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Loans for Returning Students

Loans for Returning Students

Quick Links for Loans

Federal Stafford Loan Application & Promissory Note

Federal Parent PLUS Loan Program

Undergraduate Students-Loan Entrance Counseling

Graduate Students-Loan Entrance Counseling

Undergraduate Students-Loan Exit Counseling

Graduate Students-Loan Exit Counseling

Your Loan History (Federal Student Loans)

Loans provide an opportunity for families to spread out college costs over a repayment period. Most student loans provide an opportunity for deferment of principal payment until after graduation or until the student ceases to be enrolled at least half time in a degree-seeking program. Most parent loans require payment while the student is in college.

There are a number of loan programs which can help you meet your expenses at Bethune-Cookman. Education loans come in three major categories: student loans (for example, the Stafford Loan), parent loans (such as the Parent PLUS loan), and private student loans (also called alternative student loans).  To begin the process, students must complete the Free Application for Federal Student Aid (FAFSA) application, which determines the eligibility for student loans. The student is always the applicant/borrower, and annual maximum loan amounts apply.

Federal Stafford Loans

The main federal loan for students is called the Stafford Loan and has two variations.

Federal Loan Stafford Application & Master Promissory Note

• Federal Direct Student Loan Program (FDSLP) loans administered by the university are provided by the US government directly to students and their parents.

There are two types of Stafford Loans:

• Stafford Subsidized Loan

This is a low-interest loan made to students by the federal government "directly" or by a private lender (bank, credit union, etc.). Eligibility for a "subsidized" Federal Stafford Loan is based on financial need as determined by a federally mandated formula. "Subsidized" means that the federal government will pay the interest on the loan while a student is in school and during specified deferments.

Eligible freshmen may borrow up to $3,500 per year, sophomores up to 4,500; and juniors and seniors may borrow up to $5,500 per year. The maximum allowable undergraduate indebtedness over five years is $23,000.

Stafford Loans have a fixed interest rate of 3.86% for loans with a first disbursement after July 1, 2013.

Federal Stafford Loans are disbursed in two installments: one in the fall semester and one in the spring semester, after enrollment for each semester. When the loan is disbursed, federally required origination fee (which is used to offset administrative costs of the program) is DEDUCTED from the loan by the government or lender.  For example, a loan of $3,500 is disbursed in two installments of $1,732 each, totaling $3,464 after the fees are deducted.

Repayment begins six months after the borrower's last enrollment on at least a half-time basis.

• Stafford Unsubsidized Loan

A Federal Stafford Unsubsidized Loan is a low interest loan made to students by the Federal government "directly" or by a private lender (bank, credit union, etc.). Under this program, the student borrower (and not the Federal government) pays the interest that accrues on the loan while the student is in school. Eligibility for a Federal Stafford Unsubsidized loan is determined by the Financial Aid Office using a federally mandated formula.

Eligible dependent freshmen may borrow up to $3,500 per year, sophomores up to $4,500; juniors and seniors may borrow up to $5,500 per year, less any amount of subsidized Stafford Loan eligibility. A student who shows need for only part of an annual subsidized Federal Direct/Stafford Loan may borrow the remainder through an unsubsidized loan. The maximum allowable loan undergraduate indebtedness is $23,000.

Stafford Loans have a fixed interest rate of 3.86% for loans with a first disbursement after July 1, 2013.

Federal Stafford Loans are disbursed in two installments: one in the fall semester and one in the spring semester after enrollment for each semester. When the loan is disbursed, federally required loan fees (used to offset administrative costs of the program) are DEDUCTED from the loan by the government or lender.  For example, a loan of $2000 is disbursed in two installments of $990 each, totaling $1980 after the fees are deducted.

Federal PLUS Loan or Federal Direct PLUS Loan (Parent's Loan)

Federal Parent PLUS Loan Program

The Federal PLUS Loan is a federally insured loan made by private lenders or "directly" by the federal government. Repayment of principal and interest begins 60 days after the loan proceeds have been disbursed. Eligibility for this loan is based on credit-worthiness as determined by the lender.

The interest rate for the Federal PLUS Loan varies annually (a new rate is effective each July 1), and the rate is based on the 52-week U. S. Treasury Bill rate plus 3.10% not to exceed 9%.

Federal PLUS Loans are disbursed to the college in two installments: one in the fall semester and one in the spring semester, after enrollment for each semester. When the loan is disbursed, federally required loan fees of 4% (used to offset administrative costs of the program) are deducted from the loan by the government or lender. Parents of dependent students may borrow up to the cost of education minus any financial aid. These loans, in combination with all other aid (including loans) may not exceed the educational cost. Financial need is not an eligibility factor.

Entrance/Exit Loan Counseling

• Taking on a loan is a huge responsibility. Therefore it is pertinent that students must understand their rights and responsibilities regarding the repayment of these types of loans.  To accomplish this goal all students must complete  Loan Entrance Counseling prior to the first loan disbursement. Upon graduation, withdrawal, or enrollment of less than half-time, all students are required to complete Loan Exit Counseling.

Private Alternative Student Loans

Private loans help bridge the gap between your expenses and the limited amount of loans the government allows you to borrow from its programs. These loans are offered my private lenders and often depend on your credit score. Apply with a cosigner to receive the lowest interest possible. Cosigners may be released after a certain number of on-time payments. Below are a few lenders you may want to contact. Starting with the 2009-2010 academic year Salle Mae has discontinued the Signature Loan and now uses the Sallie Mae Smart Option Loan. With the Smart Option loan students will pay the interest on the loan monthly while enrolled in school, instead of deferring it until after graduation. (Note Fifth Third Bank will also implement the Smart Option Loan)

Lender Information (You Must APPLY for these Loans)

Private (educational) Lenders:

www.salliemae.com  (SMART loan)            1-888-272-5543

www.discoverstudentloans.com               1-877-728-3030

www.pnconcampus.com                        1-800-762-1001

www.53.com  (Fifth Third Bank)             1-800-222-7192

www.wellsfargo.com/student                 1-800-378-5526

http://www.citizensbank.com/TruFitStudent/ 1-800-922-999

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Bethune-Cookman University Raised $2.53M at Tuesday night's Award Gala

Bethune-Cookman University hosted nearly 500 guests at its annual Mary McLeod Bethune Awards Gala on Tonight at the Daytona International Speedway 500 Club (1801 W International Speedway Blvd, Daytona Beach, FL 32114). The annual affair honored six awardees who have contributed to the livelihood of the community and the University.

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