Beginning in the 2010-2011 academic year, all Federal Education Loans will be a made under the William D. Ford Federal Direct Student Loan (Direct Loan) Program.
The amount on your eligibility letter indicates the maximum loan for which you are eligible. There is a 1% origination fee deducted from the loan proceeds. The net amount of the loan after these deductions is the amount that will actually be applied to your tuition account.
The Federal Stafford Loan is a long-term, low interest federally regulated student loan. The interest rate is fixed at 6.8%.
The standard repayment period for Stafford Loans is ten years, beginning six months after graduation or falling below half-time status. Failure to make loan payments can result in adverse credit rating, legal action and wage garnishment. Even if your loan is sold to another lender or the servicer changes, you are responsible for making monthly payments, regardless of whether or not the paperwork has been transferred. Filing for personal bankruptcy does not relieve you of your obligation to repay your student loans.
Federal Subsidized Stafford Loan
The Federal Subsidized Stafford Loan is need based. Interest is subsidized (paid) by the federal government as long the student is attending school at least half-time
Federal Unsubsidized Stafford Loan
The Federal Unsubsidized Stafford Loan is non-need-based loan. All the terms are the same as for the Federal Stafford loan except that interest begins accruing immediately and is the student’s responsibility, with the option to defer interest payment.
Effective July 1, 2008, dependent and independent undergraduate students are eligible for an additional $2,000/year unsubsidized Stafford funding. The follow details the new limits available for the 2008-2009 academic year:
For dependent students the annual limits for the combination of subsidized and unsubsidized Stafford are as follows:
First-Year $5,500/year ($3,500/year may be subsidized if you qualify)
Sophomore Year $6,500/year ($4,500/year may be subsidized if you qualify)
Junior and Seniors $7,500/year ($5,500/year may be subsidized if you qualify)
For independent students the annual limits for the combination of subsidized and unsubsidized Stafford are as follows:
First-Year $9,500/year ($3,500 may be subsidized if you qualify)
Sophomore Year $10,500/year ($4,500 may be subsidized if you qualify)
Juniors and Seniors $12,500/year ($5,500 may be subsidized if you qualify)
Federal Perkins Loan
Perkins loans are long-term, 5% interest, need-based loans administered by the university for which repayment begins nine months after the student drops below half- time status. Loan amounts range from $500–2,000.
As of August 1, 2009, ECSI is the Service for Perkins Loans from Naropa University. We are no longer working with Campus Partners. Students who currently have Perkins Loans may contact ECSI at:
Federal Parent Loan for Undergraduate Students (PLUS)
This loan is available to credit worthy parents of dependent undergraduate students. Under Direct Leding, the interest rate on a PLUS loan is fixed at 7.9%. There is a 3% origination fee adeducted from the loan proceeds. Repayment begins sixty days after the final disbursement.
PLUS loan money will first be applied to tuition and fees, with any remaining PLUS money being returned to the parent. To apply for the Parent PLUS loan for 2010-2011, please complete the following steps:
Sign a Master Promissory Note at www.dlenote.ed.gov. (Please note: currently this website works with Internet Explorer and Mozilla Firefox.)
Private Loan
Naropa University awards educational loans primarily from the federal student loan programs (Stafford, PLUS and Perkins). Some lenders advertise private loans that “mimic" the federal student loan programs but which differ in important ways: the interest rates are variable and have no ceiling, the loans are credit based, the lender may charge high fees, and private loans result in an additional monthly student loan payment for the student because they cannot be included in a federal Consolidation loan after the student finishes college.
Naropa University requires an extensive review of the student's financial situation before possibly including a private loan in the student's financial aid package. Naropa University reserves the right to refuse certification of a private student loan even though a lender may have approved the student for a private loan. Aid from all sources cannot exceed the student's cost of attendance. Please send an email to finaid@naropa.edu with the words "Private Loan" in the subject line if you would like to start the process of requesting consideration of a private loan to be included in your financial aid package.
