- Financial Aid
- Cost & Payment
- Application Process
- Types of Aid
- Loan Programs
- Scholarships
- Student Employment
- Forms
- FAQ
- The Fine Print
- Admission
FINANCIAL AID DePauw University
mail P.O. Box 37
Greencastle, IN
46135-0037
Work(800) 447-2495(765) 658 4030
FAX:fax (765) 658-4137
ttps://www.depauw.edu/e/fa/borrow/Financial Aid
FFELP
Federal Family Education Loan Program
The FFELP is the largest single source of federal aid for students pursuing a higher education. This program has two main sources of funding: Federal Stafford Loans for students and Federal PLUS Loans for parents of dependent students. We encourage you to read carefully all the information provided about the Federal Family Education Loan Program (FFELP) before proceeding with the application process.
The application link is available at the bottom of the page.
General Requirements for the Federal Stafford Loan
- Student borrowers applying for a Federal Stafford Loan must be U.S. citizens or eligible non-citizens.
- Students must be enrolled at least halftime in a degree seeking program.
- Students applying for a Stafford Loan must complete the Free Application for Federal Student Aid (FAFSA) each year.
Subsidized Federal Stafford Loans
Students that meet certain financial need criteria may qualify for a Subsidized Federal Stafford Loan. The federal government pays the interest on the subsidized loan while students are enrolled at least half time, during the six-month grace period, and when they qualify for an authorized deferment.
Unsubsidized Federal Stafford Loans
Students who do not qualify for a Subsidized Stafford Loan may be eligible for an Unsubsidized Stafford Loan. The federal government does not pay the interest on an unsubsidized loan. Students have the option of paying the interest while they are in school, or they can choose to have the interest added to their principal balance through a process called capitalization.
Federal Federal Stafford Annual Loan Limits
| Dependent Students | Independent Students | Independent Students | ||
|---|---|---|---|---|
| Annual Loan Limit | Maximum Subsidy | Maximum Total | ||
| Freshman | $3,500 | $3,500 | $7,500 | |
| Sophomore* | $4,500 | $4,500 | $8,500 | |
| Junior/Senior | $5,500 | $5,500 | $10,500 | |
| *The listed amounts begin with the 2007-2008 academic year. Beginning in 2008-2009, students have an additional $2,000 in unsubsidized federal Stafford loan funds available. | ||||
| Note: Dependent students whose parent has been denied a PLUS Loan or independent students may be eligible for additional Unsubsidized Stafford Loan. Contact the Office of Financial Aid for details. | ||||
Interest rate
Beginning with loans disbursed on or after July 1, 2006 the interest rate on all Stafford loans will be fixed at 6.80%. For loans disbursed prior to July 1, 2006, the interest rate is variable and capped at 8.25%.
Payment terms for a Stafford Loan
Your loan payments may be deferred until six months after graduation. You typically have 10 years to pay off your Stafford loan. There are no prepayment penalties on a Stafford loan.
Federal PLUS Loans
- If students are dependent on their parents, their parents may qualify for a Federal PLUS loan. The PLUS loan is available without regard to financial need. However, the lender is required to determine whether the borrowing parent has a good credit history. The borrower must be the natural parent, adoptive parent or stepparent of the student.
- Parents may borrow up to the full estimated cost of attendance, including tuition, room and board, books, transportation and additional expenses, minus any other financial aid awarded to the student.
- Repayment begins 60 days after the loan is fully disbursed. Parent borrowers are required to make monthly payments and typically have 10 years to repay the loan. There are no prepayment penalties on a PLUS Loan.
Guarantee and Origination Fees
The Guarantor may charge a guarantee fee of up to 1 percent of the total loan amount, and the Lender may charge an origination fee of up to 3 percent.
Interest Rates
Effective July 1, 2006 the fixed interest rate on the Federal PLUS Loan will be 8.50 percent. For loans disbursed prior to July 1, 2006, the interest rate is variable and capped at 9%.
Disbursement of the loans
- Both Federal Stafford Loans and Federal PLUS Loans will be paid in two disbursements: The first at the beginning of the loan period and the second halfway through the loan period.
- In most cases the funds will be disbursed to the school electronically (EFT). Proceeds will be applied to any outstanding educational charges including tuition, fees, room and board. The financial aid office will notify the borrower when the disbursement is received. If there is a credit balance DePauw University will issue a refund to the borrower.
- Some disbursements may be made by co-payable check to the borrower and DePauw University. The borrower will be contacted to endorse the check before the student account can be credited.
- Repeat Borrowers of a Federal PLUS Loan: If you previously had a Federal PLUS Loan for your student attending DePauw University, we recommend that you keep the same lender.
APPLY NOW!
