William D. Ford Federal Direct Student Loans
Federal Direct student loans allow students and parents to borrow money
from the federal government to pay for education, eliminating the need
for an outside lender, such as a bank. Students must complete the FAFSA
to be considered for a Federal Direct student loan. Money for which
students are eligible is credited directly to their accounts. Because
Rutgers participates in this program, it cannot accept any Federal
Stafford Loan applications from students or their lenders. Since the
U.S. Department of Education is the lender for the Federal Direct
student loan program, borrowers send all loan repayments to the U.S.
Department of Education rather than to several lenders.
In
general, to be eligible for a Federal Direct student loan, a student
must 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 federal grant programs, and
if required, have registered with the Selective Service
Administration.
In addition to these requirements, all
first-time Federal Direct Stafford/Ford Loan and Federal Direct
Unsubsidized Stafford/Ford Loan borrowers must attend both an
entrance interview in order to be informed of their rights and
responsibilities regarding the loan and an exit interview prior to
withdrawal from college or graduation.
Federal Direct Stafford/Ford Loan.
This
loan is based on financial need. The federal 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. The
maximum rate for the Federal Direct Stafford/Ford Loan is 8.5
percent. Additionally, borrowers are charged an origination fee of 4
percent. Students may borrow $18,000 per year, cumulatively, in both
Federal Direct Stafford/Ford Loans and Federal Direct Unsubsidized
Stafford/Ford Loans.
Federal Direct Unsubsidized Stafford Loan.
This
loan is not based on need. All interest charges must be paid by the
student. The interest rate and loan maximums are the same as for the
Federal Direct Stafford Loan.
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 the maximum aggregate loan
amount not to exceed $30,000 (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 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 services.
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, Student Loans, Division of Accounting,
65 Davidson Road, Piscataway, NJ 08854-8094.
Emergency Loans
Students who are experiencing a financial emergency may apply for a
university loan for up to $500. The interest rate is 3 percent simple,
and the loan must be repaid within the same term. 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.
GSAPP Fund
These funds are used to provide emergency, interest-free loans to
students in temporary need of financial assistance. Students may apply
for these funds through the dean`s office.
NJCLASS Loans
The NJCLASS, initiated by the State of New Jersey and administered by
the New Jersey Higher Education Assistance Authority (NJHEAA), is a
loan program that makes loans available to students regardless of
income level. Students must be permanent New Jersey residents
classified as citizens or eligible noncitizens of the United States for
at least six months prior to filing the NJCLASS Loan application.
Students also must file all financial aid information required by the
school to determine the student`s eligibility for Federal Direct Loans
and must accept loan funds from these programs, if eligible, before
applying for NJCLASS Loan funds. There is no annual aggregate loan
limit and the interest rate may be fixed or variable. For more
information about NJCLASS, call the NJHEAA Financial Aid Hotline
(800/792-8670).
