Loans
Federal Family Education Loan Program (FFELP) is a major form of self-help aid. It is available through the Federal Family Education Loan (FFEL) Program. Under the FFEL Program, the funds for your loan are lent to you from a bank, credit union, or other lenders that participate in the FFELP. The Federal Stafford Loan is a low-interest education loan designed for undergraduate and graduate students. This is a “government loan” meaning that it is guaranteed or insured by the federal government.
Types of Loans:
There are two types of Stafford Loans: subsidized loan and unsubsidized loan. Depending on household income, a student may be eligible for one or both loans. Students will be considered first for a Subsidized Stafford loan.
- Subsidized Stafford Loan: the government pays the interest on the loan while students attend school at least half time.
- Unsubsidized Stafford Loan: the students pay the interest on the loan while they are in school at least half time. Students can pay interest monthly or quarterly, or they can opt to have their lender capitalize the interest and add it to the loan principal.
The interest rate is variable (subject to change) but is capped at (will never exceed) 8.25%. The interest rate is adjusted each July 1 as mandated by the Department of Education. The current interest rate is 3.37% for loans going into repayment between July 1 and June 30.
Two fees are deducted from the loan funds and are included in the amount a student will pay back. The U.S. Department of Education charges an origination fee of 3.00% and the loan guarantor charges an insurance premium of up to 1.00%.
Repayment begins six months after borrower leaves school or drops below half-time enrollment.
Federal PLUS (Parent Loan for Undergraduate Students) is a low-interest education loan designed specifically for parents of undergraduate dependent students. This is a “government loan” meaning that it is guaranteed by the federal government. Eligibility for the PLUS Loan is not based on financial need so parents at all income levels are welcome to apply. However, LSU Alexandria requires that the student complete the FAFSA prior to certification of the loan. Qualified applicants must pass a credit check. Parents may borrow up to the full cost of education minus other financial aid received. This means that parents may borrow only up to the amount not covered by scholarships, grants, student loans, etc. Variable rate not to exceed 9.00% adjusted each July 1. To apply, parents will need to get a pre-approved application from the lender of their choice and then complete a PLUS application with LSU Alexandria. Parents usually begin repayment of the loan upon receipt, but may want to contact the lender about a deferment while the student is in school.
Loan Limits:
| Dependent |
Annual Loan Limit |
Lifetime Loan Limit |
| Freshman |
$3,500 |
| Sophomore |
$4,500 |
$23,000 |
| Junior/Senior |
$5,500 |
| Independent |
Annual Loan Limit |
SUB AMT |
UNSUB AMT |
Lifetime Loan Limit |
|
| Freshman |
$7,500 |
$2,625 |
$4,000 |
| Sophmore |
$8,500 |
$3,500 |
$4,000 |
$46,000 |
| Junior/Senior |
*$10,500 |
*$5,500 |
*$5,000 |
*Provided you are enrolled in a 4-yr degree program offered by LSU Alexandria