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Educational Loans
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Educational loans of various types are available to assist with educational expenses. The following information concerns those loans and the process at Hofstra.
Federal Loans
Federal Perkins Loans
Federal Perkins Loans are need-based loans for undergraduate and graduate students awarded by the University. These loans have a 5% interest rate. You will be considered for this loan when you file the FAFSA; you do not need to file a separate application. Undergraduate students may borrow up to $4,000 in an academic year, but no more than $20,000 aggregate. However, the amount is determined by the Office of Financial Aid based on available funds. Repayment begins six months after graduation, termination of your student status, or after you are enrolled on a less than half-time basis and no interest will accrue until you enter repayment.
Federal Stafford Loans
Federal Stafford Loans are need-based loans provided directly to students through banks or other lending institutions. The amount you can borrow each year depends on your grade level. As of July 1, 2006, the Federal Stafford Loan interest rate is fixed at 6.8%. In your first year, you can borrow up to $3,500; in your second year, up to $4,500; and in succeeding years, up to $5,500, with a maximum aggregate amount of $23,000.
The Stafford annual loan limit for a student enrolled in a graduate or professional program of study is $20,500.00 for each academic year, with subsidized loans comprising no more than $8,500.00 of the total amount borrowed. A graduate or professional student's unpaid principal amount of Stafford loans (including all SLS and Direct Stafford loans received or any portion of an outstanding consolidation loan that fully repaid such loans) may not exceed $138,500.00. Subsidized Stafford loans may comprise no more than $65,000.00 of the total amount borrowed. If you qualify for the interest subsidy based on your need, the Federal government will pay the interest while you are in school until six months after your studies have ended. You must then begin repayment of principal and interest.
If you do not have sufficient need to qualify for a subsidized loan, you may qualify for an unsubsidized loan. You are responsible to pay the interest on this loan while you are in school and during the summer or having the interest capitalized. Repayment of principal and interest begins six months after your studies have ended.
Students interested in Federal Stafford Loan funding must be enrolled at least half time (6 credits each semester for undergraduates and 4.5 credits each semester for graduate students). Two federal loan requirements to be aware of when borrowing Federal Stafford and Federal PLUS loans are below; check your loan disclosure statement you receive from your lender for information on your loans expected disbursement dates to the University.
- Federal Stafford Loans requested or certified for a single semester must be split in two disbursements, the first at the start of the semester and the second half way through the semester.
- First year, first time undergraduate students who are borrowing a Federal Stafford Loan are subject to a delayed first disbursement date (30 days after the start of the first semester they attend).
Important Note: If you are a first time borrower at Hofstra you must complete an entrance interview before your loan is processed. We recommend that you complete this requirement as soon as you decide that you want a loan to avoid delays in processing. You can follow this link to complete your entrance interview right now. Exit Interviews are required upon graduation, or when enrollment becomes less than one-half time at Hofstra.
| Credits Earned | Academic Level | Stafford Eligibility subsidized / unsubsidized |
Unsubsidized Stafford Eligibility |
|---|---|---|---|
| 0-23 | 1 | $3,500.00 | $4,000.00* |
| 24-57 | 2 | $4,500.00 | $4,000.00* |
| 58-88 | 3 | $5,500.00 | $5,000.00* |
| 89 + undergraduate | 4 | $5,500.00 | $5,000.00* |
| Graduate programs | ALL | $8,500.00 | $12,000.00 |
* Independent Undergraduate Students only. Dependent students and their parents may borrow through the Parent Loan for Undergraduate Students (PLUS) program to supplement the student Stafford eligibility. If a parent is denied PLUS loan funding, students may be eligible for additional unsubsidized funding. Federal Stafford subsidized loan eligibility may vary based on family contribution, cost of attendance and other factors.
Federal Parent Loans for Undergraduate Students (PLUS)
Federal PLUS Loans are for parent borrowers. These loans provide additional funds for educational expenses that may are not covered by financial aid the student is receiving. The annual interest rate is fixed at 8.5% as of July 1, 2006. Repayment of principal and interest begins 60 days after the loan is disbursed.
***The PLUS Loan Master Promissory Note application: This one-time initial promissory note will allow parent borrowers to use the same promissory note for future additional loan requests (up to 10 years) for the same student. Requirements to borrow future loans or additional loan amounts will be as simple as the parent contacting the lender with an additional amount requested, the loan term the amount is for and the lender will perform another credit check before notifying the University.