Federal Loan Programs
Federal Subsidized Stafford Loan
A Subsidized Stafford loan is one based on financial need (cost of attendance minus the EFC, minus all other aid awarded). Because of showing financial need, the interest that accrues on the loan while the student is in school, deferment periods or grace period, will be paid by the Department of Education. Students must complete the FAFSA first to get to the loan, then complete a Promissory Note with a lender to apply for the loan. Maximum limits on Subsidized Stafford Loans are $2625 a year for a first year student (1 - 29 hours earned) and $3500 a year for a second year student (30 or more hours earned). You must reapply for the loans each new academic year. Students must be enrolled in and attending at least 6 credit hours per semester at Cowley College to receive a Stafford loan.
Federal Unsubsidized Stafford Loan
An Unsubsidized Stafford Loan is one that is not based on financial need. The student will be responsible for all interest accruing on the loan from the start of the loan period. Students must still complete the FAFSA and a Promissory Note with a lender. Maximum limits per year are the same as the subsidized Stafford loans. The formula for determining eligibility is the cost of attendance minus all other aid awarded. Students can receive a combination of Subsidized and Unsubsidized Stafford Loans as long as the total borrowed does not exceed the annual loan limits. Independent students may also borrow an Additional Unsubsidized Stafford Loan up to $4000 per year ($2000 per semester). This requires an additional application to request the funds.
Parent PLUS Loan
This is a parent loan to help with the student's educational expenses. The student must still complete the FAFSA and the parent must complete a Promissory Note with a lender. The student must be enrolled in and attending at least 6 credit hours per semester. Amounts borrowed are determined from the cost of attendance minus all other aid. Parents must begin repayment within 60 days after the loan is fully disbursed. Students and parents must reapply for the PLUS loan each new academic year.
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