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.
Federal Subsidized Stafford Loan (Undergraduate students only)
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.
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.
In order to receive the Federal Perkins Loan you must complete the following steps:
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 (Graduate students only)
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.
Palmer College of Chiropractic's official Title IV 2-year Cohort Default Rate:
2009 - 1.9% 2010 - 2.3% 2011 - 2.3%
Contact the Financial Planning Office with questions about the above information.