Federal Perkins Loan (formerly National Direct Student Loan-NDSL). Federal
Perkins Loans are available to students who are enrolled in a minimum
of 6 credits per term, who are citizens or permanent residents of the
United States, and who demonstrate need through the FAFSA. The maximum
amount a graduate student can borrow under this program at Rutgers is
$3,000 per academic year, with maximum aggregate loan amount not to
exceed $40,000 (including undergraduate NDSL and Perkins loan total).
Interest at the rate of 5 percent simple begins nine months after
the borrower ceases to enroll in a minimum of 6 credits per term. It
extends over a maximum repayment period of 10 years. Monthly payments
depend on the size of the debt and the length of the repayment period.
Repayment may be deferred or the loan itself canceled for students who
enter certain forms of public service.
Consistent with federal
regulations, all first-time Federal Perkins Loan borrowers at Rutgers
are required to attend an entrance interview to learn about their
rights under the loan. In addition, Perkins Loan recipients must attend
an exit interview before they graduate or withdraw from school. Rutgers
sends each of its students details about repayment of the Federal
Perkins Loan. The student loan office, part of the Division of Student
Financial Services, is located at 65 Davidson Road, Room 310,
Piscataway, NJ 08854-8093.
William D. Ford Federal Direct Loans. Federal
Direct Student Loans (Direct Loans) are available to students from the
federal government to pay for educational costs. These loans eliminate
the need for an outside lender, such as a bank. To be considered for a
Direct Loan, students must complete the FAFSA. Subsequently, the award
letter issued by Rutgers will list eligibility for the program. Money
awarded to students will be credited directly to their accounts.
Because Rutgers has chosen to participate in direct lending, the
university cannot accept any Federal Stafford applications from
students or their lenders. Since the U.S. Department of Education is
the lender for the Federal Direct Loan program, borrowers will send all
loan repayments to the department, rather than to several lenders.
In general, to be eligible for a Direct Loan, a student must:
- have a high school diploma or a General Education Development
(GED) certificate or meet other standards set by the U.S. Department of
- provide evidence of U.S. citizenship or be an eligible noncitizen,
- be enrolled at least half time per term and be making satisfactory academic progress,
- have a social security number,
- sign a statement of educational purpose,
- not be in default on prior loans or owe refunds to a federal grant program, and
- register with the U.S. Selective Service Administration, if required.
In addition to these requirements, all first-time Federal Direct
Loan borrowers must attend an entrance interview in order to learn
about their rights and responsibilities regarding the loan.
The aggregate limit for Federal Direct Loans, including both subsidized
and unsubsidized amounts, is $138,500 for a graduate or
professional student (including loans for undergraduate study).
Federal Direct Subsidized Loan. This
loan is based on financial need. The government pays the interest on
the loan while the student is attending school. The variable interest
rate is adjusted each year. Effective July 1, 2001, the maximum rate
for the Federal Direct Loan was 5.99 percent. Additionally, borrowers
are charged an origination fee of 1.5 percent. Graduate students may
borrow $8,500 per year. The total debt may not exceed $65,500,
including loans for undergraduate years.
Federal Direct Unsubsidized Loan. This
loan is not based on financial need, and all interest charges must
be paid by the student. The interest rate is the same as that of the
Federal Direct Subsidized Loan. Students may borrow as much as $18,500
per year, less any amount from the subsidized loan program. The total
debt permitted for all subsidized and unsubsidized Direct Loans is
Emergency Loans. Students having a
financial emergency may apply for a university loan of as much as $500.
The interest rate is 3 percent simple, and the loan must be repaid
within the same term. Students must demonstrate that they have an
emergency, and funds must be available.
contact their local financial aid office for more information. If they
are seeking more than the maximum amount, they should make an
appointment with a counselor to discuss long-term assistance. Students
need not be recipients of financial aid or have filed a financial aid
application to be considered for emergency loans. Several graduate
schools offer low-interest or interest-free, short-term loans to
students in their programs. Students should request additional
information from the various deans or directors of each program.