Part of a student‘s financial aid package from Heidelberg will include a student loan payable after graduation. Student loans are part of a student‘s self-help portion of their award. The two loan programs available to Heidelberg students are the Federal Perkins Loan and the William D. Ford Direct Loan Program. Parents also have a loan program available to them to help meet the cost of higher education, the Direct PLUS Loan.
Federal Perkins Loan
The Federal Perkins Loan is a low interest (5%) loan to help students with exceptional need. Heidelberg is the lender. The school makes the loan with federal funds and a shared contribution. Repayment begins and interest accrues nine months after graduation. Payment is made quarterly. Freshman and sophomore students receive priority with amounts varying up to $2,000 per year.
To complete your Perkins paperwork:
- Perkins Entrance Interview PDF
- Perkins Information Disclosure Form PDF
- Perkins Master Promissory Note PDF
William D. Ford Direct Loan Program
Direct loans are guaranteed, low interest loans for students. The lender is the Department of Education.
There are two types of Direct Loans: subsidized and unsubsidized. A Direct subsidized loan is need-based. No interest is charged while the student is enrolled at least half-time. Beginning with loans made on or after July 1, 2012, the six month grace period subsidy will be eliminated. The interest rate will increase from 3.4% to 6.8% for all new loans made on or after July 1, 2012. A Direct unsubsidized loan is not based on financial need and interest is charged during the enrollment period. The interest rate is fixed at 6.8%.
Undergraduate Annual Loan Limits for Direct Subsidized and Unsubsidized Loans:
| Dependent | Independent | |
| First Year (freshman) | $5,500 (maximum $3,500 subsidized) | $9,500 (maximum $3,500 subsidized) |
| Second Year (sophomore) | $6,500 (maximum $4,500 subsidized) | $10,500 (maximum $4,500 subsidized) |
| Third Year (junior and beyond) | $7,500 (maximum $5,500 subsidized) | $12,500 (maximum $5,500 subsidized) |
Aggregate Loan Limits:
| Dependent | Independent | |
| Undergraduate | $31,000 (maximum $23,000 subsidized) | $57,500 (maximum $23,000 subsidized) |
You can complete the Direct Loan paperwork here:
Federal Direct Stafford Loan Entrance Counseling and Master Promissory Note
Federal Direct Stafford Loan Exit Counseling
Direct Loan repayment incentives have been eliminated as of July 1, 2012.
Please note, federal loan money is going to be more expensive for the borrower beginning July 1, 2012 for the 2012-2013 school year. Please keep in mind, however, the benefits that are still part of the federal student loan program:
- Congressionally mandated deferment and forbearance periods for qualifying borrowers.
- Multiple repayment plan options to help make repayment more affordable.
- Loan forgiveness for qualifying borrowers.
- Loan discharge due to death or permanent disability. This means if something happens to you along these lines the debt is forgiven and no one is responsible for it.
- Fixed interest rate that will not increase if rates in the general economy increase in the future.
- Tax deductions for loan interest paid to qualifying borrowers.
Direct PLUS Loan for Parents
The Direct PLUS Loan for Parents is a loan option available to parents with good credit. Parents can borrow up to the difference in the student's cost of attendance less any financial aid. The interest rate is a fixed 7.9% with payment beginning 60 days after the loan is fully disbursed. A payment delay may be requested while the student is enrolled at least half-time.
Begin to apply for a Direct PLUS Loan, Direct PLUS Master Promissory Note
For more information about the Direct Loan Program, visit www.direct.ed.gov
Private Student Alternative Loans
Education Loans help bridge the gap between the actual cost of education and the limited amount the government allows you to borrow in its programs. Private loans are offered by private lenders and there are no federal forms to complete. Eligibility for private student loans often depends on your credit score.
It is better to apply for a private loan with a cosigner even if you could qualify for a loan on your own. Just applying with a cosigner usually results in a slightly lower rate, as such loans are not as risky for the lender. Moreover, the interest rates and fees are usually based on the higher of the two credit scores. So if your cosigner has a much better credit score than you, it could result in a much lower interest rate.
For more information or to apply for a loan visit Alternative Loan Comparison and Application
Still have questions? Please visit the Student Loan FAQs page for more information.