Student Loans
Student loans are playing an increasingly significant role in financing
post-secondary education. Because of the favorable terms and conditions
of educational loans, you should not be afraid to borrow as an investment
in your future. On the other hand, loans represent debts that must be repaid,
and failure to repay can result in substantial penalties. The federal government
has expanded the limits on these vital loan programs to assure that students
will have access to and a choice among educational institutions.
The Federal Perkins Loan (formerly National Direct Student Loan)
is a federal loan for undergraduate and graduate students enrolled for at
least six credit hours at Ohio University. Repayment and interest accrual
begins nine months after you graduate, leave school, or drop below halftime
enrollment as defined by the university. The interest rate is currently
five percent, and loans can be included under the loan consolidation provisions
contained in the Reauthorization Act of 1992. You must sign a promissory
note before your account can be credited or a check disbursed.
The William D. Ford Federal Loan is a federal loan for undergraduate
and graduate students enrolled at least halftime in a certificate or degree-granting
program at a participating post-secondary institution. ALL APPLICANTS FOR
THE WILLIAM D. FORD FEDERAL LOAN MUST FILE A FREE APPLICATION FOR FEDERAL
STUDENT AID (FAFSA) TO DETERMINE ELIGIBILITY.
The Federal Direct Subsidized Student Loan maximum for graduate students
is $8,500 per academic year. To qualify for the Subsidized Federal Direct
Student Loan, you must demonstrate an unmet need after other types of assistance
such as the following: (1) tuition scholarships, (2) fellowships, (3) research
and teaching associateships, and (4) graduate research associateships have
been considered. You must obtain specific information, requirements, and
procedures from the appropriate academic departments.
Eligibility for the Federal Direct Subsidized Student Loan is determined
by the Federal Methodology need analysis on the FAFSA and must not exceed
the difference between the cost of education (budget) minus the expected
family contribution and other aid estimated to be made available. If you
do not qualify for the maximum Direct Subsidized Student Loan, you may apply
for the Direct Unsubsidized Loan (interest is not subsidized while in school).
You are responsible for the interest, and if you elect not to pay the interest
while attending school it will accrue on the loan principal. Borrowers will
have a variable interest rate. Interest rates are tied to 91-day Treasury
bills plus 3.1 percent.
If eligible, you may borrow up to $10,000 in additional Direct Unsubsidized
Loans. The interest rate is variable. All loan proceeds are disbursed in
equal installments by term and are mailed to your local address.
Loan repayment may be deferred for certain conditions, and loan consolidation
is possible under the Reauthorization Act. All first-time borrowers at Ohio
University must attend an entrance interview before receiving their first
disbursements.
Ohio University Loans are institutional funds made available to students
on a temporary basis to provide cash while waiting for disbursement of financial
aid or earnings from employment. You must complete a one-page loan application
and have it approved before a loan check is issued. If you are in default
on previous loans and/or federal loans, you are not eligible to receive
an institutional loan. Borrowers who are not aid recipients are charged
a $4 processing fee and an interest rate of 9 percent. You must have a guaranteed
source of repayment within either 30 or 60 days from the time the loan is
issued.
Return to 1995-1997 Graduate Catalog Table of Contents
University Publications and the Computer Services Center revised this file (http://www.ohiou.edu/~gcat/95-97/finance/loans.html) April 13, 1998.
Please e-mail comments or suggestions to "gcat@www.ohiou.edu."