Mount Vernon Nazarene University

Mount Vernon Nazarene University

Loan Programs

Federal Stafford Loans

The first step in obtaining a Federal Stafford Loan is completing the Free Application for Federal Student Aid (FAFSA). The results of the FAFSA, along with the cost of attendance and other financial aid received are all considered when determining award amounts. Aggregate undergraduate Stafford Loan borrowing may not exceed $31,000 for dependent students and $57,500 for independent students. The annual Stafford Loan limits are presented below.

Federal Stafford Loan Limits

Dependent Students

 

Subsidized
(or Unsubsidized)

Unsubsidized

Freshman

$3,500

$2,000

Sophomore

$4,500

$2,000

Junior/Senior

$5,500

$2,000

Aggregate

$31,000
($23,000 Subsidized)

 

Independent Students

 

Subsidized
(or unsubsidized)

Unsubsidized

Freshman

$3,500

$6,000

Sophomore

$4,500

$6,000

Junior/Senior

$5,500

$7,000

Aggregate

$57,500
($23,000 Subsidized)

 

The Stafford Subsidized Loan interest rate for the 2012-13 academic year beginning July 1, 2012 is a fixed 6.8%. The Stafford Unsubsidized Loan interest rate for the 2012-13 academic year beginning July 1, 2012 is a fixed 6.8%. Loans disbursed prior to July 1, 2007 have a variable rate, which is adjusted each year on July 1, but capped at 8.25%. There will be a .5% origination fee that will reduce the amount applied to the student’s account.

The federal government pays the interest on the subsidized Federal Stafford Loan while the student is enrolled at least half-time and during the 6 month grace period.

Unsubsidized Federal Stafford Loans accrue interest from the day the loan is disbursed until the loan is paid in full. Students may pay the interest during enrollment or allow it to be capitalized.

Repayment of Stafford Loans begins six months after the student graduates, leaves school, or drops below half-time enrollment. The standard repayment plan is ten years, but other repayment plans are available.

At MVNU, students will be awarded their maximum eligibility for Federal Stafford Loans. However, loans will not be posted to any student account until all necessary paperwork is submitted and may be canceled if not completed early in the semester.

Federal Parent Loans for Undergraduate Students (PLUS)

Each year parents may borrow up to the difference between the cost of education and the amount of financial aid received by the student. The PLUS interest rate for the 2011-12 academic year beginning July 1, 2011 is fixed at 7.9%. There is a 4% origination fee that will reduce the amount applied to the student’s account.

Dependent students whose parents are unable to obtain a parent PLUS Loan may have increased loan limits.

Federal Perkins Loans

Federal Perkins Loans are federal need-based loan funds reserved for the "neediest" students. Loans are awarded on the basis of financial need as determined by the student’s Free Application for Federal Student Aid (FASFA) analysis. Additional paperwork is necessary to secure these funds. Students who fail to complete loan paperwork early in the semester risk cancelation of the award.

Repayments begin nine (9) months after the student drops to less than half-time or leaves school. The interest rate then becomes 5% per year and, depending upon the loan amount outstanding, the borrower has up to ten (10) years to repay the loan.

Certain cancelation and postponement provisions are provided, and are detailed on the Federal Perkins Loan Promissory Note. For specific questions, please contact the University’s Student Accounts Office.

Schell Foundation Loans

The Schell Foundation provides a limited number of loans to qualified students from Ohio and adjacent states. Contact the SFS Office for additional details.