Federal Direct Student Loan Program

Accepted matriculated graduate and undergraduate students enrolled on at least a half-time basis (6 credits per term) are eligible to apply for loans under this program. The student is eligible to borrow up to the maximum annual loan limit or cost of education less their family contribution and other financial aid, whichever is less. Applicants with financial need are eligible for a subsidized student loan, while those without financial need are eligible to apply for an unsubsidized loan. The Federal government pays the interest on subsidized loans, while borrowers are responsible for interest payments under the unsubsidized loan program while in attendance.

These funds are borrowed directly from the Federal government, not through private lenders. The interest rate of unsubsidized Stafford loans is fixed at 6.8%, while subsidized is fixed at 5.6% as of July 1st, 2009.

Applicants are required to file the Free Application for Federal Student Aid (FAFSA) and to submit the results of that application (called Student Aid Reports) to Dowling College to have their eligibility for a loan determined. Dependent undergraduate students can borrow up to $5,500 for their freshman year, $6,500 for their sophomore year, and up to $7,500 for junior and senior years. Independent are eligible for an additional $4000 in unsubsidized loans.

Borrowers are charged a 1.5% origination fee, of which the government offers an instant, up-front rebate of 1.0%. Loans are disbursed in multiple installments, generally one per term.

Repayment of all Federal loans must begin after the borrower graduates, leaves school, or drops below half-time status. (Student may defer repayment for a six month grace period after repayment status entered.) However, borrowers of unsubsidized student loans are responsible for interest payments while in attendance, or said interest will be added to the principal. The Federal government pays the interest on the subsidized student loans until the borrower graduates, leaves school, or drops below half-time status. There are provisions for teacher loan forgiveness if borrowers meet specific teaching requirements. Borrowers may qualify for loan forgiveness of up to $17,500 if employed for five consecutive years as a "highly qualified secondary school teacher of math, science, or elementary/secondary school special education teacher."

Federal Parent Loans

Parents of dependent undergraduate students who are enrolled on at least a halftime basis may be eligible for a Federal Parent Loan. These loans are based on creditworthiness. Parents may borrow up to the cost of education, less any financial aid that has been or will be awarded.

Dowling College now has a Preferred Lender List for our Parent PLUS/Graduate PLUS loans. Since the terms of these loans are set by federal regulations, the primary concern in creating this list is ease of process, for the student, the parents, and Dowling College. The lenders listed below all allow the borrower to go to www.hesc.com, complete the e-MPN and a credit check, and the school will be notified within 48 hours. You are not required to borrow from any of the lenders listed below and there is no penalty for selecting a different lender. If you are choosing a lender not on this list, please contact the lender and the school directly to ensure a smooth application process.

(The lenders are listed in alphabetical order)

Lender Code		Lender Name
808851		Access Group
831495		Bank of America
803000		Chase JP Morgan
826878		Citibank
833610		College Bound Loans
831453		EdAmerica
811025		Key Bank
829076		Nellie Mae
833669		Nelnet
810240		RBS Citizens
802218		Sallie Mae
830005		Wachovia

Federal Perkins Loan

This federal loan program permits a student to borrow up to a total of $9,000 for undergraduate study and up to a total of $18,000 for undergraduate combined, provided he or she is enrolled as a matriculated student on at least a half-time basis, maintains satisfactory progress in his or her courses of study, and demonstrates a high level of financial need.

The current interest rate is 5%. Repayment begins nine months after the student either (1) graduates or (2) ceases at least half-time study or (3) completes a deferment period not in excess of three years for study, service, or disability. Deferments include (1) volunteer service in a private, nonprofit VISTA or Peace Corps type organization; (2) service as an officer in the U.S. Public Health Service Commissioned Corps; (3) temporary total disability; and (4) service in any internship preceding a professional practice. Repayment may extend over a period of ten years, but may be further extended up to ten additional years by the institution for low-income individuals. In addition, cancellation of the loan is available to students who enter specific types of teaching service.

Application. Students must complete a Free Application for Federal Student Aid. Deadline for all students is April 30th to receive consideration for the following academic year. This program is awarded on a first come, first served basis. Students whose applications are received after the deadline date will be considered based on funding availability.