Before you borrow from any loan program, we strongly recommend that you consider your total projected borrowing for 4 years of education, requirements of repayment, and your reasonable ability to repay the loans.
Federal Direct Student Loan (“FDSL”)
Federal Direct Student Loans (also known as stafford Loans) are low-interest loans from the U.S. Department of Education that currently carry a fixed interest rate of 3.86% for subsidized loans and 3.86% for unsubsidized loans. The loan is made to you, the student, and you are responsible for repayment. You must file a FAFSA to receive a Federal Direct Student Loan.
Depending on your demonstrated financial need, you may qualify for either a subsidized or unsubsidized FDSL. Subsidized FDSLs do not accrue interest while you are enrolled in school at least half-time. Unsubsidized FDSLs begin to accrue interest immediately. Repayment does not begin until 6 months after you cease to be enrolled at least half time.
The amount you can borrow depends on the number of credits you have successfully completed. If you have completed fewer than 30 credits, you may borrow up to $5,500 per year. If you have completed 30-59 credits, you may borrow up to $6,500 per year. And if you have completed 60 credits or more, you may borrow up to $7,500 per year. A 1.05% fee is deducted from the gross loan amount before the funds are forwarded to the College, half in each semester.
Federal Perkins Loan
Federal Perkins Loans are low-interest loans from the U.S. Department of Education that carry a fixed interest rate of 5%.
Eligibility for a Perkins Loan is based on exceptional financial need as determined through filing a FAFSA and is subject to the availability of limited funds. Repayment of the loan begins 9 months after you finish school, and the minimum monthly payment is $40.
Because of the College’s concern for student debt levels, the Perkins Loan is used to supplement the FDSL. Except in extreme situations, total student borrowing awarded by the college in any given year is limited to a maximum of $7,500. Once your FDSL reaches maximum level, it is unlikely that you will be awarded a Perkins Loan as well.
At Stonehill, the Perkins Loan is considered a secondary loan source. Therefore, your Perkins Loan will be canceled if you decline your FDSL.
Massachusetts No Interest Loan (“NIL”)
The Commonwealth of Massachusetts provides limited loan funds to Massachusetts students who meet strict state eligibility criteria as determined on the FAFSA.
Awarded by the College, No Interest Loans are interest-free throughout the life of the loan. Repayment of the loan begins six months after you finish school.
Because of the College’s concern for student debt levels, the NIL is used to supplement the FDSL. Except in extreme situations, total borrowing in any given year is limited to a maximum of $7,500. Once your FDSL reaches maximum level, it is unlikely that you will be awarded a NIL as well.
At Stonehill, the NIL is considered a secondary loan source. Therefore, your NIL will be canceled if you decline your FDSL.