Loans

Federal Perkins Loan (formerly National Direct Student Loan).  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 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 ten years. Monthly payments depend on the size of the debt and the length of the repayment period. 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 the student loan office, Student Financial Services, Rutgers, The State University of New Jersey, 65 Davidson Road, Room 310, Piscataway, NJ 08854-8094.

William D. Ford Federal Direct Loans.  Federal Direct Student Loans (Direct Loans) are available for students directly 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 United States citizen or an eligible noncitizen, be enrolled at least half-time per term, be making satisfactory academic progress, have a 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 Direct Subsidized and Unsubsidized 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 on July 1. By law, the interest rate for Direct Loans will not exceed 8.25 percent. Additionally, borrowers are charged an origination fee of up to 4 percent. Graduate students may borrow $8,500 per year. The total debt may not exceed $65,500, including loans for undergraduate years.

Federal Direct Unsubsidized Loan.  This loan is not based on financial need, but all interest charges must be paid by the student. The interest rate is the same as the Federal Direct Subsidized Loan. Students may borrow up to $10,000 per year.

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 or have filed a financial aid application to be considered for these loans.

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 at 800/792-8670.