20-21 Bacone College Academic Catalog

7. OFFICE OF FINANCIAL AID

7.10. Types of Loans offered at Bacone College

Effective July 1, 2010 the William D Ford Federal Direct Loan program became the sole provider of Federal Direct Stafford and PLUS loans at Bacone College. Direct Loans are low-interest loans for students and parents to help pay for the cost of a student's education after high school. The lender is the U.S. Department of Education (hereinafter will be called "the Lender") rather than a bank or other financial institution.

Students and/or parents borrow directly from the federal government and have a single contact-the Direct Loan Servicing Center-for everything related to the repayment of your loans, even if you receive Direct Loans at different schools.

Students have online access to your Direct Loan account information 24 hours a day, 7 days a week at Direct Loans on the web at www.dl.ed.gov.  Students can choose from several repayment plans that are designed to meet the needs of almost any borrower, and you can switch repayment plans if your needs change.

If you have previously borrowed a federal Stafford, PLUS, or Graduate PLUS loan through a private lender in the FFELP loan program (Wells Fargo, Bank of America, Citibank, Sallie Mae, Discover, etc.,) they will no longer be offering loans and you will need to sign a new Master Promissory Note (MPN) with the Direct Loan program.

The Federal Direct Subsidized Stafford Loan is federally-sponsored “need-based” loan. The federal government pays the interest while you are enrolled at least half time, during the "grace period", and authorized periods of deferment. Interest begins to accrue when you enter repayment.

The Federal Direct Unsubsidized Stafford Loan is a federally-sponsored loan which has no interest subsidy. The interest accrues from the date of disbursement. You may pay the interest while you are enrolled or defer the interest. Accrued interest will capitalize once when you enter repayment. Students are encouraged to make the interest payments while in school to help decrease the total costs of the loan.

Go to the Direct Loan website at https://studentloans.gov for more information including completing the Master Promissory Note (MPN) and signing using your FAFSA PIN.
New borrowers must electronically sign the Master Promissory Note before we will certify your loan(s) with the lender.

Complete the ENTRANCE COUNSELING at https://studentloans.gov.  All new student loan borrowers must complete Entrance Counseling before Stafford Loan funds will be certified for disbursement.

Fees, Interest and Repayment:

UNDERGRADUATE STUDENTS: As of July 1, 2018, the interest rate on a new Subsidized Federal Stafford Loan is a fixed 5.05%.

For ANY students who borrow an Unsubsidized Federal Stafford Loan, the interest rate is a fixed 5.05%.

You may pay up to 1.0% in loan fees.

For loans disbursed prior to July 1, 2006, the interest rate continues to be variable based on the 91-day T-bill.

Repayment begins six months from the date of graduation, withdrawal, or enrollment less than half time. There is no pre-payment penalty.

Important Information:

Academic year loans are disbursed in equal increments, one each semester or term.

You are required to maintain Satisfactory Academic Progress (SAP) in order to receive the Federal Stafford Loan. Undergraduate students must maintain a cumulative GPA 2.0 or better; Furthermore, you must earn the credits for your enrollment/funding status. This is a brief synopsis only; you are required to read and understand the entire Bacone College SAP policy.

Direct Loan Servicing

This is your site for managing your account, view your account balances and payment history, enroll in electronic services, make online payments and change your billing options. Also 1098-E tax information and loan consolidation.

Manage My Direct Loan

This site is your source for information from the U.S. Department of Education about how to manage your student loans. It is also the site to sign the Master Promissory Note and Complete Entrance Counseling. Information on repayment plans and calculators, loan discharge, public service and teacher loan forgiveness programs are available.

National Student Loan Database System (NSLDS)

This site is an excellent resource to help you track the principal and outstanding aggregate limit on your entire FFELP and Direct Stafford Loan borrowing history.

Refund

This site offers financial literacy information, creating a budget using EdWise, information on repayment and loan forgiveness programs and your right and responsibilities as a loan borrower.

Deferments

The Office of Financial Aid is required to ensure student loan lenders are updated several times a year with current enrollment status. If you borrowed a loan at another school and now would like your previous loan deferred, please contact your previous lender. If they request Bacone College to complete a Deferment Form, you may submit the form to the Registrar’s Office that will verify your current enrollment status at Bacone College. Deferment forms can be obtained from your lender, and may be available for download from their website.

