Types of Aid Available-
All students are required to make a "self-investment" in their education. Student loans play a significant role in financing the education of Cal Maritime students. Perkins, Federal Direct Stafford Loans, and Parent Loans for Undergraduate Students (PLUS) are the best loans that students and their families can receive because they are federally regulated.
Always remember that they are loans that must be repaid. Failure to repay these loans can result in loan default, resulting in many years without the use of credit. To see how borrowing loans will impact you after you graduate, calculate your estimate monthly payment by using this loan calculator.
Federal Direct Subsidized Stafford Loan
Subsidized Loans are government insured, long-term, low-interest loans for eligible undergraduate students. The federal government pays the interest on the loan while the student remains enrolled in college at least half-time or more. Repayment begins six months after graduation or separation. The standard repayment period is 10 years, however students can take longer, if needed. Loans for the 2014-15 award year will have an interest rate during repayment of 4.66%.
An undergraduate student may borrow up to $3,500 for the first year of study, up to $4,500 for the second year, and up to $5,500 for the third through fifth years. Aggregate undergraduate borrowing may not exceed $23,000. The combined aggregate undergraduate/graduate limit may not exceed $65,500.
Federal Direct Unsubsidized Stafford Loan
Unsubsidized loans are long-term, low-interest loans for eligible undergraduate and graduate students who generally do not qualify for other need-based financial assistance or students who need loan assistance beyond the maximums provided by the subsidized loan program. Students can pay the interest while in school, or defer payments until the loan goes into repayment. Repayment on the loan begins six months after graduation or separation. The standard repayment period is 10 years, however students can take longer, if needed. Loans for the 2014-15 award year will have an interest rate of 4.66%.
The combined total of the Stafford Loan and Unsubsidized Stafford loan may not exceed regular Stafford loan limits ($31,000 for undergraduates/$57,500 for independent undergraduates, and $138,500 for combined undergraduate/graduates).
Federal Perkins Loan
The Federal Perkins Loan is awarded on the basis of financial need as determined by the EFC, the amount of funds the Financial Aid Office has to award and the FAFSA's completed by the March 2nd priority date. This loan has a fixed 5% interest rate. No interest accrues while you are in school and during a 9-month grace period after you either leave school, or cease to be enrolled at least half-time. The amount of the loan is adjusted annually depending upon the Perkins Loan funds available for disbursement.
Federal PLUS Loan
PLUS loans are government-insured, long-term, low-interest loans for eligible parents of dependent, undergraduate students who generally do not qualify for other financial assistance. Parents may borrow up to the total cost of their dependent student's education minus any other aid for which the students are eligible.
PLUS loans borrowed for the 2014-15 year will have an interest rate of 7.21%. Repayment begins 60 days after the funds are fully disbursed (usually towards the middle of Spring term), and the repayment term is 10 years. Parents have the option of deferring repayment on Parent PLUS loans while the student is in-school and for a six-month grace period after the student graduates or drops below full-time enrollment.
To qualify for a PLUS loan, parents must be a U.S. citizen or an eligible non-citizen, have a valid social security number and pass a credit check. The PLUS loan application can be found here.
For the credit check, parents generally must not have any outstanding tax liens, unpaid judgments, delinquent or defaulted loans, extensive credit card debt, bankruptcy, foreclosure or wage garnishment within the past five years. Parents who cannot pass the credit check may still be able to receive a PLUS loan if they know someone who can pass the credit check and is willing to co-sign their loan.
Dependent students whose parents have been denied a PLUS loan may be eligible to apply for additional Unsubsidized Loan.
In addition to the federal loan program, many lenders offer alternative educational loans. If you will be applying for a private loan, be sure to read the terms of the loan, and students will need to complete a FAFSA to determine their eligibility for federal loans.