Limited funds are available
from scholarships, grants, low-interest loans, and part-time
employment. Application for such aid is made by completing the Free
Application for Federal Student Aid (FAFSA), available at
http://www.fafsa.ed.gov. Paper applications are available from most
college and university financial aid offices, including Rutgers.
All students are encouraged to file an application for financial aid.
Grants
New Jersey State Grant.
Full-time graduate
students who are classified as New Jersey residents for tuition
purposes and who demonstrate financial need are eligible to receive a
New Jersey State Grant. Amounts vary from $200 to $1,000 per year and
are dependent upon available funds. Grants are renewable.
Applicants must complete the FAFSA form. EOF grant recipients are not
eligible.
Educational Opportunity Fund (EOF).
New Jersey
residents who are full-time students and who can demonstrate
backgrounds of financial and academic hardship are eligible for EOF
grants ranging from $200 to $2,650. Students who received EOF grants as
undergraduates are presumed eligible if they fall below the maximum
income parameters required for all recipients of this state grant.
Graduate students who did not receive EOF grants as undergraduates, but
feel that they come from backgrounds of financial hardship and wish to
be considered, should contact the Office of Financial Aid for
information. The grants are renewable for the duration of the student`s
degree work, subject to continued student eligibility and provided
satisfactory academic progress is made. Applicants must complete the
FAFSA form.
Loans
Federal Perkins Loan.
This loan is based on need. Annual awards
vary according to fund availability but cannot, by federal regulation,
exceed $6,000. Federal regulation limits the maximum aggregate loan
amount for graduate and professional students to $40,000, including
National Direct Student and Perkins Loans borrowed as an undergraduate
student.
Interest at the rate of 5 percent begins nine months
after the borrower ceases to enroll on a half-time basis per term.
Repayment extends over a maximum of 10 years. Monthly payments of at
least $40 are required. Deferment of repayment is permitted for certain
kinds of federal service, and cancellation of loans is permitted for
certain public-service positions.
All first-time Federal
Perkins Loan borrowers are required to attend an entrance interview to
learn about their rights and responsibilities regarding the loan. They
must also attend an exit interview before graduation or upon withdrawal
from school.
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, Office of Student Loans, Division
of Student Accounting, Billing, Cashiering and Collections, 65 Davidson
Road, Piscataway, NJ 08854-8094.
William D. Ford Federal
Direct Student Loan.
Federal Direct Student Loans (Direct Loans) are
available to students 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 awarded to
students will be credited directly to their accounts. Because Rutgers
has chosen to participate in direct lending, the university 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 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 set by the U.S. Department of Education, provide
evidence of U.S. citizenship or be an eligible noncitizen, be enrolled
at least half time per term and be making satisfactory academic
progress, have a valid social security number, sign a statement of
educational purpose, not be in default on prior loans or owe refunds to
a federal grant program, and register with the U.S. Selective Service,
if required.
In addition to these requirements, all first-time
Federal Direct Loan borrowers must attend an entrance interview in
order to learn about 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 variable interest rate is adjusted each year. Effective
July 1, 2003, the rate for the Federal Direct Loan was 3.42 percent.
Additionally, borrowers are charged an origination fee of 1.5 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 and all interest charges must be paid by the student. The interest
rate is the same as that of the Federal Direct Subsidized Loan.
Students may borrow as much as $18,500 per year, less any amount from
the subsidized loan program. The total debt permitted for all
subsidized and unsubsidized Direct Loans is $138,500.
NJCLASS
Loan.
The NJCLASS, initiated by the state of New Jersey and
administered by the New Jersey Higher Education Student Assistance
Authority (NJHEAA), is a 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 application.
Students must also complete the financial aid application procedure to
determine the student`s eligibility for Federal Direct Student Loans
and must accept loan funds from that program before applying for
NJCLASS funds. The interest rate may be either fixed or variable. For
more information about NJCLASS, call the NJHEAA Financial Aid Hotline
at 800/792-8670.
Emergency Loan.
Students experiencing a
financial emergency may apply for a university loan of as much as $500.
A simple interest rate of 3 percent is charged. Loans are awarded as
long as funds are available. The applicant must demonstrate an
emergency need and indicate a source of repayment. Contact the Office
of Financial Aid for additional information.
Note: Quoted
interest rates may change at any time. Subsequent program regulations
may change the terms of eligibility and repayment.
