Temple University's Office of Student Financial Services

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.

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.

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.

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.

Part of your offer of financial aid will be a Federal Stafford Loan if you indicate an interest in loans on the FAFSA application. Temple Student Financial Services will pre-certify your loan eligibility; new Temple borrowers will receive a Stafford Master Promissory Note in the mail from AES Loans, continuing students receive a new loan disclosure each year. The Master Promissory Note is good for a period of ten years.

Federal Stafford Loans are need-based loans provided directly to students through banks or other lending institutions. The amount you can borrow as an undergraduate each year depends on your grade level. If you qualify for the interest subsidy based on your need, the Federal government will pay the interest while you are in school until six months after your studies have ended. You must then begin repayment of principal and interest.

If you do not have sufficient need to qualify for a subsidized loan, you may qualify for an unsubsidized loan. You are responsible to pay the interest on this loan while you are in school and during the summer or having the interest capitalized. Repayment of principal and interest begins six months after your studies have ended.

Additional unsubsidized Stafford loan limits applicable to undergraduate students are increased for loans first disbursed on or after July 1, 2008. Subsidized limits (up to base amount) are unchanged. For students enrolled as regular students in eligible programs, annual Stafford loan limits are as follows:

Undergraduate Dependent Students: $31,500 (no more than $23,000 of which can be subsidized)

Undergraduate Independent Students: $57,500 (no more than $23,000 of which can be subsidized)

Graduate and Professional Students: currently $138,500 (no more than $65,500 of which can be subsidized

Variable Rates for Loans First Disbursed Between July 1, 1998 and

June 30, 2006

These rates were calculated based upon statutory formulas and equal the bond equivalent rate of the 91-day Treasury bills auctioned on May 27, 2008, plus certain statutory percentage add-ons. The 91-day Treasury bills were auctioned at 1.905 percent, rounded to 1.91 percent.

The Stafford annual loan limit for a student enrolled in a graduate or professional program of study is $20,500.00 for each academic year, with subsidized loans comprising no more than $8,500.00 of the total amount borrowed. A graduate or professional student's unpaid principal amount of Stafford loans (including all SLS and Direct Stafford loans received or any portion of an outstanding consolidation loan that fully repaid such loans) may not exceed $138,500.00. Subsidized Stafford loans may comprise no more than $65,000.00 of the total amount borrowed. An exception is made for increased annual and aggregate unsubsidized Stafford loan limits for authorized health professions students.

Students interested in Federal Stafford Loan funding must be enrolled at least half-time

(6 credits each semester for undergraduates and 4.5 credits each semester for graduate students). Two federal loan requirements to be aware of when borrowing Federal Stafford and Federal PLUS loans are below; check your loan disclosure statement you receive from your lender for information on your loans expected disbursement dates to the University.

Students may select any lender or guarantor they choose for their Stafford Loan. Beginning in the 2008-2009 school year, some lenders are adjusting both the fees they will charge and benefits they offer to Stafford Loans borrowers. When choosing a lender, students should inquire about fees charged at the time the loan is originated as well as benefits that may be offered to reduce costs during the repayment of a Stafford Loan. Information about loan options can be found at individual lender websites. In addition, you may also want to consult the AES (American Education Services) website for additional information about lenders participating in the Keystone BEST option at http://www.aesSuccess.org

Although our process directs you to the aesSuccess.org website, again, you are free to select any participating lender/guarantor that you wish. If you do not wish to use AES as your guarantor or if you do not find a lender that you want to use on the AES MPN completion website, simply call our office at 245-204-2244 or email us at sfs@temple.edu and we will assist you in determining the correct process for your lender/guarantor choice. We want to assure you that we will not refuse to certify or otherwise deny or delay certification of a loan based on your selection of a lender and/or guarantor.

Federal PLUS Loans are for parent borrowers. These loans provide additional funds for educational expenses that may are not covered by financial aid the student is receiving. The annual interest rate is tied to prevailing interest rates on 91-day T-bills of the U.S. Treasury. Repayment of principal and interest begins 60 days after the loan is disbursed.

For the 2008-09 school year, some lenders are adjusting both the fees they will charge and benefits they offer to Parent PLUS loan borrowers. When choosing a lender, parents should inquire about fees charged at the time the loan is originated as well as benefits that may be offered to reduce costs during the repayment of a PLUS Loan. Information about loan options can be found at individual lender websites. In addition, you may also want to consult the AES (American Education Services) website for additional information about lenders participating in the Keystone BEST option at http://www.aesSuccess.org

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.

The Graduate PLUS loan gives a graduate student a viable alternative to private loans.

Some basic facts about the Graduate PLUS:

* Borrow up to "cost of education less aid"
* Student is the borrower - no cosigner required.

* First time borrowers are required to complete an Entrance Interview
* May reduce high-cost alternative borrowing.
* Fixed interest rate - 8.5%, capped at 8.5%
* Deferred payment while enrolled in school.
* No aggregate or annual loan limits

* Based on simplified credit criteria regardless of income or employment status
* Endorser option available
* Unlimited in-school deferment
* Able to consolidate through the Federal Consolidation Loan Program.

Beginning with the 2008-09 school year, some lenders are adjusting both the fees they will charge and benefits they offer to Graduat PLUS Loans borrowers. When choosing a lender, students should inquire about fees charged at the time the loan is originated as well as benefits that may be offered to reduce costs during the repayment of a Graduate PLUS Loan. Information about loan options can be found at individual lender websites. In addition, you may also want to consult the AES (American Education Services) website for additional information about lenders participating in the Keystone BEST option at http://www.aesSuccess.org

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. 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.

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%.