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Loans

We view college loans as one part of an investment in a student's future. Listed below are some of the more popular loans available to Saint Anselm students and information on how to select the appropriate lender.

Most Saint Anselm students will borrow from the federal student loan programs. Approximately 77% of the 2008 graduating class borrowed an average of $18,700 of federal student loans (Stafford and Perkins Loans) over their four years. The yearly loan limit for Stafford Loan is $3,500 in the freshman year, $4,500 in the sophomore year, and $5,500 both in the junior and senior years. In May 2008 HR5715 passed and allowed students the eligibility to borrow an additional $2,000 of Unsubsidized Stafford Loan per year. Eligible students may also borrow up to $5,500 of Perkins Loan per year. However, due to limited funds available, eligible students are awarded less than the federal maximum eligibility.

The lender for the Federal Direct Stafford Loan Program and the parent PLUS loan program is the U.S. Department of Education.

Students are able to select a lender of their choice for alternative loans. To choose a lender, we recommend that you begin your research with your existing bank followed by state agencies or other larger banking institutions. In order for the college to certify a loan with your selection of lender, the borrower must complete a Lender Selection Form.

Please see the Resources page for more information on the loan application process.

Subsidized and Unsubsidized Stafford Loans

The federal Stafford Loan offers a low-cost resource that is federally protected, unlike alternative loans. There is no debt-to-income ratio required. A student may choose repayment options that meet their individual needs, including deferment options. We strongly recommend that a student take advantage of the federal loans before opting for alternative loans to save money in interest payments.

The federal government pays the interest on a subsidized loan while a student is enrolled, but does not do so on an unsubsidized loan. If a student receives an unsubsidized loan, they are responsible for interest during the in-school and deferment periods. The student may choose not to pay the interest while in school; however, capitalizing the interest will increase the overall loan principal in repayment.

PLUS Loan (Parent Loan for Undergraduate Students)

The PLUS Loan is a federally guaranteed, low-interest loan for parents of dependent, undergraduate students. Parents may borrow up to the cost of their student's attendance minus any other financial aid for which the student is eligible. If a parent desires this resource, the Office of Financial Aid will include this loan as part of the student's financial resources. For assistance in estimating the PLUS Loan amount use the Budget Worksheet found on the Resources page.

Perkins Loans

Saint Anselm administers a limited number of Perkins Loans to students with exceptional financial need in order to supplement a student's Stafford Loan eligibility. A student may borrow up to $27,500 over five years in the Federal Perkins Loan program. Repayment of the loan begins nine months after the student leaves college or graduates and does not accrue interest until that time. The interest rate is fixed at 5%. The Federal Perkins Loan is a revolving federal loan fund. The amount of Perkins Loan a qualifying student can borrow may vary from year to year. A typical award ranges between $1,500 to $2,500 per year depending on available funding.

Alternative Loan Programs

Saint Anselm works with any participating lender. If a student chooses an alternative loan we recommend that the student take that loan in the student's name with a parent co-signer (generally required freshman year) to obtain the best interest rate. Eligibility for these loans depends on the borrower and co-signers credit-worthiness. Families are encouraged to review all options carefully before considering alternative loans, as the interest rate is much higher than that of federal student loans. For assistance in estimating the Alternative Student Loan amount use the Budget Worksheet found on the Resources page.