Federal Perkins Loan
The Federal Perkins Loan program provides students with long-term, low-interest loans for educational expenses. The amount which can be made available to an applicant is based on the student’s computed financial need and available funding.
Changes in Federal law now allow you to borrow up to $5,500 during one academic year, but no more than $27,500 during the period that you are a full-time student. No interest is charged while you maintain at least half-time status.
Repayment of the loan with interest at 5% per annum on the unpaid balance begins nine months (based on the conditions of your promissory note) after you graduate or terminate your student status or become less than a half-time student. Repayment must be completed within ten years after the interest begins to accrue. The interest paid towards your Perkins Loan may be deductible from the taxpayer's income.
Federal law requires that every student who has been awarded a Federal Perkins Loan through Philadelphia University must have the opportunity for an entrance interview. Entrance interviews for Perkins Loans can be completed at www.mappingyourfuture.org.
Federal law requires that every student who has obtained a Federal Perkins Loan through Philadelphia University must have the opportunity for an exit interview before leaving the University. During this brief meeting, a representative of the financial aid office will explain provisions for loan repayment and privileges for deferment of payment to the student borrower. The Financial Aid Office will contact the borrowers prior to their anticipated graduation dates to remind them of the necessity for an exit interview. However, each student is responsible for scheduling the interview even if he or she withdraws from the University at any time prior to graduation. Perkins exit interviews can be completed at www.mappingyourfuture.org
Federal Direct Stafford Loan
Loans are available to students enrolled for at least six credit hours per semester. You may borrow up to $3,500 per academic year for the freshman year, $4,500 for the sophomore year and $5,500 per academic year for the junior and senior years. The total amount outstanding that you may borrow for undergraduate study is $23,000. The annual interest beginning July 1, 2014 is 4.66%. The government will pay this interest until six months after you have terminated your studies, or dropped below half-time status, at which time you must begin repayment of the principal and interest. The interest paid towards your Stafford Loan may be deductible from the taxpayer's income.
There may be a 1.073% loan origination fee deducted from the face value of the loan.
Under current regulations, all applicants must pass a “needs test” to qualify for this loan. A Free Application for Federal Student Aid must be filed prior to certification of a loan application by the school. You must maintain satisfactory progress to renew your loan.
Federal law requires when you borrow through the Federal Stafford Loan program for the first time, you must complete an entrance interview. In addition, when you graduate, withdraw, or enroll less than half-time, you must complete an exit interview. The entrance counseling sessions can be done on-line at https://studentloans.gov/myDirectLoan/index.action.
The exit counseling session can be done at http://www.nslds.ed.gov/nslds_SA/
Unsubsidized Federal Stafford Loan
The Unsubsidized Federal Stafford Loan provides students not qualifying for all or part of the Federal Stafford Loan due to need restrictions the opportunity to borrow a low interest loan. The annual limits a student can borrow are identical to the Federal Stafford Loan program.
Dependent undergraduate students will be eligible for $2000 unsubsidized loan in addition to the amounts listed above.
The interest rate for the Unsubsidized Stafford Loan is 4.66%. The distinguishing feature of the Unsubsidized Federal Stafford Loan is that the interest must be paid by the student, on a quarterly basis, while the student is enrolled in school. The interest paid towards your Unsubsidized Stafford Loan may be deductible from the taxpayer's income. Principal payments start six months after the student leaves school or drops below half-time status. Application procedures are identical to those for a Federal Stafford Loan.
Federal Plus Loans
Parents of dependent undergraduates may borrow up to the student’s cost of attendance minus any estimated financial aid. The annual interest rate is 7.21%. The parent must meet certain credit criteria in order to be eligible. Repayment of principal and interest begins 60 days after the loan is disbursed. Some lenders allow parents to delay payments under a forbearance option. The interest paid towards your PLUS loan may be deductible from the taxpayers income.
Loan fees of 4.292% will be deducted from the face value of the loan.
The U.S. Department of Education's National Student Loan Data System (NSLDS) provides information on your federal loans including loan types, disbursed amounts, outstanding principal and interest, and the total amount of all your loans. To access NSLDS, go to www.nslds.ed.gov.
For more information click on the following topic:
- Repayment plans and Calculators
- Public Service Loan Forgiveness
- Postponing Repayment
- Loan Consolidation
An alternative loan can help to pay the student’s remaining expenses after financial aid has been applied to the bill. The alternative loans are credit-based and offer flexible repayment options. Alternative loans are to be used to supplement other forms of financial aid. Alternative loans are student loans, with the student listed as the borrower. Most alternative loans will require that the student also have a credit worthy co-signer in order to be eligible. Interest rates are variable and are set by the individual lender.
The lenders on the attached chart are those that Philadelphia University students borrowed with most often in the past three years. This chart was developed purely as a reference tool for our students. You are free to select any alternative lender of your choice.
Office of Financial Aid
Our federal school code is 003354