Academic Catalog Spring 2019

to earn money to help pay for education expenses. The program encourages community service work and work related to the student’s course of study. William D. Ford Federal Direct Loans: Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources. Bluefield Col- lege encourages our students and parents to borrow conservatively and responsibly. Stu- dents and parents can begin repayment at any time to reduce total debt without penalty. William D. Ford Federal Direct Loans: Loans made by the federal government, called federal student loans, usually offer borrowers lower interest rates and have more flexible repayment options than loans from banks or other private sources. Bluefield Col- lege encourages our students and parents to borrow conservatively and responsibly. Students and parents can begin repayment at any time to reduce total debt without penalty. William D. Ford Federal PLUS Loans (for parents): The PLUS (Parent Loan for Undergraduate Students) loan is available to parents of dependent students with a good credit history and is used to supplement other financial aid sources. The student must com- plete the FAFSA, and a separate PLUS loan request form is required. Subsidized and Unsubsidized Direct Loans The Subsidized Direct Loan requires financial need, which is determined by using a federal formula. Limited to undergraduate students only, these loans are “subsidized” in that the government pays the interest for you during the following periods: The Unsubsidized Direct Loan is not based on financial need and is available to all federally-eligible students regardless of income and assets. Because these loans are not subsidized by the government, you are responsible for all interest which accrues during in-school, grace, and deferment periods. You may choose to make payments to cover the accruing interest while in school, or you may simply allow the interest to accrue and be included in the amount you owe when you begin repayment. Federal Direct Stafford Loan Annual Limits Dependent Students Independent Students Grade Level (Subsidized and or Dependents with Unsubsidized) PLUS Denial Freshman (0-27 Earned Credits) $3,500 + $2,000 $3,500 + $6,000 Sophomore (28-57 Earned Credits) $4,500 + $2,000 $4,500 + $6,000 Junior (58 -91 Earned Credits) $5,500 + $2,000 $5,500 + $7,000 Senior (92+ Earned Credits) $5,500 + $2,000 $5,500 + $7,000 Graduate Level $20,500 Federal Direct PLUS Loans The Federal Direct PLUS Loan is available to parents of dependent students (by FAFSA dependency rules, not IRS dependency rules) to help them pay for their child who is enrolled in school at least half time and is making satisfactory academic progress. Direct PLUS Loans are not based on financial need, and parents of all income levels may • while you are enrolled in school at least half-time or 6 credits, • for the first six months after you leave school “grace period,” and • during a period of approved deferment.

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