Educational Loans

Stafford Loans

The Federal Stafford Loan Program offers two types of loans; subsidized loans are based on financial need, unsubsidized loans are not based on need.

• Subsidized
  A subsidized Stafford Loan is a low-interest education loan for students who demonstrate financial need; the federal government subsidizes the cost to the borrower by paying the interest during certain times (for example, while the student is enrolled in school).
• Unsubsidized
  Eligibility for the unsubsidized Stafford is not contingent on financial need; thus, the borrower is responsible for interest that accrues on the loan while he or she is in school.

Terms

• Limits Stafford Loan limits are a maximum of $8,500 subsidized/$12,000 unsubsidized, or a total of $20,500 combined, for any twelve-month period.
• Interest rates The interest rate on both types of Stafford Loans is a fixed 6.8% as of July 1.
• Fees Your lender may deduct up to 3% in fees before disbursement to the University.
• Repayment Stafford Loan repayment begins six months after you graduate, or are no longer enrolled at least half-time.

First-time borrowers
If you are borrowing a Federal Stafford Loan for the first time, you will be sent a Master Promissory note (MPN), which you must complete and submit to your lender. Your lender will then deliver the loan funds to the University in two equal installments.

NOTE: All first-time borrowers must attend entrance counseling.

Federal Graduate Plus Loan

The Federal Graduate PLUS loan allows graduate/professional students to borrow long-term, fixed-interest-rate loans to help meet educational expenses. 

Terms

• Credit history To qualify, the borrower must be able to show a positive credit history (an endorser option may be available if your credit is questionable).
• Limits Your cost of attendance, less any other financial aid, will determine your annual maximum loan amount.
• Interest rates The Graduate PLUS loan is a fixed, 8.5% interest-rate loan. Interest accrual begins when the loan is disbursed.
• Fees Your lender may deduct up to 4% of the total loan amount before disbursement to the school.
• Repayment
  
  • Repayment begins 60 days after the loan is fully disbursed.
    
  • An in-school deferment is available for students enrolled at least half-time.
    
  • There is no grace period once the borrower graduates or ceases half-time enrollment.
    

Choosing a Lender

Selecting a Federal Family Education Loan Program (FFELP) lender is an important personal decision. And it's one you must make for yourself; we are not allowed to make the selection for you.

Some factors to consider:

• You may select any lender you wish; however, the lender you choose for your Stafford or Graduate Plus loan must participate as a FFELP lender.
• The basic interest rate and terms do not vary by lender, but some offer a variety of repayment incentives and services. The most current information is available at the lenders' Web sites.
• Not every lender participates in certain electronic processes designed to eliminate delays in loan origination and disbursement. For this reason, we recommend that you select a lender from those listed at www.elmselect.com. These lenders have been selected for inclusion based on their responses to a Request for Information and on prior customer service. The Financial Aid Office has not received any type of incentive from these lenders in exchange for inclusion.

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Alaska Supplemental Education Loan (ASEL)

ASEL, from the AlaskAdvantage program, is a state-sponsored loan program available only to Alaska residents. It requires a separate application that may be completed online at www.state.ak.us/acpe. If you do not wish to complete your application online, contact the Alaska Student Loan Commission at (907) 465-2962 to request a paper application.

PLEASE NOTE: Your lender may offer through its Web site a type of private educational loan that does not require school certification. A loan of this type may have a serious negative impact on your existing financial aid package and could result in a reduction of your federal loan(s) and/or work study. Please contact the Financial Aid Office before accepting one of these loans.

Private Loans

Many banks offer private education loan programs to help law students with college expenses. All private educational loan programs are based on creditworthiness. Some banks may require a co-signer for approval of loans if you have questionable credit.

Starting in mid-June 2008, you may apply for these loans online with your lender of choice.

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