header

 

Educational Loans

Federal Direct Stafford Loan
(for students only)


WHAT IS A FEDERAL DIRECT STAFFORD LOAN?
A Federal Direct Stafford Loan is a low-interest loan available to students who are enrolled at least half-time, are pursuing a degree, and meet other basic requirements. These loans do not require credit approval and offer a variety of deferment and repayment options. They are financed directly by the federal government so you do not need to choose a lender. There are two types of Federal Direct Stafford Loans: subsidized and unsubsidized.

A subsidized loan is awarded on the basis of financial need. The federal government pays (i.e. subsidizes) the interest on this loan while you are enrolled at least half-time and during periods of deferment.

An unsubsidized loan is awarded regardless of need. You are charged interest from the time the loan is disbursed and you may either make or defer interest payments while you are in school and during periods of deferment. If you defer your interest payments, the accumulated interest will be capitalized, or added, to the principal of your loan when you enter repayment. All future interest charges are based on the new, higher principal loan amount. It is less expensive over the long run if you pay the interest while you're in school.

Independent student and some dependent students are able to borrow additional, unsubsidized funds through the Federal Direct Stafford Loan program. Independent students are automatically considered for the additional loan funds. Dependent students whose parents apply for, but are denied, a Federal Direct PLUS Loan (see the PLUS Loan section below) will also be considered for these additional loan funds.

Interest Rates

Beginning July 1, 2008, the College Cost Reduction and Access Act of 2007 reduced the interest rate on subsidized Stafford loans for undergraduate students only. These reductions are not available to graduate students and do not pertain to unsubsidized Stafford loans. The interest rates are illustrated in the following table.


Federal Direct Stafford Loan Interest Rates


Year 		Undergraduate Subsidized Graduate Subsidized and
Undergraduate/Graduate Unsubsidized
2007-2008 6.8% 6.8%
2008-2009 6.0% 6.8%
2009-2010 5.6% 6.8%
2010-2011 4.5% 6.8%
2011-2012 3.4% 6.8%
2012-2013 6.8% 6.8%


Maximum Federal Direct Stafford Loan amounts

The U.S. Department of Education sets borrowing limits that vary by your year in school and FAFSA dependency status (see the chart below). If you qualify for a subsidized loan that is less than the annual subsidized loan limit, you may receive an unsubsidized loan to cover the difference between the annual limit and the subsidized loan amount.

The chart below lists the maximum loan amounts for Federal Direct Stafford Loans that dependent students may borrow each year.

Maximum Annual Loan Amounts for Dependent Students

Earned Credits Maximum subsidized Maximum combined total
(subsidized + unsubsidized)
Freshman
0 to 29.9 credits 		$3,500 $5,500
Sophomore
30 to 59.9 credits 		$4,500 $6,500
Junior/Senior
60 or more credits 		$5,500 $7,500

Please Note: (1) Dependent students whose parents are denied a Parent PLUS Loan may be eligible for additional unsubsidized Stafford Loan; (2) Associate degree students cannot exceed sophomore loan amounts regardless of total number of earned credits.



The chart below lists the maximum loan amounts for Federal Direct Stafford Loans that independent students, and dependent students whose parents are denied a Parent PLUS Loan, may borrow each year.

Maximum Loan Amounts for Independent Students
(and dependent students whose parents are denied a PLUS Loan)

Earned Credits Maximum subsidized Maximum combined total
(subsidized + unsubsidized)
Freshman
0 to 29.9 credits 		$3,500 $9,500
Sophomore
30 to 59.9 credits 		$4,500 $10,500
Junior/Senior
60 or more credits 		$5,500 $12,500
Graduate Student $       0 $20,500
(all unsubsidized)


Please Note: (1) A ssociate degree students cannot exceed sophomore loan amounts regardless of total number of earned credits.


Aggregate Federal Direct Stafford Loan Limits

The US Department of Education maintains aggregate limits on your total outstanding debt. For the Stafford Loan, those limits are as follows:

  • $31,000 (no more than $23,000 of which can be subsidized) for dependent undergraduates
  • $57,500 (no more than $23,000 of which can be subsidized) for independent undergraduates
  • $138,500 (no more than $65,500 of which can be subsidized) for graduate students ?

HOW TO RECEIVE A FEDERAL DIRECT STAFFORD LOAN
Four Steps

STEP 1) FAFSA
File a FAFSA . List LHU (federal school code 003323) as your school.

