Loans

 Subsidized Stafford Loans*

 Unsubsidized Stafford Loans*

 Parent Loans for Undergraduate Students (PLUS)

 Federal Perkins Loans*

 Providing Affordable Tuition Help (PATH)

 Alternative Loans
*See Federal Loan Eligibility Requirements

Subsidized Stafford Loan

The Stafford Subsidized Loan is awarded to students on the basis of financial need determined by the Free Application for Federal Student Aid (FAFSA). Lending institutions, such as banks or credit unions, provide the funds for this loan. The federal government pays the interest on this loan until you begin repayment. Repayment of this loan will begin six months after you graduate, leave school, or drop below half-time enrollment (6 hours). To qualify for this loan please see the Federal loan requirements.

Unsubsidized Stafford Loan

The Unsubsidized Stafford Loan Program was created by the government to assure that all students, regardless of their income, would be able to obtain a student loan. The federal government does not pay the interest while you are in school. Interest will be charged from the time the loan is disbursed until it is repaid in full. If you decide to capitalize or defer the interest, it will be added to the principal amount of your loan and this will increase the amount you have to repay. If you choose the option of paying the interest as it accumulates, then you will pay less in the long run. Repayment of the interest and principle will begin six months after you graduate, leave school, or drop below half-time enrollment (6 hours). To qualify for this loan please see the Federal loan requirements.

Parent Loans for Undergraduate Students (PLUS)

The purpose of the Parent Plus Loan is to assist parents by providing a source of loan funds to help pay the cost of education for dependent undergraduate students. Parents may borrow up to the full cost of attendance less any other financial assistance the student receives. Parents must be able to pass a credit check or obtain a 'co-signer' who is able to pass the credit check. Both the parent and student must meet general eligibility requirements for federal financial assistance, but FAFSA is not required for a PLUS . Students must be enrolled at least 6 hours each semester to be eligible.

Federal Perkins Loan

The Perkins Loan is a long-term, low interest loan for both undergraduate and graduate students that have exceptional financial need. Perkins loans are made through our financial aid office; Southwestern University is your lender and the loan is made with institutional and government funds. You must repay this loan to SU. You are required to sign a promissory note each year you receive a Perkins loan. It is possible to have your Perkins loan cancelled because of the type of work you do once you leave school. Cancellations are possible in the fields of teaching, law enforcement, social work, nursing, or volunteer service. For more information on teaching cancellations click here. You may contact our office for information on other available cancellations.

Providing Affordable Tuition Help (PATH)

Southwestern Gold PATH Loan is a parent loan program that utilizes the Federal PLUS loan as the funding source.  During enrollment at Southwestern University, the parent is required to make a monthly payment.  As of February 2006, payment rates range from $50 to $800 based upon the annual amount borrowed.  If the parent makes the Recommended Payment Amount for the Gold PATH loan, Southwestern University will pay an amount equivalent to the projected accumulated interest on the Gold PATH loan while the student is at Southwestern.  The maximum interest rate that Southwestern will pay is 9%.  Upon graduation, leaving SU or completing 48 months in the program (whichever comes first) the borrower becomes responsible for all interest and principal payments.  An origination fee of 3% and a loan guarantee fee of 1% will be assessed on each disbursement.  All loans require a credit check showing no adverse credit history.  The interest rate is currently variable, based on the 91 day T-Bill + 3.1%, capped at 9%, and set on July 1 of each year.

Alternative Loans

Alternative student loans are offered by banks or lending institutions to help students and parents bridge the gap between the cost of education and the amount of financial aid received. These are private supplemental loans that are NOT guaranteed by the federal government. Terms and conditions can vary according to specific lender guidelines. While students are free to use any lender, click here for Southwestern University's Alternative Loan Preferred Lenders.