Educational
Loans
Student Lending Code of Conduct
Some loans are need-based; others are available to any enrolled student.
Although loan terms may vary, Temple uses a scheduled academic year that begins with the fall semester. The academic year is 30 weeks in length and is defined as fall semester (15 weeks), spring semester (15 weeks) with summer sessions as a trailer. Full-time undergraduate students are expected to enroll for 12 or more credits each semester and successfully complete at least 24 of those credits each academic year to maintain financial aid eligibility.Graduate students enrolled full-time (9 credits or more per semester) for the academic year must successfully complete 18 credits to maintain financial aid eligibility. Please review the Academic Progress Standards link on this web page.
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Interest rates on educational loans are usually lower than those for
personal bank loans, and the repayment period is extended. Some educational
loans defer repayment until you graduate or are no longer enrolled.
All recipients of Federal Perkins, Federal Stafford, Nursing Student,
and Health Professions loans must have an entrance and exit interview
at the University.
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Educational loans carry specified interest rates and repayment schedules. You will be informed of these at the time the loan is made, and you must adhere to the schedule to avoid defaulting on the loan.
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Student Loan Comparison Web Sites
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Federal
Perkins Loans
Federal Perkins Loans are need-based loans for undergraduate
and graduate students awarded by the University. They bear a 5% interest
rate. You will be considered for this loan when you file the FAFSA; you
do not need to file a separate application. Undergraduate students may
borrow up to $4,000 in an academic year, but no more than $20,000
aggregate total.
However, the amount is determined by the Student Financial Service Office
based on availability of funds. Interest charges do not accumulate while
you are enrolled in school. Repayment begins six months after graduation,
termination of your student status, or after you are enrolled on a less
than half-time basis. .
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Federal
Direct Loans
Click here for a detailed FAQ regarding the Federal Direct Loan Program
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William D. Ford Federal Direct Subsidized and Unsubsidized Loans are long-term, low-interest loans from the U.S. Department of Education.
To receive a Federal Loan, you must file the annual FAFSA
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The Subsidized Direct Loan is need-based. The federal government pays the interest on the loan during: (1) your enrollment in school on at least a half time basis, (2) a six-month grace period immediately following your separation from school, and (3) a deferment, which is a temporary, authorized time when your payments may be postponed.
The Unsubsidized Direct Loan is non-need-based. "Unsubsidized" means the federal government does not pay the interest on your behalf. You are responsible for paying all interest on the loan. Interest is charged beginning the day the loan is paid to you until the day the loan is repaid in full. You either may choose to pay the accumulated interest while you are in school, or to have the unpaid, interest capitalized, i.e., added to the principal balance of the loan. Note: If your loan interest is capitalized, it will increase the amount you have to repay.
Borrowing can be costly. We recommend you consider borrowing only if you have exhausted all other options.
Only borrow what you need. Make a budget for yourself to keep your debt within manageable limits
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Your award package may include a combination of Subsidized and Unsubsidized loans.
Annual Loan Limits
The amount in Direct Loan funds that you are eligible to borrow each academic year is limited by (1) your grade level (2) whether you are a dependent or an independent student, (3) your financial need, and (4) your cost of attendance. You cannot borrow more than your financial need or the cost of attendance (your budget.)
Dependent Student |
Base Amount
(Subsidized or Unsubsidized) |
Additional Unsubsidized Loan
effective July 1, 2008 |
Total Annual Combined Maximum Amount of Subsidized & Unsubsidized Loans |
| Freshman |
$3,500 |
$2,000 |
$5,500 |
| Sophomore |
$4,500 |
$2,000 |
$6,500 |
| Junior/Senior |
$5,500 |
$2,000 |
$7,500 |
| Prep Coursework for entry into an Undergraduate Program |
$2,625 |
0 |
$2,625 |
| Teacher Certification Coursework or Prep Coursework for entry into a Graduate/Professional Program |
$5,500 |
0 |
$5,500 |
| Independent Student (and Dependent Students Whose Parents are Denied a PLUS Loan) |
Base Amount
(Subsidized or Unsubsidized) |
Additional Unsubsidized Loan
effective July 1, 2008 |
Total Annual Combined Maximum Amount of Subsidized & Unsubsidized Loans |
| Freshman |
$3,500 |
$6,000 |
$9,500 |
| Sophomore |
$4,500 |
$6,000 |
$10,500 |
| Junior/Senior |
$5,500 |
$7,000 |
$12,500 |
| Prep Coursework for entry into an Undergraduate Program |
$2,625 |
$6,000 |
$8,625 |
| Teacher Certification Coursework or Prep Coursework for entry into a Graduate/Professional Program |
$5,500 |
$7,000 |
$12,500 |
| Graduate Student |
Base Amount
(Subsidized or Unsubsidized) |
Additional Unsubsidized Loan |
Total Annual Combined Maximum Amount of Subsidized & Unsubsidized Loans |
|
$8,500 |
$12,000 |
$20,500 |
Aggregate Loan Limits (Effective July 1, 2008)
Undergraduate Dependent Students can borrow a maximum total of $31,000 (of which no more than $23,000 can be subsidized loans).
