Federal Subsidized Stafford Loan
Available to students demonstrating financial need who are enrolled at least half time in eligible degree and certificate programs. The interest rate is fixed at 6.8%. The Federal Government subsidizes interest on this loan until the repayment period begins, usually six months after the student leaves the University or drops below half-time status. The lender may deduct up to 2.5% in fees. Students may borrow up to $8,500 per year.
Federal Unsubsidized Stafford Loan
This non-need-based program is very similar to the Federal Subsidized Stafford Loan, with the exception that the interest is not paid by the Federal Government. The student is responsible for any accrued interest from the time of the first loan disbursement. The student has the option of paying the interest while in school or during other periods of deferment, or having the accrued interest capitalized when the loan repayment period begins. Capitalized interest is added to the student's principal loan balance. All other terms and conditions of this program are the same as the Federal Subsidized Stafford Loan.
Graduate students who demonstrate sufficient need may borrow through the Subsidized Stafford Loan program and an additional $12,000 per year through the Unsubsidized Stafford Loan program.
Disbursement of Loan Funds
The UNE Financial Aid Office determines the disbursement date of student loan proceeds.
Funds will not be disbursed earlier than ten days prior to the start of a semester. The dates listed here are recommended disbursement dates for lenders to release the funds to the school. This is not the date that you will receive a refund from the university. The UNE Disbursement Schedule lists the disbursement dates for each program.
UNE's Recommended Lenders for the Federal Stafford Loan
If 2008/2009 will be the first time that you will be borrowing a Federal Stafford Loan at the University of New England, you must complete a Supplemental FInancial Aid Application. This form is required of all students applying for financial aid.
UNE has researched numerous lenders to provide you with what we feel are the best options available to you. We base our selection on benefits offered to the student, to include fee waivers and repayment incentives (to include % of borrowers who qualify for the benefit); customer satisfaction, to include customer service experience based on student feedback and our own experience when contacting the lender. Once you decide on a lender that you wish to borrow through, you may select that lenders link to complete the Master Promissory Note (MPN), required to receive loan funds.
Our recommended lenders for the 2008/2009 academic year are:
Recent legislation, effective as of Oct. 1, 2007, has caused lender benefits to change. Please contact the lender directly for the most up to date loan terms.
Federal Direct Loan Program
website
800-848-0979
Complete the MPN for the Federal Direct Stafford Loan
Citizens Bank
website
800-708-6684
Complete the MPN for a Federal Stafford Loan through Citizen's Bank
Citibank
website
800-967-2400
Complete the MPN for a Federal Stafford Loan through Citibank
Students also have the option to write in a lender choice on the Supplemental Financial Aid Application. You must include the lender code along with the lender name, so that we may electronically certify the loan.
Returning borrowers of the Federal Stafford Loan Program will continue to be processed through the lender they borrowed through in previous years.
Federal Graduate PLUS Loan
This federal loan program is credit based and has a fixed interest rate of 8.5%. Loan fees of up to 4% are withheld at the time of disbursement. Students may select this option (or the second option is alternative loans listed in the next section) to fill the Supplemental Loan Eligibility listed on their award letter. You may contact the lender directly (either on-line at the link included below or on the phone) to apply for preapproval of this loan.
UNE has researched numerous lenders to provide you with what we feel are the best options available to you. We base our selection on benefits offered to the student, to include fee waivers and repayment incentives (to include % of borrowers who qualify for the benefit); customer satisfaction, to include customer service experience based on student feedback and our own experience when contacting the lender.
First time borrowers of the Federal Graduate PLUS Loan must complete on-line entrance counseling prior to receiving the loan funds.
There are two steps to do when applying for Graduate PLUS Loan:
UNE's recommended lenders for the Graduate PLUS Loan Program for the 2008/2009 academic year are:
Recent legislation, effective as of Oct. 1, 2007, has caused lender benefits to change. Please contact the lender directly for the most up to date loan terms.
Federal Direct Graduate PLUS Loan
Apply for the loan at the Direct Loan website. This is where you will complete the Master Promissory Note (MPN) for student loans as well as request a credit check for approval of the loan.
Citizens Bank
800-708-6684
Apply for a Federal Graduate PLUS Loan with Citizens Bank.
Citibank
800-967-2400
Apply for a Federal Graduate PLUS Loan with Citibank
Alternative Loans
Students often turn to alternative loans as a means of providing additional financial resources for living expenses while attending the University. This is the second option or loan type for students to access to fill the supplemental loan eligibility listed on their award letter. In general, these loans do not have interest rate "caps", nor can they be consolidated with federal student loans like Stafford Loans.
Another important difference between alternative loans and other types of student loans is the need for the borrower to have satisfactory credit. In some cases, applicants who do not meet the lender's credit criteria may have the option of applying with a credit-worthy co-borrower. It is highly recommended that all potential borrowers examine their credit report prior to applying for an alternative loan. The following credit reporting agencies can provide you with a copy of your credit report. (Residents of some states will be assessed a fee from the credit reporting agency.)
Equifax
P.O. Box 105496
Atlanta, GA 30348-5496
(800) 997-2493
Website
Experian
P.O. Box 2104
Allen, TX 75013-2104
(888) 397-3742
Website
Trans Union
P.O. Box 2000
Chester, PA 19022
(800) 888-4213
Website
The Financial Aid Office recommends that you request a free copy of your credit report annually, at annualcreditreport.com
If you wish to borrow an alternative loan, click on Alternative Loan Lenders for a comparison of each program's terms and conditions. Students wishing to apply for an Alternative Loan are strongly encouraged to apply for a pre-approval (no earlier than 90 days prior to the start of classes) through one of our recommended Alternative Loan programs. Students may apply on-line or over the telephone. Once you have applied, allow 2 weeks for processing time.
Should I borrow a Graduate PLUS Loan or a Private / Alternative Loan?
For students who are not sure which program is a better option for them to borrow their Supplemental Loan Eligibility through, view a comparison of the two types of programs. Please note, this is just a comparison tool created by Total Higher Education (T.H.E.). T.H.E. does not currently participate in the Graduate PLUS Loan Program, so you will not be able to apply for the Federal Graduate PLUS Loan at this site.