Financial Aid
Loans
The Federal Carl Perkins Student Loan Program
The Federal Carl Perkins Student Loan Program provides funds to institutions for students who need loans to meet their educational expenses. Application is through the normal financial aid application process at Washington College. Awards are determined by the College after a review of the applicant's financial need.
Repayment begins nine months after graduation or leaving school. Students may take up to ten years to pay back the loan. During the repayment period 5 percent interest per year is charged on the unpaid balance.
The Federal Stafford Loan Program
The Federal Stafford Loan Program enables students to borrow directly from a participating lender. This loan is guaranteed by a state or private nonprofit agency and by the federal government.
Beginning July 1, 2007 the maximum for freshmen is $3,500; for sophomores, $4,500; and for juniors and seniors, the maximum is $5,500. All borrowers must complete a FAFSA. The amount of the loan is based on demonstrated financial need, up to the maximum. Federal Stafford loans disbursed after July 1, 2006 have a fixed interest rate of 6.8%.
Repayment of subsidized Stafford Loans begins six months after leaving school, and borrowers may be allowed up to ten years to repay the loan. Students borrowing funds through the Unsubsidized Stafford Loan program are responsible for monthly interest payments while enrolled. Principal payment is deferred until six months after graduation. Consolidation programs, which may allow a longer repayment period, are also available.
The Federal Parent Loan for Undergraduate Students (PLUS)
The Federal Parent Loan for Undergraduate Students (PLUS) allows a parent to borrow funds to assist with payments for the current academic year. This program is not need-based and may be used in lieu of the family contribution. The interest rate for PLUS loans disbursed after July 1, 2006 is 8.50%. Repayment normally begins within 60 days of disbursement. Applications are available through one of the College's frequently used lenders or a participating lender of your choice.
Alternative/Private Student Loans
Many banks and lending institutions offer alternative educational loans that can be used to cover the portion of the total cost of education not covered by scholarships, grants, and other financial aid. These loans are offered by private lenders and there are no federal forms to complete. Eligibility for these loans often depends on the credit score of the borrower.
Some families turn to alternative loans when the federal loans do not provide enough money or when they need more flexible payment options. For example, the parents might want to defer repayment until the student graduates, an option not currently available with Federal Parent PLUS loans.
Because most private loans cost more than the education loans offered by the federal government, and most have variable interest rates tied to your credit score, we recommend that families research the various private loans before electing to use this payment option.
Washington College does not partner with any particular lenders. However, the Office of Student Aid staff would be happy to help answer questions you may have related to alternative/private loans.
Scholarships & Interest Free Loans for Maryland Residents
The Central Scholarship Bureau is offering interest-free loans to permanent residents across Maryland. Selection is based on need and merit. The Central Scholarship Bureau awarded a record $600,000 in interest-free loans and $300,000 in scholarships this school year. Over 450 students applied and 181 received loans or grants. Changes made to the program in the past year have increased the number of students eligible and the amount they could receive. Undergraduate and graduate students are eligible. There's no age limit. Recipients range from age 17 to 61.
To qualify for a loan, you must apply for federal financial aid (FAFSA). You need to have a grade-point average of at least 2.0 on a scale of 4. And you must have a co-signer for the loan so that if you don't repay it, the co-signer would be on the hook.
Central Scholarship will begin accepting applications for the 2008-2009 academic year in January. Applications must be submitted online between January 2, 2008 and May 31, 2008. All supporting documents must be postmarked by no later than May 31, 2008. For more information and details check out the nonprofit's Web site at www.centralsb.org.
You may contact the Financial Aid office by phone at 410-778-7214 or by e-mail at fa_office@washcoll.edu.
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