Widener University

Federal Stafford Loan
The Federal Stafford Loan is a low interest federal loan funded by banks and other lenders. The interest rate is 6.0 percent for undergraduate subsidized loans and 6.8 percent for unsubsidized loans disbursed between July 1, 2008 and June 30, 2009 .  Depending on need and other aid, the interest that accrues on the loan can be subsidized or unsubsidized. If the student has a demonstrated need, the federal government will pay the interest for the student while he/she is enrolled in school on at least a half-time basis and during grace and deferment periods. 

American Education Services (AES) offers Keystone BEST loans to Pennsylvania resident students and to students attending Pennsylvania schools.  In collaboration with Pennsylvania lenders, Keystone BEST loans are offered as reduced or no fee loans to the borrower.  Widener University recommends our students take advantage of these loans offered by any of the participating Keystone BEST lenders.  To determine our recommended lender lists, Widener University issued a national Request for Information to education lenders and has focused on loan rates and terms and a strong commitment to customer service.

Widener University recommends the following Keystone BEST Federal Stafford loan lenders for 2008-2009 (Lenders may change their fee structures and benefits at any time):

     
 * Borrowers are free to select any lender they chose, including a lender not on the lender list.  The order lenders are listed is not intended nor does it reflect the University's position with respect to any lender. Fees indicated are for loans disbursed on or after July 1, 2008.   

Eligibility
Degree-seeking students who are enrolled at least half time may receive Federal Stafford Loan funding as long as they meet the general eligibility requirements.

Borrowing Limits
As a general rule, the following grade-level maximums apply:

^a For all students. The additional $2,000 in unsubsidized funding is new for 2008-2009.
^b For independent students and for dependent students whose parents are rejected for PLUS Loans.
^c Nondegree-seeking students who are enrolled at least half time in a teacher certification program or in coursework required to be accepted into a graduate or professional program may borrow at the senior level as a fifth-year undergraduate. Students who think they may qualify for this exception should contact Student Financial Services.

There are limits as to how much Federal Stafford loan money can be borrowed.  Undergraduate students are limited to $23,000.00 in subsidized loans and, if they qualify for the additional unsubsidized, another $31,000.00 in unsubsidized loans. 

Cost of Borrowing and Repayment
A maximum of two percent in guarantee and origination fees may be deducted from the loan when it is disbursed depending on the lender you choose. Loan repayment begins six months after a student ceases to be enrolled on at least a half-time basis. The repayment term is usually 10 years, and the minimum monthly payment is $50.

Federal Parent Loan for Undergraduate Students (PLUS)
The PLUS loan enables parents with good credit histories to borrow funds to pay the educational expenses of each dependent undergraduate child enrolled at least half time. The yearly limit on a PLUS is equal to the cost of attendance minus any other financial aid.

The PLUS has a fixed interest rate of 8.5 percent. A maximum origination fee of three percent will be deducted from each loan disbursement. The first payment of interest and principal is generally due 60 days after the loan is fully disbursed. *Beginning July 1, 2008 parent borrowers can choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at leat half-time.  Accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly.

To determine our recommended lender lists, Widener University issued a national Request for Information to education lenders and has focused on loan rates and terms and a strong commitment to customer service.  You are not required to borrow through Widener's preferred lenders, although it would be advisable to research any incentives offered thoroughly before choosing another lender.  You can visit the AES website at www.aessuccess.org for more information on Federal PLUS loans and to apply.  You will need to indicate the amount you would like to borrow as part of the process. You can electronically sign your application with the same PIN number you use for the Free Application for Federal Student Aid (FAFSA) process.

Widener University recommends the following PLUS loan lenders for 2008-2009 (Lenders may change their fee structures and benefits at any time):

* Borrowers are free to select any lender they chose, including a lender not on the lender list.  The order in which lenders are listed is not intended nor does it reflect the University's position with respect to any lender. Fees indicated are for loans disbursed on or after July 1, 2008.

Federal Perkins Loan
A Federal Perkins Loan is a need-based federal loan administered by Widener University. It is a subsidized loan, meaning that no interest accrues while you are in school. You also receive a nine-month grace period that starts as soon as you graduate, withdraw, or enroll less than half time at Widener. The Federal Perkins Loan carries a five percent interest rate and the minimum monthly payment will be at least $40.

If you are eligible for a Perkins Loan, you will be contacted by the Perkins Loan Office to schedule a Perkins Loan Entrance Interview and to sign your promissory note. Upon leaving Widener, you must attend an Exit Interview where your rights and responsibilities will be reviewed and you will receive further information on repayment. For more information, contact the Perkins Loan Office at 610-499-4172.

Private Alternative Loans
Private education loan funding is available if additional assistance is needed after federal loan sources have been exhausted.  Non-need-based private loan programs are offered by a variety of lenders and organizations. The interest rates, fees, repayment terms and eligibility requirements of these loan programs vary widely and are determined by each lenders specific guidelines. Students are encouraged to carefully review the provisions of the loan to determine which loan programs fit their needs before incurring additional obligations.  Most lenders have very informative websites and we encourage students to research carefully.   Students are free to select any lender they choose, including lenders not listed below.  All private alternative loans are based on credit worthiness and often require co-signers.  For most loans, interest will continue to accrue from the date of disbursement and interest payments can be deferred and capitalized.  

A loan comparison tool provided by Simple Tuition is available online at:  http://www.certifiedprivateloans.com/  

Some lenders to consider based on our students' prior borrowing, competitive rates, and customer service are:

New Jersey residents should look into the New Jersey Class Loan Program (1-800-792-8670) prior to borrowing any private alternative loan funding.

   * The order in which the lenders are listed is not intended, nor does it reflect, the University's position with respect to any lender. 

Student Loan Frequently Asked Questions and Answers