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 a total of $19,000 of Stafford Loan over their four years ($3,500 in the freshman year, $4,500 in the sophomore year, and $5,500 both in the junior and senior years). Eligible students may also borrow up to $4,000 of Perkins Loan per year ($20,000 aggregate). Students are able to select a lender of their choice for each of the loans they use.
In order to help students and families navigate the loan process we mailed a Lender Selection memo (PDF/68KB) to all students. We asked that students return the Lender Selection Form (PDF/23KB) that was enclosed with the memo to our office by July 16th to insure that funds will be available at the beginning of the semester. This form indicates the student and parents’ choice of lender. We have developed two worksheets to help students and their families organize their loan information. The first is the Federal Family Education Loan Programs (FFELP) Worksheet (PDF/53KB) which includes the Stafford loans and PLUS loan. The other is the Alternative Student Loan Worksheet (PDF/62KB).
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, and there are also 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 Helpful 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 $20,000 over four 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 percent. The Office of Financial Aid awards this loan which is a revolving federal loan fund. The amount of Perkins Loan a student can borrow may vary from year to year, depending on available funding.
Alternative Loan Programs
Saint Anselm works with any loan company the student wishes. 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 higher than that of federal student loans. For assistance in estimating the Alternative Student Loan amount use the Budget Worksheet found on the Helpful Resources page.