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 is fixed at 6.8%.

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. Undergraduate students can borrow up to $2,625 for their freshman year, $3,500 for their sophomore year, and up to $5,500 for junior and senior years.

Borrowers are charged a 3% origination fee, which is paid to the Federal government. government. The government does offer an up-front 1.5% rebate on this fee Loans are disbursed in multiple installments, generally one per term.

Repayment of the subsidized loan begins 6 months after the borrower graduates, leaves school, or drops to below a 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.

The interest rate for the Direct Parent Loan is a fixed 7.9%. The interest rate for Parent Loans through private lenders are fixed at 8.5%, but lenders often offer rate reductions.

APPLICATION: The FAFSA must be filed for this loan. Parents can choose from one of these lenders:

1. Direct Parent Loan (funds borrowed directly from the federal government). Parents should complete a Parent Plus Application which can be found in the Financial Aid office or at our website http://www.dowling.edu/mydowling/forms/stu-index.html
2. Salliie Mae Parent Loan - www.parentanswer.com
3. Citibank Parent Loan - www.studentloan.com/schools/dowling

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.

Other Educational Loan Programs

Some families find the need to participate in other loan programs, commonly called alternative loans. These loans are based on creditworthiness, rather than financial need. While families are encouraged to talk with their local lender about options, there are a variety of alternative loans that Dowling students and their families have found useful. Some of these, with web addresses, are listed below.

CitiAssist, from Citibank, www.studentloan.com/schools/dowling
Signature Loan, from Sallie Mae, www.salliemae.com