Loans Information

Federal Family Education Loan Program (FFELP)

Subsidized Loan (Dependent Student)

The Federal Stafford Loan Subsidized is a need-based loan designed to assist students in making loans directly from banks, credit unions, savings and loan associations and other participating lenders. Amount of loans are based upon post-secondary institutions recommendations, but the maximum amounts available to borrow per academic year is $5500 for the first full year of undergraduate study; $6500 for the second full year of undergraduate study; the third and fourth full year, $7500. Repayment begins six months after the borrower leaves school or drops below halftime. Repayment is made over a period of ten years with a minimum payment of $50 per month.

Unsubsidized Loan (Dependent Student)

Effective October 1, 1992, this new program is for middle-income borrowers. All students, regardless of income, who meet student eligibility requirements may apply. The amount of the loan is determined by subtracting any estimated financial assistance from the cost of attendance. Annual and aggregate limits are the same as Federal Stafford Loan. Repayment of Principal begins 6 months after the month the student ceases to be at least a half-time student. All unsubsidized loans can be used to replace family contribution.

Subsidized / Unsubsidized and Additional Unsubsidized (Independent Students)

Unlike dependent students, independent students may borrow the Subsidized / Unsubsidized and an additional unsubsidized loan. Annual amount for Freshmen, $9500; Sophmore, $10,500; Junior/Senior, $12,500. Graduate students may borrow up to $20,500.

Parent Loan for Undergraduate Students (PLUS)

The Plus Loan Program provides educational loans to parents on behalf of their dependent son or daughter to help pay for the cost of attending eligible post-secondary institutions. The borrower must be the natural parent, adoptive parent, or legal guardian of a dependent student. Repayment must begin after the funds are disbursed. The parent must make arrangements with the lender to begin installment payments, including interest at a variable rate and deferments. Lenders perform credit checks.

Service Cancelable Loan

The State Direct Student Loan Program provides service cancelable loan assistance to Georgia students enrolled in approved fields of study in which personnel shortages exist in the state. (Fields of study and eligibility requirements are subject to change.) The Georgia Student Finance Authority (GSFA) administers this program. GSFA makes loans to students who are subject to the same eligibility, interest and repayment requirements as other loans made to students by commercial lenders and guaranteed by Georgia Higher Education Assistance Corporation. Each school must receive an appropriation from the state to participate. See Financial Aid Counselor for eligibility and when and how to apply.

Teacher Loan Forgiveness

Students may qualify for loan forgiveness only if they had no outstanding balance on a loan (Subsidized or Unsubsidized) on October 1, 1998, in the amount of $17,500. Student must be full time in an elementary or secondary school as a highly qualified special education, mathematics, or science teacher for student with

EXAMPLE OF TYPICAL STAFFORD LOAN REPAYMENTS

Initial Debt When You Enter Repayment $40,000
Over a 10 year period, total repayment $55,239
Payment Per Month $460

Students are encouraged to go to www.mappingyourfuture.org and use the calculator to determine how they will be affected by the amount borrowed.