Federal Perkins Loan Program
The Federal Perkins Loan Program provides money to students with established need at a low interest rate and long term repayment. The loans bear no interest to the borrower until nine months after graduation or interruption of study; then the interest rate is 5% of the unpaid balance. The minimum monthly repayment is $40.00. Loan repayment may be deferred for periods during which a borrower: (1) is at least a half-time student; (2) is pursuing a course of study in an approved graduate fellowship program or approved rehabilitation training program for disabled individuals excluding a medical internship or residency program; (3) is unable to find full-time employment, but not in excess of three years; (4) may be suffering an economic hardship, but not in excess of three years; and, (5) is engaged in service described under the cancellation provisions.
Trevecca Nazarene University has a limited amount of money available for making awards from the Perkins Loan Fund. In order to use the available funds in the most effective, strategic way to accomplish the mission of the University, it will be our policy to award Perkins Loan Funds only to traditional Undergraduate students.
Federal Direct Stafford Loan Program
- Fixed interest rate of 3.86% for undergraduate students.
- Undergraduate students enrolled for at least 6 credit hours.
- Need based; must apply for Pell Grant (FAFSA).
- Dependent undergraduates: up to $5,500 in the first year, $6,500 in the second year, and $7,500 in the third and fourth years, up to a maximum total of $31,500. Independent undergraduates: up to $7,500 in the first and second years and $12,500 in the third and fourth years, up to a maximum total of $57,500. Students must complete the FAFSA.
Federal Direct Unsubsidized Stafford Loan Program
The annual as well as the aggregate loan limits are the very same as the Subsidized Stafford Loan (less amounts borrowed under that program) for dependent students. However, the independent student can borrow additional funds through the Federal Unsubsidized Stafford Loan Program. Loan limits may vary according to the student’s year in college. The interest rate is 3.86% for all undergraduate students, and the borrower is responsible for accrued interest. Interest may be capitalized at the borrower’s request. Graduate students can borrow up to a maximum of $20,500 per year. The interest rate for graduate students is 5.41%. Students must complete the FAFSA.
Federal Direct Parent Loan Program (Plus)
- Fixed interest rate of 6.41%.
- Repayment starts within 60 days after loan is fully disbursed.
On all the Federal Direct Loan Programs mentioned above, there is an origination fee. These fees will reduce the net amount of the loan proceeds. To qualify, students must complete the Free Application for Federal Student Aid (FAFSA).