LOANS

By filing the FAFSA, students who are enrolled at least half-time will be awarded funds from one or more of the following loan programs. Students are not required to accept the offered loans.

If you wish to borrow loan funds, a Samford Loan Request Form is required to start the loan process; click here to see Lender Choice options. After we received and certify your loan, your lender will notify you and/or your parent to e-sign a Master Promissory Note (MPN). Once your MPN is e-signed and the student is enrolled, loan funds will disburse electronically through EFT (Electronic Funds Transfer) to the student's account in the Bursar's Office no earlier than 10 days before classes begin for the appropriate term. If there is a credit balance at that time, a refund check will be handled and processed through the Bursar's Office. It is your responsibility to make sure your loan has a valid MPN on file with the lender. Delays can occur if you have chosen a lender that does not participate in EFT, as well.

Federal STAFFORD Loans

These are low-interest* student loans that have a six-month grace period**. Most lenders have an origination fee of 3%; please check with your lender for rates and fees as this information can change without our knowledge. Below are the two types of Stafford Loans and their annual loan limits:

  • Subsidized (need-based): Interest* is subsidized by the government through the grace period.

  • Unsubsidized (non-need-based): Interest* is paid by the student with the option to defer interest payments through the grace period.

    On Wednesday, May 07, 2008, President Bush signed into law H.R. 5715, the "Ensuring Continued Access to Student Loans Act of 2008," which is designed to provide continued availability of access to the Federal student loan program for students and families. The new law allows undergraduate students to borrow an additional $2,000 unsubsidized Stafford loan for loans disbursed on/after July 1, 2008.

ANNUAL LOAN LIMITS (May include subsidized and/or unsubsidized funds)
Classification
(hours completed)
Dependent
Independent
Freshman
(0-31 hours)
$5,500 (max sub $3,500)
$ 9,500 (max sub $3,500)
Sophomore
(32-63 hours)
$6,500 (max sub $4,500)
$10,500 (max sub $4,500)
Junior/Senior
(64+ hours)
$7,500 (max sub $5,500)
$12,500 (max sub $5,500)
Law    
$20,500 (max sub $8,500)
Nursing    
$20,500 (max sub $8,500)
Graduate    
$20,500 (max sub $8,500)
Pharmacy
(0-95 undergraduate hrs)
$7,500 (max sub $5,500)
$12,500 (max sub $5,500)
Pharmacy
(1st-3rd year)
 
$33,000 (max sub $8,500)
Pharmacy
(4th year)
$37,167 (max sub $8,500)

 

Federal GRAD PLUS Loans

These are new credit-based student loans only available to graduate students. The Grad PLUS loans accrue interest* and enter into repayment after graduation or less than 1/2 time status; if your loan goes into repayment before this time, contact your lender to request that your loan be deferred. The annual loan limit is equal to the cost of attendance less any other financial assistance the student is receiving. Most lenders have an origination fee of 3%; please check with your lender for rates and fees as this information can change without our knowledge. A FAFSA is required to be offered this loan.

Federal HEALTH PROFESSIONS Loans

These are low-interest (5%), need-based student loans that have a 12-month grace period**. These loans are available to a limited number of first-year and fourth-year pharmacy students who must provide parental information on the FAFSA, complete verification and meet the FAFSA priority filing date. Click here to download the verification worksheet. A FAFSA is required to be offered this loan.

Federal PERKINS Loans

These are low-interest (5%), need-based student loans that have a nine-month grace period**. These loans are available to a limited number of students who meet the FAFSA priority filing date. A FAFSA is required to be offered this loan.

Federal PLUS Loans

These are available to parents of dependent undergraduate students. PLUS loans accrue interest* and enter into repayment 60 days after the second loan disbursement. The annual loan limit is equal to the cost of attendance less any other financial assistance the student is receiving. Most lenders have an origination fee of 3%; please check with your lender for rates and fees as this information can change without our knowledge. A FAFSA is required to be offered this loan.

The "Ensuring Continued Access to Student Loans Act of 2008" also allowed for Parents who borrow on or after July 1, 2008 through the PLUS Loan program, the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least half-time. In essence, this is creating a grace period for Parent PLUS borrowers much like a Stafford grace period.

Borrowers will still have to pay a monthly or quarterly interest payment to their lender if they choose to not begin repayment until after the grace period. Whether borrowers pay monthly or quarterly interest payments, borrowers must work this out with their lender.

PRIVATE Loans

These are available to students who need extra funds to cover the costs associated with their education. Private loans are also available to students who are not eligible to file the FAFSA.

*Interest Rates for Federal Stafford Loans first disbursed on or after July 1, 2006 = 6.8%; subsidized undergraduate Federal Stafford Loans first disbursed after July 1, 2008 = 6%; Federal PLUS Loans = 8.5%

**The grace period is the time from which the student ceases to be enrolled at least half-time, or graduates, until the time repayment for the student loan begins.


SAMFORD UNIVERSITY 800 Lakeshore Drive, Birmingham, AL 35229

TELEPHONE (800) 888-7245 or (205) 726-2905 FAX (205) 726-2738

HOURS Monday-Friday, 8:00 am-4:30 pm CST SCHOOL CODE 001036

 

 

Last updated on Tuesday, June 24, 2008 3:34 PM