All education loans must be repaid. Before receiving any loans, borrowers should establish a plan to repay them. Loans must be repaid even if student experiences difficult financial circumstances and/or did not complete his or her education.
There are certain eligibility requirements for each program. All applicants for loans are required to file a Free Application for Federal Student Aid (FAFSA). Loan eligibility cannot be determined until Owens receives a complete processed FAFSA and certain eligibility criteria have been reviewed.
The federal government provides educational loans to students under the Federal Direct Loan program. Repayment of the Federal Direct Loan begins six months after graduation or six months after dropping below half-time status.
There are two types of Federal Direct Loans:
Federal Direct Subsidized Loan: This is a need-based loan for which the interest is paid by the government while the student is in school at least half-time. Interest will begin to accumulate at the start of the studentís 6 month grace period (the period of time before repayment, which occurs after the student is no longer in school at least half time). Students who are new borrowers beginning July 1, 2013, may receive the Federal Direct Subsidized Loan for a timeframe equivalent to 150% of the length of the studentís degree or certificate, provided that all other eligibility criteria are met. In addition, any previously-borrowed subsidized loan will begin to accrue interest at the time that the student reaches the 150% timeframe. Click here for more information about this limit.
Federal Direct Unsubsidized Loan: There is no financial need requirement to be eligible for an Unsubsidized Loan. However, total financial aid, which includes the Unsubsidized Loan, cannot exceed the cost of attendance. Unlike the Subsidized Loan, interest accumulates while the student is attending school and can be paid monthly or capitalized (added to the total loan balance) until the student leaves school.
Enrollment required: Students must be enrolled in, attend and maintain a minimum of 6 credit hours.
Application: Free Application for Federal Student Aid (FAFSA).
Click here for more information about the Federal Direct Loan, including award amounts, eligibility criteria, fees, interest rates, and repayment information.
Parents can borrow funds to cover educational costs for their dependent students. Students must be enrolled in and attend a minimum of 6 credit hours and meet the eligibility criteria outlined in the Federal Direct Parent PLUS Loan information. Parents can begin repayment when the loan is fully disbursed, with the first payment generally due within 60 days, or can choose to begin repayment six months after the student is no longer enrolled at least half time or graduates. There is no financial need required to be eligible; however, total financial aid cannot exceed cost of attendance. The applicant's credit history will be evaluated in determining loan eligibility.
Maximum award amount: Student's costs less other financial aid, subject to credit approval
Enrollment required: Students must be enrolled in and maintain a minimum of 6 credit hours.
Click here for more information about the Federal Direct Parent PLUS Loan, including eligibility criteria, fees, interest rates, and repayment information.
The Nurse Education Assistance Loan Program (NEALP) is a state program for nursing students who, upon completion of their education, plan to practice nursing in the state of Ohio. Students must be admitted to the nursing program to be considered. The loan is based on financial need. After graduation, the student may be eligible for loan forgiveness at the rate of 20 percent per year and a maximum loan cancellation of 100 percent. For more information, refer to the NEALP website listed below or call the Ohio Board of Regents State Grants & Scholarships Office at 1-888-833-1133.
Award amount: Up to $1,500 per year, which may be renewed for a maximum of four years.
Enrollment required: A minimum of 6 credit hours
Application: NEALP application forms are available on the Ohio Board of Regents website. Applications are available beginning January 1 and must be submitted by July 15 preceding the fall semester. Students must complete the Free Application for Federal Student Aid before submitting the NEALP application.
The C.E. Schell Foundation Loan is a no-interest loan provided through funds from the C.E. Schell Foundation. Students may be offered up to $500 per semester, for up to a cumulative maximum of $2,000 per student. Funding is highly limited. Students are offered the loan at the discretion of the Office of Financial Aid, with priority to students who, due to highly extenuating circumstances, are unable to cover their educational expenses with other financial aid programs. Students must also complete the Free Application for Federal Student Aid.
The C.E. Schell Foundation requires students to meet the following criteria:
Some lenders offer private "alternative" loans to students to help cover educational costs. These loans generally require that the borrower has good credit or a credit-worthy cosigner. Eligibility requirements, application procedures, fees, interest rates, and repayment terms vary. Families are encouraged to utilize the Federal Direct and Federal Direct PLUS Loan programs before considering an alternative loan. Students must also complete the Free Application for Federal Student Aid.