STEP 2) Additional Information
Promptly submit any additional information requested by the LHU Student Financial Services Office. Not all students receive requests for additional information.

STEP 3) Master Promissory Note (MPN)
New borrowers must complete and sign a Direct Loan Master Promissory Note (MPN).

You must complete this process online by signing in at https://studentloans.gov . Be sure to choose the Lock Haven University as your school. You will be required to use your U.S. Department of Education issued PIN to sign in and to complete an electronic MPN. Please visit the PIN website if you are a new user or have forgotten your PIN.

Please Note: Once completed, the MPN will remain valid for 10 years unless you file for bankruptcy. If you complete the MPN and then decide not to borrow for 12 months, you will be required to complete a new MPN.

STEP 4) Entrance Counseling
New borrowers must complete a one-time loan entrance counseling session.

The U.S. Department of Education requires first-time borrowers at Lock Haven to complete a loan entrance counseling session. This session includes information on loan repayment obligations and the consequences of loan default. To complete the entrance counseling session, sign in at https://studentloans.gov . Be sure to choose the Lock Haven University as your school. You must use your Federal Student Aid PIN to sign in and to complete an electronic MPN. Please visit the PIN website if you are a new user or have forgotten your PIN.

HOW TO TELL IF YOU HAVE COMPLETED A DIRECT STAFFORD LOAN MPN
Sign in to the https://studentloans.gov website and click on the "Completed MPNS" link under "My Loan Documents".

HOW TO TELL IF YOU HAVE COMPLETED LOAN ENTRANCE COUNSELING
Sign in to the https://studentloans.gov website and click on the "View Previously Completed Counseling" link in the "Counseling" section.

HOW TO CANCEL A FEDERAL DIRECT STAFFORD LOAN
You have the right to reduce or cancel your Federal Direct Stafford Loan. You may do so by: (1) making a notation on your Financial Aid Award Letter and returning it to the Student Financial Services Office; OR (2) completing and returning a Loan Change/Cancellation Form ; OR (3) completing and returning the notification you receive from LHU when loan funds are credited to your student account.


Federal Direct Parent PLUS Loan
(for parents of dependent students only)


WHAT IS A FEDERAL DIRECT PARENT PLUS LOAN?

The Federal Direct Parent PLUS loan is a federal loan program for parent(s) who wish to access additional resources beyond what a dependent student is eligible to receive. The parent borrower, not the student, is responsible for repayment of this loan. This loan may cover up to the total Cost of Attendance (COA) as defined by LHU, minus the student's other financial aid, including student loans.

A credit check is required to determine eligibility for this loan program. If the parent borrower is denied the Federal Direct PLUS Loan AND the parent has opted NOT to appeal the adverse credit decision OR seek an endorser, LHU will automatically award the student additional unsubsidized Federal Stafford Loan funds. See Stafford Loan section for more information.

The interest rate for Direct PLUS is fixed at 7.9%.

Parents who borrow PLUS Loans pay a loan fee of 4 percent of the loan amount, deducted proportionately each time a loan disbursement is made. The  fee is deducted from the loan before loan funds are disbursed to LHU. The fee helps the federal government reduce the overall cost of administering this federal loan program.

Repayment of the PLUS loan begins 60 days after the loan is fully disbursed for an academic year.

Parents may be charged collection costs and late fees if they do not make their loan payments on time.

An optional in-school deferment will delay payments on the PLUS loan until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least half-time. To request an in-school deferment, AFTER the initial PLUS loan disbursement, please contact Direct Loan Borrower Services at 1-800-848-0979. Deferment must be requested on an annual basis, and may be requested 14 days after the loan has been disbursed to the student's account. Interest will continue to accrue on this loan during the deferment period. To limit the cost of borrowing, it is highly recommended that parents make interest payments during this deferment period if possible.

Please Note: Since federal education loans, like PLUS Loans, are less expensive than and offer better terms than private student loans, it is important to consider all federal loan options before resorting to private alternative loans.

HOW TO RECEIVE A FEDERAL DIRECT PARENT PLUS LOAN
Five Steps

STEP 1) FAFSA
The student must file a FAFSA and list LHU (federal school code 003323) as his or her school.

STEP 2) Additional Information
Promptly submit any additional information requested by the LHU Student Financial Services Office. Not all students receive requests for additional information.

