Palmer College of Chiropractic has a
simplified, straightforward process, called the Federal Direct Student
Loan application, for students applying for federal student loans such
as the Federal Subsidized Stafford Loan, the Federal Unsubsidized
Stafford Loan and the GradPLUS Loan. View the process and go through the three steps.
Federal Subsidized Stafford Loan
Subsidized
Stafford Loans have an interest rate that is determined on July 1 of
each year. The interest rates whether variable or fixed may never exceed
8.25%. While the borrower is in school at least half time, interest on a
Stafford Loan is paid by the federal government on the borrower’s
behalf. Loan repayment generally begins six months after graduation or
separation from school.
The total
Federal Subsidized Stafford Loan debt limit for undergraduate work is
$23,000 or $5,500 per academic year. The total for graduate study is
$65,500 including loans made at the undergraduate level. Graduate
students may borrow up to $8,500 per academic year.
Federal Unsubsidized Stafford Loan
The
Federal Unsubsidized Stafford Loan program enables dependent and
independent students to borrow from eligible lenders at a variable
interest rate to assist in meeting educational expenses.
This
program is similar to the Federal Subsidized Stafford Loan program,
with the one difference that the Unsubsidized Stafford accrues interest
while the borrower is in school. While enrolled, the borrower has the
option of making monthly interest payments or deferring payments, which
allows the interest to accrue and be capitalized no more frequently than
quarterly and capitalized again when loan repayment begins. The
interest rate may not exceed 8.25%.
The
maximum students may borrow as independent undergraduates is $5,000 per
academic year. Graduate students may borrow up to $24,500 per academic
year.
The total Federal Unsubsidized
Stafford Loan debt for undergraduate work is $46,000 minus Subsidized
Stafford aggregate. The total loan debt for graduate study is $224,000
minus Subsidized Stafford aggregate.
Federal Perkins Loan
Loans
administered by the College are available to undergraduate and graduate
students under the Federal Perkins Loan program. To be eligible,
students must show need and ability to maintain acceptable academic
standing. Awarding parameters may vary on each campus. You will be
notified of Perkins Loan eligibility by your financial aid
administrator. The College currently does not have funds available for
the Perkins Loan.
Repayment of the
Federal Perkins Loan begins nine months after graduation, withdrawal
from Palmer College or if a student falls below half-time enrollment
status. During the repayment period, students will be charged five
percent interest on the unpaid balance of the loan principal. The amount
of repayment depends upon the size of the debt. The minimum monthly
payment is $40 per month.
You must
notify your school of any changes in status (change in name, address,
social security number, etc.); only your school can grant deferments,
decide terms of the loan, repayment obligations, or decide questions
about the loan.
If a student defaults
on a Federal Perkins Loan, the College will take every possible action
to recover the loan. If a student becomes totally or permanently
disabled or dies, the obligation will be cancelled.
Federal Grad PLUS Loan
The
Grad PLUS Loan carries an 8.5% fixed interest rate. It has a 3%
origination fee and a 1% default fee. In order to be eligible for a Grad
PLUS loan, a student must not have any adverse credit (determined by a
credit report). A student is eligible to borrow up to the entire cost of
education, less any other financial aid for which they are eligible.
Payment on the Grad PLUS loan is deferred while the borrower is in
school at least half time. The Grad PLUS loan can be consolidated with
other federal student loans.