What About Finances?

Loans (or need-based assistance)

Student loans are often necessary for students who are trying to meet their educational goals. Many students will not qualify for such as scholarships. Even those who do qualify will rarely find that all of their expenses can be met with their gift aid. Unless these students’ families have saved a great deal of money for them to go to school, it can be next-to-impossible to go through school without taking out some student loans.

Let’s face it: loans are not the most desirable things in the world. But if loans can help us meet our goals, they can be worthwhile investments for the future. With a Masters degree from the Nicholas School, your earning power and opportunities will increase.

Many people mistakenly think that loans are not financial aid - that only scholarships and grants are truly ‘aid’. In fact, most educational loans offer rates that are far better than what banks can offer on regular consumer loans. Because federal loans are guaranteed by the government, lenders are able to offer extremely low rates on these loans, clearly making them attractive forms of financial aid.

As long as you are a U.S. citizen or permanent resident, have enrolled at least half - time, and have filed a FAFSA, you will be eligible for federal student loans - no matter how much money you or your parents make. The types of loans for which you are eligible may vary, but every otherwise-eligible student will qualify for federal loans regardless of their family’s income.

How do I get a student loan?

For most loans, the answer is simple: Start by filling out the FAFSA. We use the FAFSA to determine your eligibility for loans, and work-study.

Generally, once you submit the FAFSA, we will receive the information we need from the federal processor in about 3 weeks. At that time, we may ask for some additional documentation from you, or we may just offer you some awards on a Financial Aid Award Notice.

If you are offered loans on your FAAN and want to receive the funds, you’ll accept them by signing, dating and returning your FAAN to the Enrollment Services office.

All educational loans require the lender to be sent 1) certification from The University and 2) an application/promissory note from the borrower. For most Stafford and Private/Alternative loans, these certifications are sent electronically (through a guarantor) to the chosen lender. Loans which do not go through lenders with whom we work electronically are hand-certified by our office and mailed.

The FAFSA itself acts as the application for Stafford and Perkins loans, but a promissory note is required in addition to the application. (A Master Promissory Note, valid for up to 10 years for a student who keeps the same lender, is available for Stafford loans; this allows a student to only have to fill out one Stafford promissory note during their entire time in school.)

All private loans will require a separate application and promissory note; some lenders have these available on their Web sites, but others will require a paper application.

Types of Loans

Stafford/Grad PLUS Lender List >

Subsidized Stafford Loan
$8,500 limit per academic year (dependent on eligibility) payments on both interest and principal deferred during enrollment six-month grace period after enrollment terminates
funds disbursed through an outside bank

Unsubsidized Stafford Loan
$12,000 limit per academic year (dependent on eligibility) payments on loan principal deferred during enrollment, but interest accrues six-month grace period after enrollment terminates funds disbursed through an outside bank

Perkins Loan
Fund disbursed through the University from a limited pool $6,000 limit per academic year (dependent on eligibility and availability of funds) payments on both interest and principal deferred during enrollment nine-month grace period after enrollment terminates

Graduate PLUS Loan
Graduate students may borrow up to the cost of attendance less student financial aid no needs test or income limit borrowers must pass a credit check funds disbursed through an outside bank

All federal loans are disbursed in installments (typically half during the fall semester and half in the spring). Most graduate students submit their applications over the summer or early in the fall semester, although students may apply for federal loans through April 30 of each academic year.