STEP 3) Request PLUS Loan
Please Note: Parent borrowers cannot complete this step for Fall 2012 before April 15, 2012.
To request a Parent PLUS Loan, the parent borrower must sign in at https://studentloans.gov. The parent will use his or her Federal Student Aid PIN to sign in. Please visit the PIN website if you are a new user or have forgotten your PIN.

Important. Please Read Carefully:

  • Make sure to specify the desired loan period (e.g. 08/2012-05/2013; 01/2013-05/2013; 05/2013-07/2013) when you complete the PLUS Loan request.
  • If the student will be enrolled both fall and spring semester, we recommend that the loan be requested for fall/spring (i.e. for loan period 08/2012-05/2013), rather than for a single term.
  • A new PLUS Loan request must be completed at https://studentloans.gov to (1) request a new PLUS Loan, (2) increase an existing PLUS Loan, OR (3) decrease an existing PLUS Loan.
  • Summer is a separate loan period and requires a new PLUS Loan request. To request a PLUS Loan for summer 2012, do so under the 2011-2012 award year at https://studentloans.gov .

STEP 4) Master Promissory Note (MPN)
New parent borrowers must complete and sign a Direct Loan Master Promissory Note (MPN). To complete the Parent PLUS MPN, the parent borrower must sign in at https://studentloans.gov . The parent will use his or her Federal Student Aid PIN to sign in and to complete the electronic MPN. Please visit the PIN website if you are a new user or have forgotten your PIN. Be sure to select Lock Haven University as the school.

Please Note: Once completed, the MPN will remain valid for 10 years unless you file for bankruptcy or secure an endorser for the loan. If you complete the MPN and then decide not to borrow for 12 months, you will be required to complete a new MPN.

HOW TO TELL IF YOU HAVE COMPLETED A DIRECT PARENT PLUS LOAN MPN
Sign in to the https://studentloans.gov website and click on the "Completed MPNS" link under "My Loan Documents".

HOW TO CANCEL A FEDERAL DIRECT PARENT PLUS Loan
The parent has the right to reduce or cancel his or her Federal Direct Parent PLUS Loan. The parent may do so by: (1) completing and returning a Loan Change/Cancellation Form ; OR (2) completing and returning the notification he or she receives from LHU when loan funds are credited to the student's account.


Federal Direct Graduate PLUS Loan
(for graduate students only)


WHAT IS A FEDERAL DIRECT GRADUATE PLUS LOAN?

The Federal Direct Graduate PLUS loan is a federal loan program for graduate students. This loan may cover up to the total Cost of Attendance (COA) as defined by LHU, minus the student's other financial aid, including student loans.

A credit check is required to determine eligibility for this loan program.

The interest rate for Direct PLUS is fixed at 7.9%.

Students who borrow PLUS Loans pay a loan fee of 4 percent of the loan amount, deducted proportionately each time a loan disbursement is made. The fee is deducted from the loan before loan funds are disbursed to LHU. The fee helps the federal government reduce the overall cost of administering this federal loan program.

Repayment of the PLUS loan begins 60 days after the loan is fully disbursed for an academic year.

Borrowers may be charged collection costs and late fees if they do not make their loan payments on time.

An optional in-school deferment will delay payments on the PLUS loan until six months after the student ceases to be enrolled at least half-time. To request an in-school deferment, AFTER the initial PLUS loan disbursement, please contact Direct Loan Borrower Services at 1-800-848-0979. Deferment must be requested on an annual basis, and may be requested 14 days after the loan has been disbursed to the student's account. Interest will continue to accrue on this loan during the deferment period . To limit the cost of borrowing, it is highly recommended that students make interest payments during this deferment period if possible.

Please Note: Since federal education loans, like PLUS Loans, are less expensive than and offer better terms than private student loans, it is important to consider all federal loan options before resorting to private alternative loans.

HOW TO RECEIVE A FEDERAL DIRECT GRADUATE PLUS LOAN
Six Steps

STEP 1) FAFSA
The student must file a FAFSA and list LHU (federal school code 003323) as his or her school.

STEP 2) Additional Information
Promptly submit any additional information requested by the LHU Student Financial Services Office. Not all students receive requests for additional information.

STEP 3) Request PLUS Loan
Please Note: You cannot complete this step for Fall 2011 before
April 25, 2011.
To request a Graduate PLUS Loan, you must sign in at https://studentloans.gov . You will use your Federal Student Aid PIN to sign in. Please visit the PIN website if you are a new user or have forgotten your PIN.

