Guide to Financial Aid

Loans are a form of financial aid that students must repay. All students applying for any type of federal student loan must submit the Free Application for Federal Student Aid in addition to the appropriate loan application. Loans are available to both Pennsylvania and out-of-state residents.

General eligibility requirements must be satisfied by all students to receive federal loan assistance:

Loan repayments are serious financial and legal obligations. Students and their families must understand their commitment prior to taking out a student loan. Excessive borrowing and failure to repay loans may have serious adverse effects on a student's future credit rating. Borrowers experiencing difficulty in meeting their repayment responsibilities should immediately notify their lenders. In certain situations, borrowers may be eligible for deferments/forbearance (postponements) of the repayment obligation. Borrowers are obligated to repay the full amount of the loan even if they do not graduate, did not find employment in their field of study, are not satisfied with the education they received, or are having financial difficulty.

Loan forgiveness programs may be available to students in certain degrees or occupations (i.e. Nursing, Education, Armed Forces). For more information contact AES/PHEAA (800)692-7392.

Borrowers with several federal loan programs may be able to obtain a Federal Consolidation Loan that combines all federal loan payments into a single monthly payment. Please note, Private Educational Alternative Loans may not be consolidated into a Federal Consolidation Loan. Consolidated monthly payments may be lower than the combination of individual payments, and the repayment period can usually be extended. Consolidated loans may help borrowers avoid delinquent or default situations. Check with the holder of your loans for more information.

Persons borrowing must notify the lender or loan servicing agency when any of the following conditions arise:

Federal Stafford Loans

There are two types of Federal Stafford Loans: the subsidized Federal Stafford Loan and the unsubsidized Federal Stafford Loan. A subsidized Federal Stafford Loan is one for which the federal government pays the interest while the student (borrower) is in college and during the grace period. Eligibility for a subsidized Federal Stafford Loan is based on family income and financial need established by standards set by the federal government. An unsubsidized Federal Stafford Loan is one for which the student (borrower) is charged interest during the in-college period and the grace period.

Application: Students may apply online at www.bloomu.edu/aid. Students applying for the Federal Stafford Loan will complete the Federal Stafford Loan Master Promissory Note Application (MPN). A borrower using the MPN will usually need only to sign a promissory note once, at the time they first borrow. They may borrow additional loans, based on the same note, during the same year or subsequent years. After the first year, a student will indicate their interest in obtaining a Federal Stafford Loan on the Free Application for Federal Student Aid instead of completing a new loan application. This information will be transmitted to Bloomsburg University for school certification.

Deadline: Federal Stafford Loan applications must be certified by the Office of Financial Aid by the last day of the semester.

Eligibility: Credit history is not required for Federal Stafford Loans. General eligibility requirements, as previously discussed, must be satisfied by all students to receive Federal Stafford Loan assistance.

Loan Limits per Academic Year: Please refer to the following chart for the maximum amount students may borrow in Federal Stafford Loan per academic year. Please note, for periods of study shorter than an academic year, the amounts students can borrow will be less than those listed. In addition, loan amounts may be less if students receive other financial aid that is used to cover a portion of their cost of education. Dependent students will be automatically certified for the maximum amount allowed based upon grade level, cost of education, and other financial aid received. Independent students and dependent students, whose parent has been denied the Federal PLUS Loan, must complete a request form in order for the additional unsubsidized Federal Stafford Loan to be processed.

Maximum Academic Year Loan Limits for Federal Stafford Loans
Undergraduate Level - Dependent Students (Except Students Whose Parents Were Denied PLUS)	*Base Amount	Additional Unsubsidized Loan Amount
	*Base Amount	Prior to July 1, 2008	Effective July 1, 2008
1st Year (Freshman - 0 to 29 credits)	$3,500	$0	$2,000
2nd Year (Sophomore - 30 to 59 credits)	$4,500	$0	$2,000
3rd Year (Junior - 60 to 89 credits)	$5,500	$0	$2,000
4th Year (Senior - 90+ credits)	$5,500	$0	$2,000
5th Year (Teacher Certification & Deficiencies for Graduate Admissions)	$5,500	$0	$2,000
Undergraduate Level - Independent Students and Dependent Students Whose Parents Were Denied PLUS	*Base Amount	Additional Unsubsidized Loan Amount
	*Base Amount	Prior to July 1, 2008	Effective July 1, 2008
1st Year (Freshman - 0 to 29 credits)	$3,500	$4,000	$6,000
2nd Year (Sophomore - 30 to 59 credits)	$4,500	$4,000	$6,000
3rd Year (Junior - 60 to 89 credits)	$5,500	$5.000	$7,000
4th Year (Senior - 90+ credits)	$5,500	$5,000	$7,000
5th Year (Teacher Certification & Deficiencies for Graduate Admissions)	$5,500	$7,000	$7,000
Graduate Level
Each Year	$20,500 - No more than $8,500 of this amount may be in subsidized loans.
*The Base Amount may be either subsidized or unsubsidized as determined by student's eligibility on the FAFSA.

