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Student Loans

Student loans, unlike grants and work-study, are borrowed money that must be repaid with interest, just like car loans and mortgages. You cannot have these loans cancelled because you didn't like the education you received, didn't get the job in your field of study, or because you're having financial difficulty. Loans are legal obligations, so before you take out a student loan, think about the amount you will have to repay over the years.

 

Sacred Heart Major Seminary participates in the William D. Ford Loan Program. The Direct Loan Program provides students with the means to borrow funds for college without a cosigner or credit check. Students who apply for federal financial aid at Sacred Heart by submitting a FAFSA are in a program where federal funds can be used are automatically considered for low-interest direct loans. These loans are awarded to eligible students as a part of the student's financial aid package and are included on the student's financial aid award notice. Families who are not eligible for these loans and/or who need additional resources to cover their student's college costs may want to consider applying separately for a supplemental loan through the federal government or a private lender.

 

For Stafford loan eligibility, students must be enrolled at least half-time in a degree program. Undergraduate half-time: minimum of 6 credits. Graduate half-time: minimum of 4 credits. Contact the financial aid office for more information concerning loan eligibility.

 

Types of Loans
 

Direct Subsidized (Stafford) Loan.  Subsidized Federal Stafford Loans are available to students who demonstrate financial need. The Federal government pays the interest on these loans until six months after the student graduates or stops attending at least half-time. For Undergraduate students there is no interest charged while you are enrolled at least half-time (6 credits or more). Effective in the 2012-2013 academic year, Subsidized Federal Loans are no longer available to graduate students.
 

Direct Unsubsidized (Stafford) Loan.  Unsubsidized Federal Stafford Loans are available to students who are not eligible for subsidized loans and to independent students who wish to borrow more than their maximum subsidized amount. For undergraduate and graduate students, the student is responsible for paying all of the interest. Interest begins to accrue while you are in school. You must be enrolled at least half-time in your program to be eligible.
 

Parent Plus Loan.  Plus loans are loans parents can obtain to help pay for the cost of education for their dependent undergraduate children. These loans include credit worthiness, based on credit rating, and no automatic in-school statuses.
 

Plus loans are now available to graduate students. Graduate Plus loan borrowers must file a FAFSA. The eligibility criteria are the same as those for parents, including credit checks and no automatic in-school statuses. Graduate student borrowers are eligible for in-school deferment.
 

Alternative Loan.  Parent applies on their own, based on credit rating. Students who are not eligible for any of the federal loans listed above, and or who need additional funds to cover their college costs, may want to consider applying for loans through a lending agency such as a credit union or bank.

 

The loan process

 

Upon graduation, dropping to less than half-time or leaving school, the student must complete the loan exit process, through an exit interview.

 

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