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Types of Loans
At LeTourneau, there are several categories of loans to apply for to help make your LETU education a reality. Below are a list of the loans available to students and parents.
Federal Direct Student Loan - Features a Subsidized and Unsubsidized loan and loan counseling is required (entrance and exit).
Subsidized: Federal government pays interest while student is enrolled "in school" (at least half-time, pursuing a degree or certificate) and during a six-month grace period after leaving "in-school" status. The loan is need-based.
Unsubsidized: Interest accrues while student is "in school." Unpaid accrued interest is capitalized at repayment. This loan is not need-based.
Base loan limit - Freshmen: $3,500. Sophomore: $4,500. Junior and Senior: $5,500. Graduate/Professional: $8,500
Additional unsubsidized limits for independent students are: $6,000/year freshmen and sophomores; $7,000/year juniors and seniors; $12,000/year graduate and professional.
Maximum total Stafford debt limit when you graduate: $31,000 (dependent undergrad); $57,000 (independent undergrad); $138,000 (grad/professional).
The interest rate for new subsidized and unsubsidized loans first disbursed on or after July 1, 2012, is a fixed 6.80%.
How to Apply Online:
- Accept your student loans through the MyLETU award system
- Stafford Loan Master Promissory (MPN) note must be completed before any funds will be disbursed to the student account at www.studentloans.gov. E-signing is available.
- Entrance Counseling: First-time Stafford borrowers must complete the online Stafford Loan Entrance Counseling at www.studentloans.gov.
- Repeat borrowers do not need to complete a new promissory note.
Federal Perkins Loan - provides low-interest loans to assist educational needs. Those who are eligible for this loan may borrow from $500 to $4,000 per year. Repayment begins nine months after you graduate or leave school for other reasons. You will be charged 5 percent interest on the unpaid balance of the loan principal.
Federal Direct PLUS Loan - Designed to help the parents or legal guardians of dependent students to pay for post-secondary education. They may be obtained in addition to or in place of Federal Direct Student Loans. You may use the loan money you receive only to pay for your child's education expenses at LETU. Education expenses include: tuition, room and board, fees, books, supplies, equipment, dependent child care expenses, transportation, and rental or purchase of a personal computer.
The interest rate on a Direct PLUS loan is fixed at 7.9 percent. In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS loan you receive. This fee helps reduce the cost of making these low-interest loans. We deduct the fee before you receive any money, so the loan amount you receive is actually less than the amount you have to repay.
PLUS borrowers may receive up to the student's estimated cost of education less other financial aid, including Federal Direct Student Loan assistance for which the dependent student is eligible. Borrowers will be subject to a credit evaluation. If a PLUS loan is denied, the dependent student may be eligible for an unsubsidized Federal Direct Student Loan.
Repayment of the PLUS loan will begin within 60 days after the final disbursement, unless the borrower qualifies for deferment. Interest must be paid or capitalized (added to the principal) is payment is deferred.
How to Apply Online:
The PLUS loan application may be completed at www.studentloans.gov
. E-signing is available. When you apply for a Direct PLUS Loan, the Department will check your credit history. To be eligible for a PLUS Loan, you must not have an adverse credit history. If you are found to have an adverse credit history, you may still borrow a PLUS Loan if you get an endorser who does not have an adverse credit history. An endorser is someone who agrees to repay the Direct PLUS Loan if you do not repay the loan. The endorser may not be the student on whose behalf a parent obtains a Direct PLUS Loan. In some cases, you may also be able to obtain a Direct PLUS Loan if you document to the Department of Education's satisfaction that there are extenuating circumstances related to your adverse credit history.