Avoid debt if you can. If you can’t, borrow carefully and conservatively.
Loan Disbursement Dates:
Fall: September 17, 2013
Fall only second disbursement:October 21, 2013
Spring: February 11, 2014
Spring only second disbursement:March 17, 2014
Your actual refund will come from the Bursar’s Office two weeks after the disbursement dates listed. Refunds are processed through the BHC Money Card. For information, contact the Bursar’s Office.
The Federal Direct Stafford Loan is a low interest loan offered by the federal government to help students pay educational costs. Minimum enrollment is 6 credit hours per semester. The federal government withholds an origination fee when the loan is made. This money must be repaid.
Subsidized Direct Stafford Loan
This loan is based on financial need, so not everyone will qualify. The government pays the interest while the student is enrolled at least half time. A freshman (based on hours in their academic program) may borrow up to $3,500 per academic year. A sophomore may borrow up to $4,500 per academic year.
Unsubsidized Direct Stafford Loan
This loan is available to students who do not qualify for need-based loans or who do not qualify for the maximum loan limits under the Subsidized Direct Stafford Loan. The borrower is responsible for all interest that occurs during any enrollment, grace, deferment or forbearance period. You can choose to pay the interest or allow it to be added to the principal amount of the loan.
Please visit the Department of Education website for more information on applying for Direct Loans.
What’s the maximum student loan debt you can afford?
Use this table to estimate the maximum amount of student loan debt you can comfortably afford to repay based on your expected stating salary.
|Annual Income||Range of Maximum
Affordable Student Loan Debt
|Range of Affordable Monthly
Range of maximum affordable student loan debt assumes monthly payments do not exceed 8% to 10% of your gross monthly income, level payment over a term of 120 months and a constant interest rate of 6.8%.
Controlling education loan debt
Don’t leave college with excessive education debt. These tips may help you keep your student loan debt affordable.
- Borrow only what you need to cover the cost of education.
- Pay the interest on education loans as it comes due.
- Enroll in a tuition payment plan, which lets you pay in installments rather than a lump sum. Check with your school to learn if it offers a tuition payment plan.
- Budget to control expenses. Include out-of-pocket education costs as well as expenses for transportation, personal items and entertainment. Find ways to cut costs, such as buying used textbooks, using public or school-provided transportation, eating out less, and finding a roommate to share expenses. Always ask yourself before buying: “Is this something I really need?” If you don’t know, then you usually can skip the purchase.
- Consider working part-time. Plan your work schedule so your academic work will not suffer, and investigate campus work-study opportunities.
- Determine how much education debt you can afford to repay by estimating your future earnings. Try to keep monthly education loan payments to less than 8 to 10 percent of your expected gross monthly income.
- Complete your degree on time. You will accumulate more education debt if you extend your school enrollment.
- Keep a file of your education loan documents and other financial aid papers.
Return of Title IV Aid
If a recipient of Federal financial aid withdraws during a payment period (or a period of enrollment), the school must calculate the amount of aid the student earned through the date of last attendance. Unearned aid, including loans, must be returned to the Federal financial aid programs. See the Financial Aid Office for more details.
Loan Exit Counseling and Repayment
Student loan borrowers are required to complete Exit Counseling at the completion of enrollment, graduation or withdrawing, whichever occurs first. Exit Counseling is done online at www.nslds.ed.gov. Student loans enter repayment six months after ceasing enrollment in at least six credit hours.
As you plan for life after college, be sure to include preparations for paying back the student loans that helped finance your college experience.
Student Loan Default
Student loan default, or not repaying your student loan debt, carries serious consequences. When taking out a student loan, you want to exhaust all other possible funding methods and borrow conservatively. Students that do not repay their student loans become ineligible for any financial aid and loans in the future. Defaulted loans prevent students from renewing professional licenses. The federal government can collect n defaulted loans by confiscating federal tax refunds and wage garnishment. It is the student’s responsibility to always stay in contact with the loan servicing center to stay current with address and enrollment information to help avoid default.
The Language of Loans provides assistance in sorting out the unfamiliar terms used in borrowing a Direct Loan.