Aggregate Loan Limits: Please refer to the following chart for the maximum amount students may borrow in Federal Stafford Loan for their entire academic career.

Aggregate Loan Limits for Federal Stafford Loans (Effective July 1, 2008)
Dependent Undergraduate Student	Independent Undergraduate Student or Dependent Undergraduate Student with PLUS Denial	Graduate Student
$31,000 -No more than $23,000 of this amount may be in subsidized loans.	$57,500 - No more than $23,000 of this amount may be in subsidized loans.	$138,500 - No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes Stafford Loans received for undergraduate study.

Interest Rate: Interest rates will vary depending upon when the loan was first disbursed:

Fixed Interest Rates for Undergraduate Subsidized Stafford Loans First Disbursed Between July 1, 2008 and June 30, 2011
	Rate
Loan first disbursed between July 1, 2008 and June 30, 2009	6.0%
Loan first disbursed between July 1, 2009 and June 30, 2010	5.6%
Loan first disbursed between July 1, 2010 and June 30, 2011	4.5%
Loan first disbursed between July 1, 2011 and June 30, 2012	3.4%
Loan first disbursed on or after July 1, 2012 will revert to 6.8%	6.8%

Fees: In addition to the interest charges, students may pay an "federal origination fee" and "federal default fee" for Federal Stafford Loans (see below for percentages). The lender may deduct these amounts from the value of the loan. Some lenders/guarantors may choose to pay all or a portion of these fees for the borrower.

Fees for Federal Stafford Loans
	Origination Fee	Default Fee
Loan first disbursed between July 1, 2007 and June 30, 2008	1.5%	1.0%
Loan first disbursed between July 1, 2008 and June 30, 2009	1.0%	1.0%
Loan first disbursed between July 1, 2009 and June 30, 2010	0.5%	1.0%
Loan first disbursed on or after July 1, 2010	0.0%	1.0%

Loan Reductions/Cancellations: Students may request the Federal Stafford Loan be reduced or canceled. The request must be in writing from the student, not the parent. Please include your name, your Bloomsburg University ID Number, and the amount you want the loan reduced to. If the request is made prior to disbursement of funds, please send the request to the Office of Financial Aid. Once disbursement of funds has been made, students have 30 days to request the Business Office to return funds.

Repayment: Federal Stafford Loan repayment begins when students either graduate, withdraw, or enroll less than half-time (less than six credits) and have used the allowable grace period - usually six consecutive months. The monthly repayment amount is set by mutual agreement of the lender and the student, but may not be less than $50. The length of repayment is between 10 and 25 years, depending on the amount borrowed and the type of repayment plan selected. Students may also pay the balance of the loan, plus any interest due, early and without a penalty. For repayment examples, please refer to following chart or to http://www.finaid.org/calculators/loanpayments.phtml.

Federal Stafford Loan-Estimated Repayment Schedule 6.8 % Simple Interest - Standard Repayment
Loan Amounts	Number of Payments	Monthly Payment	Interest Charges	Total Repaid
$1,000	22	$50	$65	$1,065
$3,500	90	$50	$972	$4,472
$4,000	107	$50	$1,344	$5,344
$4,500	120	$52	1,715	$6,215
$5,000	120	$58	$1,905	$6,905
$5,500	120	$63	$2,096	$7,596
$8,500	120	$98	$3,239	$11,739
$10,000	120	$116	$3,810	$13,810
$18,500	120	$213	$7,048	$25,548
$19,000	120	$219	$7,239	$26,239
$23,000	120	$265	$8,763	$31,763
$46,000	120	$530	$17,525	$63,525
$65,500	120	$754	$24,953	$90,453
$138,500	120	$1,594	$52,764	$191,264

Loan Counseling: Federal regulations require that first time Federal Stafford Loan recipients at Bloomsburg University must complete entrance counseling requirements before receiving their loan funds. This must be completed online at: www.bloomu.edu/aid. Federal regulations also require a student to complete exit counseling prior to graduation or at the time a student either drops to less-than half-time enrollment (less than six credits) or withdraws from Bloomsburg University. Exit counseling can provide you with valuable information on loan repayment and is available at the same web site.

