Federal Perkins Loans. 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 $2,000 per academic year, with maximum aggregate loan amount not to exceed $40,000 (including undergraduate National Direct Student Loans and Perkins Loans).
Interest at the rate of 5 percent begins nine months after the borrower ceases to enroll in a minimum of 6 credits per term and extends over a maximum repayment period of 10 years. Monthly payments of at least $40 are required. Deferral of repayment is permitted for certain kinds of federal service, and cancellation of loans is permitted for certain public service positions.
Consistent with federal regulations, all first-time Federal Perkins Loan borrowers at Rutgers are required to attend an entrance interview in order to be informed of their rights and responsibilities regarding the loan. In addition, Federal Perkins Loan recipients must attend an exit interview prior to graduation or withdrawal from school. Further details and procedures regarding the repayment of the Federal Perkins Loan are sent to each student recipient by Rutgers, The State University of New Jersey, Office of Student Loans, Division of Accounting, 65 Davidson Road, Piscataway, NJ 08854-8094.
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 for which students are eligible 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 approved by the U.S. Department of Education, be a U.S. citizen or an eligible noncitizen, be enrolled at least half time per term, 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 be informed of 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 interest rate is variable; that is, it is adjusted each year. Effective July 1, 2002, the interest rate for the Federal Direct Loan is 3.46 percent. Additionally, borrowers are charged an origination fee of 3 percent. Graduate students may borrow $8,500 per year. The total debt may not exceed $65,000, 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 up to $18,500 per year, less any amount from the subsidized loan program. The total debt permitted for all Stafford and Direct Loans is $138,500.
Law Access/Law Loans and Other Alternative Loan Programs. The law school participates in all state and national loan programs, which enables a student to borrow the full estimated cost of education less other aid. These loan programs are considered to be private, not administered by either the federal or state government. Generally, a student may borrow up to $15,000 per year, or a total loan portfolio (including federal loans) of $120,000. These loans usually carry a variable rate of interest and are subject to the student passing a credit check. Additional information about these programs is available from the financial aid office.
Emergency Loans. Students who are experiencing a financial emergency may apply for a university loan of up to $300 (up to $500 in an extreme case). The interest rate is 3 percent simple. An emergency need must be demonstrated and funds must be available.
Students should contact their local financial aid office for additional information. If loans in excess of this amount are required, an appointment with a counselor is recommended. Students do not need to be recipients of financial aid nor have filed a financial aid application to be considered for these loans.
Note: Quoted interest rates may change at any time. Subsequent program regulations may change the terms of eligibility and repayment.