Repayment

Once you graduate or drop below half-time, you have a one-time six month "grace period" before repayment begins. If you are not able to make the scheduled payments, contact your lender for a deferment, forbearance, or to discuss other repayment plans.

Achieving Your Financial Goals - Paying It Back:

When borrowing student loans, it is the borrower's responsibility to ensure the loan is paid back in accordance with the terms detailed in the Master Promissory Note. Bacone College has partnered with lenders and guarantors to develop a comprehensive default prevention plan. If you are delinquent in repayment, the College, the lender, and the guarantor will contact you to reestablish satisfactory payment arrangements.

Defaulting on a federal student loan is very serious and could have costly consequences such as:

  • Negative Credit History
  • Wage Garnishment
  • Higher Interest Rates on Future Purchases
  • Denied Consumer Loans and Loss of Eligibility of Future Financial Aid
  • Stress
  • Collection costs
  • Offset paid out of federal tax returns, state tax returns, lottery winnings, and other federal and state funds
  • Academic Year Borrowing Limits by Class Standing

Dependent Students

Class Standing

Cumulative Credits Earned

Base Stafford Loan Eligibility
(Subsidized and Unsubsidized)

Additional Unsubsidized
Stafford Loan Eligibility

Freshman

0-30 credits

$3500

$2000

Sophomore

31-60 credits

$4500

$2000

Junior

61-90 credits

$5500

$2000

Senior or 2nd BA

91+ credits

$5500

$2000

 

Independent Students and Dependent Students Whose Parents Are PLUS Denied

Class Standing

Cumulative Credits Earned

Base Stafford Loan Eligibility
(Subsidized and Unsubsidized)

Additional Unsubsidized
Stafford Loan Eligibility

Freshman

0-30 credits

$3500

$6000

Sophomore

31-60 credits

$4500

$6000

Junior

61-90 credits

$5500

$7000

Senior or 2nd BA

91+ credits

$5500

$7000

 

Aggregate Lifetime Limits

Category

Maximum Stafford Loan Eligibility

Dependent Undergraduate

$31,000 (no more than $23,000 of which may be subsidized)

Independent Undergraduate

$57,500 (no more than $23,000 of which may be subsidized)


Federal Direct Parent Loans: The Parent Loan is an unsubsidized loan; interest begins to accrue when the student (the parent) receives the first loan disbursement. The Federal Direct Parent (PLUS) Loan interest rate, which is set by the federal government, is fixed at 7.6% for loans disbursed after July 1, 2018. The federal government charges Parent Loan borrowers a 4.29% origination fee; however, 1.5% of the fee is rebated up front when the loan is disbursed. For example, if a parent borrows $5,000, the student will receive $4,875 ($5,000 X .025 = $125). When loan repayment begins, parents must make the first 12 loan payments on time or the amount rebated will be charged back to the total loan amount.

Private Collegiate Loans or Alternative Loans: This type of loan is available to students who have utilized all their loan eligibility for the subsidized and unsubsidized loans. It also provides a dependent student with an alternative if the Parent Plus Loan has been denied. There are several alternative loans that are available for students, and each lender dictates its own rules and regulations. For example, the Wells Fargo Collegiate Loan Program is available for U.S citizens, permanent residents and international students who are temporary residents. The loan is based on positive credit histories, and a co-signer is required. Origination fees are determined by the private loan lender(s), and the annual loan amount may vary between $1,000 and $25,000 but cannot exceed the cost of education. The interest rate is variable, is determined by the lender, and begins upon disbursement. The financial aid office certifies the loan amount a student can receive.

Assistance From Other Sources: Other sources of state and federal financial assistance are available to qualified students including Vocational Rehabilitation, Veterans education benefits, Workforce Oklahoma, and assistance from the Department of Human Services. Students are encouraged to contact the appropriate government office in their community for more information about these programs.

Helpful Websites for Scholarship Search

Below is a list of websites that can be used for scholarship search:

www.wiredscholarship.com
www.fastweb.com
www.smexpress.com
www.collegenet.com
www.spiritfund.com