Federal PLUS Loans (Undergraduates)

The Federal Parent Loan for Undergraduate Students (PLUS) is available to parents of dependent undergraduate students who want to borrow funds to help pay for educational costs.

Application: Parents may apply online at www.bloomu.edu/aid. Parent borrowers applying for the Federal PLUS Loan will complete the Federal PLUS Loan Master Promissory Note Application (PLUS MPN). A parent borrower using the PLUS MPN will usually need only to sign a promissory note once for each student, at the time they first borrow. To request additional funding in the same or subsequent years, the parent borrower should contact AES/PHEAA (800)692-7392 or their guarantor. This information will be transmitted to Bloomsburg University for school certification.

Deadline: Federal PLUS Loan applications must be certified by the Office of Financial Aid by the last day of the semester.

Eligibility: Parent borrowers must be the dependent student's natural parent, adoptive parent, or in some cases, stepparent. In addition they must be citizens or eligible non-citizens, not in default on a federal student loan, not owe a refund on any federal student aid program, and be credit worthy. General eligibility requirements, as previously discussed, must be satisfied by all students to receive Federal PLUS Loan assistance.

Loan Limits per Academic Year: The maximum parents may borrow in Federal PLUS Loan per academic year is the difference between cost of education minus other financial aid received.

Interest Rate: Interest rates will vary depending upon when the loan was first disbursed:

Fees: In addition to the interest charges, parent borrowers may pay an "federal origination fee" of 3% and "federal default fee" of 1% for Federal PLUS Loans first disbursed on or after July 1, 2006. The lender deducts these amounts from the value of the loan. Some lenders/guarantors may choose to pay all or a portion of these fees for the borrower.

Loan Reductions/Cancellations: Parents may request the Federal PLUS Loan be reduced or canceled. The request must be in writing from the parent borrower, not the student. Please include parent borrwer's name, the student's name, the student's Bloomsburg University ID Number, and the amount you want the loan reduced to. If the request is made prior to disbursement of funds, please send the request to the Office of Financial Aid. Once disbursement of funds has been made, parents have 30 days to request the Business Office to return funds.

Repayment: Beginning July 1, 2008, parents may choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half-time. Accruing interest may either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly. A parent may take up to 10 years to repay the loan, depending upon the amount borrowed. Parents may also pay the balance of the loan, plus any interest due, early and without a penalty.

Federal Graduate PLUS Loans (Graduates)

The Federal Graduate PLUS Loan is available to graduate students who have exhausted their Federal Stafford Loan eligibility in an academic year.

Application: Graduate students may apply online at www.bloomu.edu/aid. Graduate student borrowers applying for the Federal Graduate PLUS Loan will complete the Federal PLUS Loan Master Promissory Note Application (PLUS MPN). A student borrower using the PLUS MPN will usually need only to sign a promissory note once, at the time they first borrow. To request additional funding in the same or subsequent years, the student borrower should contact AES/PHEAA (800)692-7392 or their guarantor. This information will be transmitted to Bloomsburg University for school certification.

Deadline: Federal Graduate PLUS Loan applications must be certified by the Office of Financial Aid by the last day of the semester.

Eligibility: Students must be enrolled at least half-time (six credits per semester) in a degree graduate program. In addition, students must first exhaust Federal Stafford Loan eligibility and be credit worthy. General eligibility requirements, as previously discussed, must be satisfied by all students to receive Federal Graduate PLUS Loan assistance.

Loan Limits per Academic Year: The maximum students may borrow in Federal Graduate PLUS Loan per academic year is the difference between cost of education minus other financial aid received.

Interest Rate: Federal Graduate PLUS Loans first disbursed on or after July 1, 2006 are at a fixed rate of 8.5%.

Fees: In addition to the interest charges, student borrowers may pay an "federal origination fee" of 3% and "federal default fee" of 1% for Federal Graduate PLUS Loans first disbursed on or after July 1, 2006. The lender deducts these amounts from the value of the loan. Some lenders/guarantors may choose to pay all or a portion of these fees for the borrower.

Loan Reductions/Cancellations: Students may request the Federal Graduate PLUS Loan be reduced or canceled. The request must be in writing from the student, not the parent. Please include your name, your Bloomsburg University ID Number, and the amount you want the loan reduced to. If the request is made prior to disbursement of funds, please send the request to the Office of Financial Aid. Once disbursement of funds has been made, students have 30 days to request the Business Office to return funds.

Repayment: Federal Graduate PLUS Loan repayment for both the principal and the interest generally begins within 60 days after the loan is fully disbursed. There is no grace period for these loans. This means interest starts to accrue as soon as the first disbursement is made. The student may qualify for an in-school deferment as long as they are enrolled at least on a half-time (six credits per semester) basis. A student may take up to 10 years to repay the loan, depending upon the amount borrowed. Students may also pay the balance of the loan, plus any interest due, early and without a penalty.