Undergraduate Independent Students can borrow a maximum total of $57,500 (of which no more than $23,000 can be subsidized loans).
Graduate/Professional Students can borrow a maximum total of $138,500 (of which no more than $65,500 can be subsidized loans).
NOTE: Direct Loans processed for graduate and professional students made on or after July 1, 2012 will be entirely unsubsidized. As a result of the Budget Control Act of 2011, the interest subsidy will no longer be available on loans for graduate and professional students.
Allopathic Medicine and other graduate students in certain health professions may borrow a maximum of $224,000 (of which no more than $65,500 can be subsidized).
These graduate loan limits include all loans borrowed as an undergraduate.
Loan Interest Rates Effective July 1, 2008
Over a four-year period beginning July 1, 2008, the interest rate on Subsidized Loans made to undergraduate students will be reduced. These rates do not affect any prior loans made to borrowers; the terms and interest rates of those loans remain the same. The applicable interest rates for loans made during this period are as follows:
| UNDERGRADUATE STUDENTS - First disbursement of a loan: |
Interest Rate on the Unpaid Balance of the Subsidized Loan |
Interest Rate on the Unsubsidized Loan Balance |
| Made on or after |
And made before |
| July 1, 2008 |
July 1, 2009 |
6.0 percent |
6.8 percent |
| July 1, 2009 |
July 1, 2010 |
5.6 percent |
6.8 percent |
| July 1, 2010 |
July 1, 2011 |
4.5 percent |
6.8 percent |
| July 1, 2011 |
July 1, 2012 |
3.4 percent |
6.8 percent |
| July 1, 2012 |
July 1, 2013 |
6.8 percent |
6.8 percent |
| GRADUATE STUDENTS |
Interest rate of loans disbursed after July 1, 2006 |
|
6.8 percent |
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Students interested in
Federal Direct Loan funding must be enrolled at least half-time
(6
credits each semester for undergraduates and 4.5 credits each semester
for graduate students).
Loan Fees
The Department of Education assesses fees on each federal loan it originates
but currently offers a rebate on the upfront fee. While in repayment, students
will have to pay the initially rebated amount if they fail to make 12 on-time
consecutive payments. Effective July 1, 2012, rebates will no longer be offered
upfront. Students will not lose the ability to receive a .25% interest rate
reduction by setting up automatic electronic debits during repayment.
For example, for every $1,000 of Stafford Loans borrowed, the origination
fees will be $10 (1%). Prior to July 1, 2012, the fees are $5 (0.5%).
Graduate students and parents that borrow PLUS Loans will pay fees of
$40 (4%) per $1,000 borrowed, compared to $25 (2.5%) of fees
now.
Loan Entrance Counseling
Entrance loan counseling is required for first-time Federal Loan borrowers. Counseling can be completed online and will help you understand your rights and obligations as a student loan borrower. Loan counseling must be completed before you can receive loan funds.
Subsidized and Unsubsidized Direct Loan Entrance Counseling
Loan Promissory Note
As a Federal Direct Loan borrower, you must sign a Master Promissory Note (MPN) before your loan can be disbursed. The Federal DIrect Loan MPN is valid for 10 years.You have to sign a Loan MPN only once while you are enrolled at Temple University.
All students who wish to borrow Federal Subsidized and Unsubsidized Loans will be required to complete a Federal Direct Loan Master Promissory Note. Complete a Direct Loan Master Promissory Note at http://studentloans.gov
- You will need the PIN number you used to file your FAFSA. If you do not have your PIN, see www.PIN.ed.gov for more information.
Direct Student Subsidized/Unsubsidized Loan MPN Instructions (for all students)
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Federal
Direct Parent Loans for Undergraduate Students (PLUS)
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Federal Direct PLUS Loans are for parent borrowers of dependent students . These loans provide additional funds for educational expenses that may are not covered by financial aid the student is receiving. A current FAFSA must be filed in order for a student to receive a Federal Direct PLUS Loan.
Parents apply for a Parent PLUS loan through the Federal Direct Loan program at www.studentloans.gov. Parents must also complete the Parent Plus Loan Request Form and submit it to the SFS office. This form is available in the FORMS section of this website.
Click for .PDF instructions that will help you apply for a Parent Plus Loan at
www.studentloans .gov: Direct Parent PLUS Loan Instructions
Annual Loan Limits and Interest Rates
A parent can borrow a PLUS Loan for an amount that is equal to the student cost of attendance (student budget) minus any other financial aid the student is receiving. The fixed interest rate for Federal Direct PLUS Loans is 7.9%.
Who Can Borrow
Parents* may borrow a Direct PLUS Loan to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time.