Important. Please Note:

  • Make sure to specify the desired loan period (e.g. 08/2012-05/2013; 01/2013-05/2013; 05/2013-07/20123 when you complete the PLUS Loan request.
  • If the student will be enrolled both fall and spring semester, we recommend that the loan be requested for fall/spring (i.e. for loan period 08/2012-05/2013), rather than for a single term.
  • A new PLUS Loan request must be completed at https://studentloans.gov to (1) request a new PLUS Loan, (2) increase an existing PLUS Loan, OR (3) decrease an existing PLUS Loan.
  • Summer is a separate loan period and requires a new PLUS Loan request. To request a PLUS Loan for summer 2012, do so under the 2011-2012 award year at https://studentloans.gov .

STEP 4) Master Promissory Note (MPN)
New Graduate PLUS Loan borrowers must complete and sign a Direct Loan Master Promissory Note (MPN).

To complete the Graduate PLUS MPN, sign in at https://studentloans.gov . You must use your Federal Student Aid PIN to sign in and to complete the electronic MPN. Please visit the PIN website if you are a new user or have forgotten your PIN. Be sure to select Lock Haven University as the school.

Please Note: Once completed, the MPN will remain valid for 10 years unless you file for bankruptcy or secure an endorser for the loan. If you complete the MPN and then decide not to borrow for 12 months, you will be required to complete a new MPN.

STEP 5) Entrance Counseling
New Graduate PLUS borrowers must complete one-time loan entrance counseling session.

The U.S. Department of Education requires first-time borrowers at Lock Haven to complete a loan entrance counseling session. This session includes information on loan repayment obligations and the consequences of loan default. To complete the entrance counseling session, sign in at https://studentloans.gov . Be sure to choose the Lock Haven University as your school. You must use use your Federal Student Aid PIN to sign in and to complete the electronic MPN. Please visit the PIN website if you are a new user or have forgotten your PIN.

HOW TO TELL IF YOU HAVE COMPLETED A DIRECT GRADUATE PLUS LOAN MPN
Sign in to the https://studentloans.gov website and click on the "Completed MPNS" link under "My Loan Documents".

HOW TO TELL IF YOU HAVE COMPLETED LOAN ENTRANCE COUNSELING
Sign in to the https://studentloans.gov website and click on the "View Previously Completed Counseling" link in the "Counseling" section.

HOW TO CANCEL A FEDERAL DIRECT GRADUATE PLUS Loan
You have the right to reduce or cancel your Federal Direct PLUS Loan. You may do so by: (1) completing and returning a Loan Change/Cancellation Form ; OR (2) completing and returning the notification you receive from LHU when loan funds are credited to your student account.


Private Alternative Loans

Financing the cost of a college education can be a complex task. There are a number of options available to assist families who are in need of a way to bridge the gap between what their financial resources will allow and the cost of higher education. There are various private alternative loans via which a student may borrow additional funds for their education. Alternative loan lenders typically require a student borrower to apply along with a credit worthy co-borrower.

Lock Haven University is not able to recommend, promote, or endorse any specific loan products or lenders.

To assist you in your selection process, we have compiled a historical listing of available alternative loan lenders, which LHU students have borrowed from over the past three years.  The order in which the lenders are listed in no way infers preference of one lender over another. The listing contains only a sampling of the many loan products available, and borrowers are free to choose the lender of their choice, regardless of whether they are on the listing. We encourage you to consider other loan products and to choose those whose repayment terms, services, and borrower benefits best meet your needs.

Lock Haven University’s historical lender listing is provided by BorrowSmart , a debt management counseling tool developed by Tuition Management Systems to help families explore options for paying educational expenses and select the best choice for their budget.

 

First Quality Loan

The Damaghi/First Quality Loan is a 5% fixed interest rate loan, which is issued to LockHavenUniversity students to assist with educational expenses. The loan is made possible through funding provided by the Damaghi family of First Quality Enterprises.

Students must meet all of the loan criteria in order to receive the loan. They must be a full-time student, a Pennsylvania resident, meeting Satisfactory Academic Progress, have financial need, and be a sophomore, junior or senior. Students will be expected to repay the loan within six months after receipt of an undergraduate degree or of the date upon which the student is no longer enrolled at LockHavenUniversity. Students may qualify for loan forgiveness upon graduation from LockHavenUniversity if they continue to reside and/or work in one of the following counties: Clinton, Potter, Lycoming, Union, Centre, Clearfield, and Cameron.