Loans/Debt Management
FEDERAL STAFFORD STUDENT LOAN can borrow up to the cost of the college education, less aid, at a
variable rate of interest (currently not to exceed 9%). Repayment
A Federal Stafford Loan offers freshman students up to $3,500 and
begins 60 days after the final disbursement of the funds, according to
sophomores up to $4,500 per year. Students enrolled in certificate
the terms negotiated by the bank. Regulations require students to first
programs will remain at freshman level for borrowing purposes. THIS IS
utilize all eligibility for grants and the Federal Stafford Loan before
A LOAN AND MUST BE REPAID. Interest rates vary annually. For loans
receiving a Federal PLUS loan. THIS MONEY MUST BE REPAID. To
first disbursed on or after July 1, 2008, the interest rate is a fixed
determine eligibility, you must apply for federal aid, as outlined in this
6.00%. If you already have a Stafford Loan, borrowing a new loan will
brochure. Funds are made in multiple disbursements and given to the
not affect the rate or terms of your previous loan(s). You may qualify for
parent(s) after tuition and fees have been paid.
a Subsidized and/or an Unsubsidized Stafford Loan up to the amounts
listed above. First-time borrowers will be required to complete online
loan counseling. Instructions for doing this will be included with your
HOPE SCHOLARSHIP TAX CREDIT
award notification. The Hope Scholarship is a non-refundable federal income tax credit
of up to $1,500 – 100% of the first $1,000 and 50% of the next
Subsidized Stafford Loans – These loans are based on financial
$1,000 – for qualified tuition and related expenses paid during the first
need; therefore, some students may not qualify. With a Subsidized
two years of college. This credit is available for each student enrolled
Stafford Loan, no interest accumulates and no repayment is
at least half-time. The amount of your Hope credit for 2007 is gradually
required as long as the student is enrolled in college at least
reduced (phased out) if your modified adjusted gross income (MAGI) is
half-time. Students have six months after dropping below half-time
between $45,000 and $55,000 ($90,000 and $110,000 if you file a
status before repayment begins and interest accrues.
joint return).
Unsubsidized Stafford Loans – Students who do not qualify for
Subsidized Stafford Loans may borrow up to the maximum amounts LIFETIME LEARNING TAX CREDIT
designated on the award notification through Unsubsidized Stafford
The Lifetime Learning Tax Credit is a non-refundable federal income
Loans. The interest rate is the same, but interest will accrue and
tax credit of up to $2,000 – 20% of the first $10,000 – for qualified
can be paid by the borrower while he/she is in school and
tuition and related expenses. The amount of your lifetime learning
during the grace and repayment period. Independent students
credit for 2007 is gradually reduced (phased out) if your modified
do have the option of borrowing an additional $4,000 in Unsubsidized
adjusted gross income (MAGI) is between $45,000 and $55,000
Stafford Loan Funds. To be considered for these additional funds,
($90,000 and $110,000 if you file a joint return).Students who do
please contact the Financial Aid Office.
not meet the Hope Scholarship eligibility requirements may claim
To determine your eligibility for these programs, you must apply for this credit. The income ceiling is the same as the Hope Scholarship.
federal aid, as outlined in this brochure. Funds are issued only after
tuition and fees have been paid. First-year, first-time borrowers will not STUDENT LOAN INTEREST
receive Stafford checks until 30 days after the first day of class.
Students can deduct up to $2,500 of student loan interest paid in
CREDIT RECORDS: Student loans can be an excellent way to finance 2007 on any federal or private educational loans on your federal
an education and establish a good credit rating at the same time. When tax return (1040). The loans must have been used to fund half-time
it is time for repayment, always communicate with your lender when or greater attendance. The credit is gradually reduced for single
changing your name, address or phone number or if you have difficulty taxpayers with incomes above $55,000 ($110,000 for joint returns)
making payments. and is not available to those with incomes above $70,000 ($140,000
for joint returns).
FEDERAL PARENT LOAN FOR UNDERGRADUATE NOTE: These summaries are meant to give a general overview of
STUDENTS (PLUS) these educational tax initiatives. Please consult a tax advisor regarding
the specifics of your personal situation.
The Federal PLUS is for parents of dependent students. It is a loan in
which family income is not taken into consideration; therefore, the
program is open to almost any family that has good credit. The family
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