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Since Lyon College participates in the Federal Family Education
Loan Program (FFELP), you will borrow from a financial institution. (Preferred
Lender List)
Two types of Stafford Loans are described below.
Subsidized Stafford Loan -
Subsidized loans are awarded based on financial need. The
interest rate is a fixed rate of 6.8%. Interest payments
are paid by the federal government while you are enrolled at least
half-time. Repayment begins 6 months after a student completes school or
drops below half-time enrollment. Federal regulations require all
first-time full time Loan borrowers to participate in the Stafford
Entrance Loan Counseling before receiving the first disbursement of loan
proceeds. You can complete this counseling on line at
www.mapping-your-future.org.
Unsubsidized Stafford Loan - Unsubsidized loans
are non-need based, so students at any income level can receive this
loan. The interest rate is a fixed rate of 6.8%. The student
is responsible for interest payments as soon as the loan is disbursed.
Students may choose to make the interest payments while in school or
defer the interest until repayment of the loan begins six months after
leaving school. Unpaid interest will be capitalized one time at the end
of the student's grace period. "Capitalize" means to add unpaid interest
to the principal amount borrowed which causes the student to pay
interest on accrued interest. Federal regulations require all
first-time full time Loan borrowers to participate in the Stafford
Entrance Loan Counseling before receiving the first disbursement of loan
proceeds. You can complete this counseling on line at
www.mapping-your-future.org.
Annual Loan Limits
| Student's Year in
School |
Dependent Undergraduate
Student |
Independent
Undergraduate Student |
| 1st Year |
$3,500 |
$6,625—No more than $3,500 of this amount
may be in subsidized loans. |
| 2nd Year |
$4,500 |
$7,500—No more than $4,500 of this amount
may be in subsidized loans. |
| 3rd and 4th Years (each) |
$5,500 |
$10,500—No more than $5,500 of this amount
may be in subsidized loans. |
| Maximum Total Debt from Stafford Loans
When You Graduate |
$23,000 |
$46,000—No more than $23,000 of this amount
may be in subsidized loans. |
Federal Parent "PLUS" Loan
PLUS Loans (Parent Loans for
Undergraduate Students) are made to parents to help pay
the educational costs of dependent children.
Credit-worthy parents may borrow an annual amount up to
the cost of attendance at the college minus the
student's other financial aid. Interest on the loan
begins to accrue as soon as the first disbursement of
the loan is made. Repayment of the loan begins within 60
days of the final loan disbursement. Click here to
apply for a
PLUS
loan. |
