Loans
All loans except the PLUS Loan are borrowed in the student’s name and are the student’s responsibility. Student must be enrolled as follows in order to be eligible to receive federal student loans:
Undergraduate students in at least 6 credit hours
Graduate students in at least 3 credit hours
Not repaying a student loan can seriously damage a student’s credit rating. Defaulted loans also endanger the availability of future financial aid at Allen University.
Federal Loans
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The Federal Subsidized Direct Loans are based on demonstrated financial need. The interest and payments are deferred while the student is enrolled. Repayment begins 6 months after the student ceases to be enrolled at least a half-time. A student can borrow up to $3, 500 for as a freshman, $4,500 as a sophomore, and $5,500 as a junior or senior. A student can borrow an aggregate of $23,000 for his or her undergraduate study. A 1.057% fee is deducted from the loan amount before the funds are sent to the school. The current fixed interest rate for the Federal Subsidized Loan is 4.99%.
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The Federal Unsubdued Direct Loans are non-need-based loans. Interest on unsubsidized Direct loans accrues while the student is enrolled. Repayment begins 6 months after the student ceases to be enrolled at least half-time. If a dependent student does not qualify for a subsidized Direct loan, the dependent student may borrow from this program at the same loan limits as the Federal Subsidized Direct Loans. An independent or qualified dependent freshman and sophomore student may borrow up to $6,000 per academic year. The undergraduate loan limit for an independent or qualifying dependent student who is a junior or senior is $7,000 per academic year. Graduate students are eligible for up to $20,500 per year, not to exceed the Cost of Attendance for Allen University. A 1.057% fee is deducted from the loan amount before the funds are sent to the school. The current fixed interest rate for the Federal Unsubsidized Loan for undergraduate students is 4.99% and for graduate students it is 6.54%.
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The Federal Parent PLUS Loans are loans taken out by parents of dependent undergraduate students, enrolled at least half-time, to help pay for their child’s college expenses. Parents are responsible for repaying Parent PLUS loans. PLUS loans are in addition to the loans taken out by your child, and your PLUS loan will cover the entire cost of tuition, room and board, and other school-related expenses that your child’s financial aid doesn’t cover. A 4.228% fee is deducted from the loan amount before the funds are sent to the school. The current fixed interest rate for the Federal Parent PLUS Loan is 7.54%. Parents cannot borrow more than the cost of attendance for the child’s education minus other financial aid received.
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The Federal Graduate Plus loans are federal student loans available to students attending graduate school and professional school. A 4.228% fee is deducted from the loan amount before the funds are sent to the school. The current fixed interest rate for the Federal Graduate PLUS Loan is 7.54%.
Undergraduate Loan Grade Level is determined by the total number of semester hours earned at Allen plus any hours accepted in transfer.
| Level | Number of Hours Earned | Classification |
|---|---|---|
| 1 | ||
| 2 | ||
| 3 | ||
| 4 | ||
| 5 |
For a single semester, your loan eligibility is no more than half the annual amount.
The total outstanding loan debt you can accrue from the federal student loan program is:
$31,000 as a dependent undergraduate student (only $23,000 of this can be subsidized)
$57,500 as an independent undergraduate student (only $23,000 of this amount can be subsidized)
$138,500 as a graduate student.
Alternative Loans
Alternative loans are private loans offered through banks and other organizations. They are non-federal loans may be available to students who do not qualify for federal student loans or those who need additional loan assistance beyond the federal loan maximums. In order to receive a private student loan or alternative loan, the student must apply directly with the lender. The Office of Student Financial Aid will receive the information directly from the lender. Be sure to sign all disclosure notices with the lender. You will receive an email when your award has been finalized. Please allow a minimum of two weeks to process the alternative loan.
Online Loan Counseling
Loan Entrance Counseling: If you are a first-time loan borrower and are interested in taking out student loans as Allen University, you are required to complete a Loan Entrance Counseling.
Direct Loan Entrance Counseling
Graduate PLUS Loan Entrance Counseling: If you are a first-time Graduate PLUS loan borrower and are interested in taking out student loans as Allen University, you are required to complete a Graduate PLUS Loan Entrance Counseling.
Direct Graduate PLUS Loan Entrance Counseling
Loan Exit Counseling: When you separate from Allen University, you will need to complete the Loan Exit Counseling. Separation occurs if you withdraw or graduate from Allen University.
Borrowers Rights & Responsibilities
When a student takes out a student loan, he/she has certain rights and responsibilities. The borrower has the right to receive the following information before the first loan disbursement:
The full amount of the loan
The interest rates
When the borrower must start repaying the loan
The effect borrowing will have on the students’ eligibility for other types of financial aid.
A complete list of any charges the student must pay (loan fees) and information on how those charges are collected
The yearly and total amounts the student can borrow
The maximum repayment periods and the minimum repayment amount
An explanation of default and its consequences
An explanation of available options for consolidating ore refinancing the student loan
A statement that the student can prepay the loan at any time without penalty
The borrower has the right to receive the following information before leaving school:
The amount of the student’s total debt (principal and estimated interest), what the student’s interest rate is, and the total interest charges on the loan(s).
A loan repayment schedule that lets the student know when his/her first payment is due, the number and frequency of payments, and the amount of each payment
The fees the student should expect during the repayment period, such as late charges and collection or litigation costs if delinquent or in default
An explanation of available options for consolidating or refinancing the student’s loan
A statement that the student can repay his/her loan without penalty at any time
The borrower has the responsibility to do the following:
Understand that by singing the promissory note, the student is agreeing to repay the loan according to the terms of the note
Make payments on the student loan even if the student does not receive a bill or repayment notice
If the student applies for a deferment or forbearance, he/she must still continue to make payments until notification that the request has been granted
Notify the appropriate representative (institution, agency, or servicer) that manages the student’s loan when the student graduates, withdraws from school, or drops below half-time status; changes to his/her name, address, or Social Security Number, or transfer to another institution
Receive entrance counseling before being given the first loan disbursement, and to receive exit consoling before leaving school
Loan Instructions : Instructions for Completing Federal Loans for Parents & Students CLICK HERE for GRADUATES