William D. Ford Federal Direct Stafford Loans.
loans are available for students directly from the federal government
to pay for educational costs. They 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 law 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 valid social security
number, 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 Subsidized Stafford and
Direct Unsubsidized Stafford Loan borrowers must complete an entrance
interview in order to be informed of their rights and responsibilities
regarding the loan.
The aggregate lifetime limit for Federal
Direct Stafford Loans, including both subsidized and unsubsidized
amounts, is $138,500 for a graduate or professional student
(including loans for undergraduate study).
Federal Direct Subsidized Stafford Loan.
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. The maximum rate for the
Federal Direct Stafford Loan is 8.25 percent. Additionally, borrowers
are charged an origination fee of up to 4 percent. Graduate students
may borrow a total of $8,500 each year. The total debt may not exceed
$65,500, including loans for undergraduate years.
Federal Direct Unsubsidized Stafford Loan.
loan is not based on need. All interest charges must be paid by
the student. The interest rate is the same as for the Federal Direct
Stafford Loan programs. Students may borrow up to $10,000 per year or
up to $18,500 per year if they do not qualify for a subsidized Stafford
Federal Perkins Loan
are available on a limited basis to graduate students who are citizens
or permanent residents of the United States. The Perkins Loan is
awarded to students who demonstrate need through the FAFSA. The amount
of the loan is contingent upon available funds.
the rate of 5 percent begins nine months after graduation, or after the
borrower ceases to be enrolled in a minimum of 6 credits per term, and
extends over a maximum repayment period of 10 years. Deferment of
repayment is permitted for certain kinds of federal service, and
cancellation of loans is permitted for certain public service work.
All first-time Perkins Loan borrowers at Rutgers are required to
complete an entrance interview in order to be informed of their rights
and responsibilities regarding the loan. In addition, Perkins Loan
recipients must attend an exit interview prior to graduation or
withdrawal from college. Further details and procedures regarding the
repayment of the Perkins Loan will be sent to each student recipient by
the Student Loan Office, Division of Student Financial
Services, Rutgers, The State University of New Jersey, 65 Davidson
Road, Piscataway, NJ 08854-8093.
Fannie Bear Besser Emergency Loan.
experiencing unexpected financial difficulties may request a maximum of
$500 through the law school`s short-term emergency loan, known as the
Fannie Bear Besser Emergency Loan. This loan is interest-free, but must
be repaid within 90 days. Loans must be certified by the law school`s
coordinator of financial aid, and are subject to the availability of
Private Educational Loan Program.
educational loans are available to bridge the gap between a student`s
financial aid award package and the university`s stated cost of
attendance. These loans must be certified by the university, and the
borrower must be creditworthy. Additional information is available at
the law school and at all university financial aid offices.
University Emergency Loans.
who are experiencing a financial emergency may apply for a
university loan for up to $500. The interest rate is 3 percent, and the
loan must be repaid within the same term. An emergency need must be
demonstrated and funds must be available.
contact their local financial aid office for additional information. If
loans in excess of $500 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