Loan Counseling: Federal regulations require that first time Federal Graduate PLUS Loan recipients at Bloomsburg University must complete entrance counseling requirements before receiving their loan funds. This must be completed online at: www.bloomu.edu/aid.

Federal Perkins Loans

The Federal Perkins Loan is usually packaged with other forms of aid, such as grants and work study. Students who are interested in a Federal Perkins Loan for the summer - and who have submitted the Free Application for Federal Student Aid - should schedule an appointment between March 15 and April 25, 2008 with the university's Director of Financial Aid.

There are provisions whereby students may be eligible to have the Federal Perkins Loan canceled over a five-year period, i.e., students who work with the handicapped or within a geographic area that is classified by the U.S. Department of Education as a poverty area. For more information, please see www.studentaid.ed.gov.

Application: Students must submit the Free Application for Federal Student Aid no later than March 15, 2008, for the 2008-2009 academic year. A separate application is not required at the time the Federal Perkins Loan is awarded, however a student will be required to sign a promissory note prior to disbursement of monies.

Deadline: Federal Perkins Loans must be certified by the Office of Financial Aid by the last day of the semester. However, students must submit the Free Application for Federal Student Aid no later than March 15, 2008, for the 2008-2009 academic year to be considered for this loan.

Eligibility: Federal Perkins Loan recipients must demonstrate a financial need and be enrolled or accepted as a degree undergraduate students. General eligibility requirements, as previously discussed, must be satisfied by all students to receive Federal Perkins Loan assistance.

Loan Limits per Academic Year: The Federal Perkins Loan ranges from $200 to $4,000 per academic year.

Aggregate Loan Limits: The maximum amount students may borrow in Federal Perkins Loan for their undergraduate academic career is $20,000.

Interest Rate: Federal Perkins Loans are at a fixed rate of 5% - based on current regulations.

Repayment: Federal Perkins Loan repayment begins when the students either graduate, withdraw, or enroll less than half-time (less than six credits) and have used the allowable grace period - usually nine consecutive months. A student may take up to 10 years to repay the loan, depending upon the amount borrowed. Students may also pay the balance of the loan, plus any interest due, early and without a penalty.

Private Educational Alternative Loans

While Bloomsburg University does not encourage excessive borrowing, we realize that not all students can meet their educational expenses with traditional sources of financial aid. Private Educational Alternative Loans are available through many lenders. We encourage student borrowers to carefully investigate these loan programs. Students are encouraged to contact the Office of Financial Aid prior to pursuing Private Educational Alternative Loans. Students should first exhaust all other sources of funding including Federal Stafford Loan, additional Federal Stafford Unsubsidized Loan based upon Parent PLUS Denial, Federal PLUS Loan (undergraduate only), and Federal Graduate PLUS Loan (graduate only) before borrowing a Private Educational Alternative Loan.

If the student borrower has an insufficient credit history and/or proof of income, a co-signer will be required. (Although a graduate student may have sufficient credit to obtain a Private Educational Alternative Loan on their own, ask the lender if the fee(s)/interest rate would be reduced on a graduate level loan if there were a co-signer.)

Lenders may charge a fee on a Private Educational Alternative Loan. Many times the fee is based on the credit history of the co-signer.

Private Educational Alternative Loans do not have a cap on the interest you will be charged. Interest rates may be adjusted monthly or quarterly, depending on the loan product you choose.

Do not borrow excessively. The Private Educational Alternative Loan you are applying for, as well as your Federal Stafford Loan, will go into repayment typically six months after you graduate or drop to less-than half-time enrollment (less than six credits). Grace periods on Private Educational Alternative Loans vary by lender. Remember you will also have other expenses (rent, car payments, insurance, utilities) after graduation. Do not overwhelm yourself with debt burden.

We recommend that if you have utilized a Private Educational Alternative Loan in the past, you remain with that lender. This will help limit the number of repayment obligations you will incur.

We suggest that you contact individual lenders to obtain as much information on the loan product prior to making a decision on which loan you will apply for. If you have "special circumstances" (not making satisfactory progress, less-than-half time enrollment, non-degree student, or past due balance) pick a loan product that will lend for your specific circumstance(s).

Information you may want to obtain and compare when deciding which loan is best for you is:

After reviewing the information on the various Private Educational Alternative Loans, complete only one application. Applying for several loans will slow down the process and could adversely affect your credit rating. Return the loan application directly to the lender, not to the Office of Financial Aid.