Loans

William D. Ford Federal Direct Stafford Loans. These 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 semester, 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. 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, adjusted each year for loans disbursed prior to July 1, 2006. The interest rate is fixed at 6.8 percent for loans disbursed after July 1, 2006. 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. This 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 Subsidized Stafford Loan programs. Students may borrow up to $12,000 per year or up to $20,500 per year if they do not qualify for a subsidized Stafford loan. These new maximum amounts are effective for the 2007-08 academic year.

Federal Perkins Loan. These loans 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.

Interest at 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 semester, 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. Students 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 funds.

Private Educational Loan Program. Private 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. Students 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 semester. 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 $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 loans.