Loans are the only form of financial aid that must be repaid. They are an
excellent low-interest source of paying college expenses; however, it is important
to be a responsible borrower--borrow only what you need to cover educational expenses
not the maximum. Federal loans have fixed interest rates, do
not require a credit evaluation, and in most cases, does not have to be repaid
until after you graduate, withdraw, or otherwise cease half-time enrollment.
Below is information on Federal Loan Programs available at LaGrange College.
Federal Perkins Loan
is a low interest, repayable loan that may be awarded to undergraduate and graduate
students with exceptional financial need. The interest rate is 5 percent and no
interest accrues on the loan while the borrower is enrolled half time and during
the grace period. Repayment begins nine months after graduating or withdrawal from
school. This loan program has cancellation provisions for critical fields of study.
Contact the Financial Aid Office for more information.
Federal Subsidized Direct Loan
is a repayable loan awarded on the basis of financial need. The Federal government
pays any accrued interest on the loan while the student is enrolled in school,
during the grace period or during authorized periods of deferment. The current interest rate on subsidized loans is 4.29%. Undergraduate
students may borrow annually a combination of subsidized and unsubsidized loans
not to exceed $3,500 as a freshman; $4,500 as a sophomore; $5,500 as a junior or
, graduate students are no longer eligible for subsidized loans.
Federal Unsubsidized Direct Loan
is not awarded on the basis of financial need. Any student regardless of income
may participate in this loan program. However, interest does accrue from the date
of disbursement until the loan is paid in full. The current interest rate on unsubsidized loans is 4.29% for undergraduate students and 5.84% for graduate students. The borrower has the options of
paying the accrued interest or having the interest capitalized.Undergraduate students
may borrow annually a combination of subsidized and unsubsidized loans not to exceed
$3,500 as a freshman; $4,500 as a sophomore; $5,500 as a junior or senior. Graduate
students may borrow $20,500 annually.
Federal Direct Parent Loan for Undergraduate Students (PLUS)
is available to the parents of a dependent student to defray remaining educational
expenses after all other financial aid resources are exhausted. Eligible applicants
may borrow up to the cost of attendance less other financial aid. The current interest
rate is 6.84% and will not exceed 9%. Unlike the Federal Stafford Loan program, PLUS borrowers
must be credit worthy to qualify for this loan and repayment begins within 60 days
of the loan disbursement. Parents can apply online at
Federal Direct Graduate PLUS Loan
is available for graduate students who need to borrow funds beyond the
federal direct subsidized and unsubsidized loan limits. The Graduate PLUS
Loan will have a fixed 7.9 percent interest rate, a 4.0 percent origination fee
deducted at disbursement, and all other
federal direct loan criteria. No
annual or aggregate borrowing limits are imposed, other than cost of attendance
less other financial aid received.
Private/Alternative Educational Loans
Private (Alternative) Loans are non-federal educational loans through private lenders. Unlike Federal Direct Loans, private alternative loans require the applicant be credit-worthy or have a credit-worthy co-signor. We
loan option be used as a last resort after all federal loan options, including a Parent PLUS Loan, if a dependent student, have been
The interest rate, repayment fees and terms are more favorable under the Federal Direct Loans. If after exploring all financial aid options you find that you must apply for a private alternative loan, research different lenders before selecting a lender. We recommend that you compare the lenders loan products, interest rates, and repayment plans
before applying for a private alternative
does not endorse or promote any lenders that offer private alternative loans. However, we provide a Private Educational Loan List
of lenders from whom our students have borrowed
over the past five years as a courtesy. This list is not intended to endorse any one lender or to serve as a preferred lender list.
Student Access Loan (SAL) is a need-based, State of Georgia, low interest loan program that assist undergraduate Georgia residents who are U.S. citizens or eligible non-citizens in meeting the gap in their educational costs. Funding in this program is limited and applications are selected through a lottery after the application period expires. Selected applicants may borrow up to $8,000 annually. Interest rates are range from 1% to 8% depending on the length of time it takes the applicant to complete his/her degree program. For more information on the Student Access Loan, please visit www.gacollege411.org.
Private Education Loan Applicant Self Certification Form
The Truth in Lending Act and the Higher Education Act of 1965, as amended, require a lender to obtain a Private Education Loan Self Certification Form
from the private loan applicant before disbursing a private education
loan. The self-certification form collects cost of attendance and
estimated financial assistance information used in determining your
maximum private loan eligibility. The information required for the
completion of the form can be obtained from the Financial Aid Office.