Loans

Stafford Loan

Stafford Loans are available to students at SEBC and can be either subsidized or unsubsidized.

A subsidized Stafford Loan is awarded on the basis of financial need.  A student is not charged interest on this loan while he or she is enrolled in school at least half time or during authorized periods of deferment.  The federal government “subsidizes” the interest during these periods.

An unsubsidized loan is not awarded on the basis of financial need; therefore, the student will be charged interest on the loan from the time it is disbursed until the time it is paid in full.  If you allow the interest to accumulate, it will be capitalized – that is, the interest will be added to the principal amount of your loan and additional interest will be based upon the higher amount.  Capitalization will increase the amount you have to repay.  SEBC suggests that you pay the interest prior to capitalization.

For Stafford Loans beginning July 1, 2007, the interest rate is fixed at 6.8%.  Lenders are required by law to notify students of changes in the interest rate.  Repayment of the loan usually begins six months after the student is no longer enrolled at least half time in school.  If needed, students may defer repayment of their loans for a time.

Eligibility for Stafford Loans is determined upon completion of the FAFSA.  Stafford Loans funds are credited to the student’s account once the funds are delivered to the school.

Federal Parent (PLUS) Loan

The Federal Parent (PLUS) Loan is an educational loan for parents of dependent undergraduate students enrolled at least half time.  Financial need is not a requirement; however, a credit check is required.  Loan eligibility is based on the Cost of Attendance minus other aid received.

Federal Parent (PLUS) Loan interest rates are variable.  For the year beginning July 2, 2007, the interest rate for the Federal Parent (PLUS) Loan is fixed at 8.5%.  The first payment is due 60 days after the loan is disbursed.

Federal Parent (PLUS) Loan funds are credited to the student’s account once the funds are delivered electronically to the school.

All students requesting loans must complete the FAFSA, even if the only aid being requested is the Federal Parent (PLUS) Loan.

If the parent is denied the PLUS Loan and elects not to use an endorser, the student may be eligible for additional unsubsidized Federal Stafford Loan funds, not to exceed the Cost of Attendance and their eligibility.

Please contact the Office of Financial Aid if you are interested in the Federal Parent (PLUS) Loan.

How to Request a Stafford Loan

In order to request a Stafford Loan, you must complete the Stafford Loan Request Form and return the completed form to the Office of Financial Aid.  Without the completion of this form, your Stafford Loan will not be initiated.  Please refer to your a Award Letter when completing this form.

2010-2011 Federal Stafford Loan Request Form

Authorization to Release Title IV Funds (Purple Form)

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