*The parent-borrower must be the student's biological or adoptive mother or father. The spouse of a parent who has remarried, (step-parent), is also eligible to borrow a PLUS Loan on the student's behalf, if his/her income and assets will be taken into account when calculating the dependent student's expected family contribution (EFC). A legal guardian is not considered a parent for any federal student financial aid purposes.
Parent Eligibility Requirements
A parent PLUS loan borrower must meet the same citizenship and residency requirements as the student. The parent must not owe a refund on a federal student financial aid grant or be in default on a federal student loan.
An undergraduate student whose parent is denied a PLUS loan, may be eligible for additional unsubsidized Stafford funds. Students should notify the Student Financial Services if their parent is denied a PLUS loan and request the additional unsubsidized Stafford Loan.
Repayment of Federal Direct Parent Plus Loans
Repayment begins within 60 days of the final loan disbursement during the academic year, and parents will have ten years during which to repay the loan.
Postpone Repayment on a Federal Direct Parent PLUS Loan
Parents can defer repayment of the Federal Direct Parent PLUS Loan for up to one year by applying for a General Forbearance, and can re-apply for this provision annually while their student is enrolled at least half-time as an undergraduate. To apply electronically, parents can complete the electronic General Forbearance Form or contact the U.S. Department of Education's processing center at (800) 848-0979.
To qualify, parents must state verbally or in writing that they are financially unable to make the monthly payments. Parents cannot apply for this forbearance until the loan has fully disbursed and prior to the repayment period beginning. If parents choose the forbearance provision, it is important to note you can pay the interest while the student is in school to decrease the amount that will be repaid.
Additional information can be found on the Federal Student Aid web site.
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Federal Direct Graduate PLUS
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Graduate students who need to borrow funds beyond the federal subsidized, unsubsidized, and Perkins loan limits may apply for additional funds through the Federal Direct Graduate PLUS Loan program. The Direct Graduate PLUS Loan is offered to qualified graduate or professional students with or without financial need who meet all financial aid eligibility requirements.
Graduate students can apply for the Graduate PLUS loan at www.studentloans.gov
Click for .PDF instruction that will help you apply for a graduate PLUS loan at www.studentloans .gov: Direct Graduate PLUS Loan Instructions
To receive a Federal Graduate PLUS Loan, graduate students are required to file the annual FAFSA, first utilize the Direct Stafford Loan Program, and lastly submit the SFS Graduate Enrollment form available in the FORMS section of the SFS website.
Borrowing can be costly. We recommend you consider borrowing only if you have exhausted all other options.
Only borrow what you need. Make a budget for yourself to keep your debt within manageable limits.
The lender for the Direct Graduate PLUS loan is the U.S. Department of Education. Repayment begins within 60 days after the loan is fully disbursed. However, an in-school deferment may be obtained from the U.S. Department of Education by students that meet their requirements. It is important to note that there is no grace period for this loan. Interest begins to accrue at the time the first disbursement is made.
Who Can Borrow
Students who have been admitted into a graduate or professional degree program of study. Post bachelor students taking courses to gain admission to a graduate or professional program are not eligible, neither are students taking courses necessary for their teacher certification.
Annual Loan Limit and Interest Rate
The amount of Graduate PLUS Loan that a student can borrow is equal to the cost of attendance (student budget) minus all other financial aid.
The Federal Graduate PLUS loan is a low-interest student loan for graduate students attending at least half-time. The interest rate is fixed at 7.9%. There is a 2.5% loan origination fee deducted from the loan by the U.S. Department of Education. This loan fee includes an up-front rebate that assumes you will make 12 on-time monthly payments. Please refer to the Federal Student Aid Q & A for further information regarding Direct PLUS Loans for Graduate and Professional Students.
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Alternative
Loans
The Office of Student Financial Services
realizes that need based aid financial aid sources are limited and do
not always cover the cost of education at Temple University.
Alternative loans generally have higher interest rates and fewer repayment options than federal loans. Generally, borrowers with better credit histories receive better loan terms.
Before borrowing an alternative loan, you should carefully consider your
present level of debt and repayment obligations on all loans.
Determine how much you need to borrow by working out a budget for your
educational costs and subtracting all your resources for those
costs.
Your ability to obtain alternative loan funding is largely
based on your credit-worthiness, and most programs require a co-signer.
When
available, we urge all students to use the lender's pre-approval
process. Most lenders offer an application process by phone or the
internet.
Student Loan Comparison Web Sites
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Nursing
Student Loan and Pharmacy Health Professions Student Loans
Nursing Student Loan and Pharmacy Health Professions
Student Loans are need-based programs. Nursing students may borrow up
to $2,500 a year; Pharmacy students may receive up to $2,500 a year
plus the cost of tuition. Repayment begins nine months after full-time
enrollment ends, but may be deferred for advanced professional training
or service in the armed forces or Peace Corps. Annual interest is 5%.
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