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The Graduate School of Applied and Professional Psychology
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  Graduate School of Applied and Professional Psychology 2005-2007 Financial Aid Sources of Financial Aid Loans  


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 SelectiveService 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 entranceinterview 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 maximumrate 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 Universityof 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.


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.


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).

For additional information, contact RU-info at 732/932-info (4636) or
Comments and corrections to: Campus Information Services.

2005 Rutgers, The State University of New Jersey. All rights reserved.