on Subsidized Direct Loans while in school. Unsubsidized Federal Direct Loans are awarded to students who do not qualify for the Subsidized Direct Loan or do qualify and are still in need of additional funding. Students are responsible for interest accrued on Unsubsidized Direct Loans while in school. Annual Direct Loan borrowing limits for dependent undergraduate students are $5,500 for freshmen, $6,500 for sophomores, and $7,500 for undergraduate students beyond Sophomore standing. Independent undergraduate students may borrow additional unsubsidized loans beyond the above stated limits (additional amount depends on academic standing). Graduate students may borrow up to $20,500 per year in Unsubsidized Direct Loans. Repayment of principal and accrued interest begins six months after the student graduates, withdraws, or drops below half time enrollment. There is no penalty for accepting a partial loan amount.

Direct Subsidized Usage Limits: If you had no outstanding Direct Loan debt as of July 1, 2013, there is a time limit (measured in academic years) for which you can receive Direct Subsidized Loans. This time limit is equal to 150% of the published length of your academic program. Commonly, this time limit is 6 years for students in a first bachelor program and 1.5 years for students in a second bachelor program. If you have received Direct Subsidized Loans for the corresponding time limit, you are no longer eligible to receive additional Direct Subsidized Loans and your outstanding Direct Subsidized Loans will begin accruing interest. Additional information regarding Direct Subsidized Loan “usage limits” can be found at the HERE.

Seniors in their Final Semester: When an undergraduate borrower’s remaining period of study is shorter than a full academic year, the Direct Loan must be prorated based on enrollment. Failure to notify the Student Financial Aid Office prior to the beginning of your final semester may result in immediate repayment of a portion of your Direct Loan. Students who owe a balance to FAU will not receive their diplomas.

Total and Permanent Disability Discharge – A Web site has been implemented for the Total and Permanent Disability (TPD) Discharge process. Borrowers seeking a disability discharge of their FFEL Program loans, Direct Loan Program loans, Federal Perkins Loan Program loans, and Teacher Education Assistance for College and Higher Education (TEACH) Grant service obligations will find complete information at the new TPD Discharge Web site.

Federal PLUS Loans

(FAU Direct PLUS Loan Process)

The Federal Direct PLUS Loan is a low interest loan available to assist the parents of dependent students admitted and enrolled in an undergraduate degree program or graduate students admitted and enrolled in an graduate degree program. To be eligible for the Direct PLUS Loan, the parent borrower or the graduate student borrower should have no adverse credit history. Maximum eligibility is equal to cost of education minus other aid. Repayment of principal and interest begins within 60 days after the loan is fully disbursed. The borrowers may be eligible to defer repayment until student graduates or ceases to be enrolled at least half-time. In order to receive a Direct PLUS Loan, students must first file a Free Application for Federal Student Aid (FAFSA).

Perkins Loan

Federal Perkins Loans are low-interest (5%) federal student loans for undergraduate and graduate students with exceptional financial need. The federal government does not charge interest on the loan while borrowers maintain an enrollment status of half-time or greater, during the nine month grace period, or during authorized periods of deferment. Due to limited funding from the federal government, not all students who are eligible will be able to receive the loan. Also students who are awarded a Perkins Loan are not automatically awarded in subsequent years. Undergraduate students may be eligible to borrow up to a maximum annual amount of $5,500 in an academic year, but no more than $27,500 in aggregate total. Graduate students may be eligible to borrow up to a maximum annual amount of $8,000 in an academic year, but no more than $60,000 in aggregate total. Overall the amount of the Federal Perkins Loan is determined by the Financial Aid office. In order to receive the loan, students will have to complete a Perkins promissory note that is received from the school.

 https://studentaid.ed.gov/types/loans/perkins

 Eligibility

  •  Demonstrate exceptional financial need by filing out the Free Application for Federal Student Aid (FAFSA)
  • Meet Financial Aid eligibility requirements from the school they are attending
  • Enroll at least half time in a degree program

 Loan Repayment

 With the Perkins Loan, the school is the lender in which repayments for that loan will be made to the school or the school’s loan servicer. If students are attending school at least half-time, one will have nine months after they graduate, leave school, or drop below half-time status before beginning repayment. If attending less than half-time, check with the school to find out how long the grace period will be. If a payment is late or if a payment is less than full, one might have to pay a late charge plus any collection costs.

Consolidation

If a borrower is graduating and entering repayment on their Federal Perkins loan, or if one has already entered repayment, a Consolidation Loan can attempt to ease the burden of loan payments. Loan consolidation provides benefits such as low fixed interest rates, a longer repayment period, and a single monthly payment to one lender. However, depending upon the borrower’s specific circumstances, a consolidation loan may or may not be right for them.

For information regarding consolidation of loans, visit: https://loanconsolidation.ed.gov/AppEntry/apply-online/appindex.jsp

Private Loans

Private student loans (also known as alternative loans) are non-federal loans, made by  a lender such as a bank, credit union or state agency.  Federal student loans include many benefits (such as fixed rates and income repayment plans) not typically offered with private loans.  In contrast, private loans are generally more expensive than Federal student loans.  Private loans may be obtained in addition to the Federal student loans.  A student should NEVER consider borrowing from private loan program until they have exhausted all their Federal Loan options first.

Dependent Undergraduate students applying for private loan financing with a parental cosigner are advised to first investigate the options offered by the Federal PLUS program before applying for an private loan. A detailed comparison between the PLUS and Private loan programs can be viewed here - Direct Loan Comparison Worksheet.

PRIVATE EDUCATION LOAN APPLICANT SELF-CERTICATION FORM AND FAU COST OF ATTENDANCE.

Due the enactment of new regulations (Title X - Private Student Loan Transparency and Improvement Act of 2008), a student applying for a private educational loan is required to complete the Private Education Loan Applicant Self-Certification Form. This form must be submitted directly to the lender. To complete this form, information regarding FAU cost of attendance must be provided. Information regarding the total cost of attendance at FAU can be found here.

SOME FACTORS TO BE CONSIDERED WHEN COMPARING PRIVATE LOAN PRODUCTS
  • Focus on the APR.
  • Have an idea of what rate you will qualify for BEFORE you apply.
  • Ask about interest capitalization
  • Ask about borrower benefits
  • Compare rates from different lenders

REMEMBER TO ONLY BORROW WHAT YOU NEED!

Short Term Advance

Click here to review the Terms and Conditions.

A University monetary advance available to degree-seeking students enrolled at least half-time at FAU for assistance with purchasing textbooks, emergency funds relating to educational expenses and unanticipated living expenses until the disbursement of financial aid. Keep in mind that the Short Term Advance is NOT a source to assist with paying your tuition and other related fees.

Maximum loan amount is $750 with a non-refundable processing of $7.50 assessed. Students must meet additional eligibility criteria.

To access the online Short Term Advance Application:

  1. Log on to MyFAU
  2. Click on the "Money Matters!" tab
  3. Click on the "Short Term Advance Application" link

To determine if your Short Term Advance has been received/approved:

  1. Log on to MyFAU
  2. Click on the "Money Matters!" tab
  3. Click on the "View My Financial Aid Information" link
  4. Click on the "Short Term Advance Status" link (For Informational Purposes ONLY)

NOTE:  Remember the first disbursement of the Short Term Advance will occur approximately at least three (3) BUSINESS days before the start of each semester, if the student meets all eligibility criteria (date is subject to change without notice).

 

 Last Modified 12/8/14