Federal Family Educational Loan Programs (FFELP)

Federal Subsidized Stafford Loan, the Federal Unsubsidized Stafford Loan and the Federal PLUS Loan make up these loan programs. The FFELP loans are low interest loans that undergraduates, graduates and parents of dependent undergraduates may obtain from a lending institution such as a bank. Specifically, eligible students may borrow the Federal Stafford Loans and eligible parents may borrow the Federal PLUS Loan on behalf of their dependent students. These loan programs were created by Congress to help all eligible students and parents, with and without financial need, pay for the student's educational expenses.

To Apply:

Complete the Free Application for Federal Student Aid so your eligibility for each type of loan can be determined. All other necessary paperwork required by the Office of Student Financial Services must be turned in as well to make the review of your eligibility complete.

Once Awarded:

If you are eligible for a federal student loan it typically appears on your financial aid award letter. The maximum amount you may borrow is usually listed, relative to your estimated cost of attendance at SWOSU. Award maximums are listed below, but must always fit within the limits of the Cost Of Attendance minus other financial aid as dictated by the federal guidelines.

Federal Stafford Loans

Students borrow Federal Subsidized and Unsubsidized Stafford Loans in their name only. No cosigner is required. Credit history is not a factor, no credit check is done to qualify for these loans. Although if a student has defaulted on a student loan before they cannot borrow again, other credit history items do not affect approval of these loans. Students with bankruptcy history may have extra steps required before loan approval.

Federal Stafford Loan Limits (both Subsidized and Unsubsidized combined)

• Dependent Undergraduates:
• Freshmen may borrow up to $5,500 per year. Up to $3,500 may be subsidized loan.
  
• Sophomores may borrow up to $6,500 per year. Up to $4,500 may be subsidized loan.
  
• Juniors and Seniors may borrow up to $7,500 per year. Up to $5,500 may be subsidized loan.
  
• The maximum that all dependent undergraduates may borrow for all years is $31,000.

Independent Undergraduates:

• May borrow the same limits as Dependent Undergraduates, but may qualify to borrow additional Unsubsidized Stafford Loans as well up to the limits shown below (if they fit within the estimated Cost of Attendance).
• Freshmen and Sophomores may borrow up to an additional $6,000 per year of Unsubsidized Loan.
• Juniors and Seniors may borrow up to an additional $7,000 per year of Unsubsidized Loan.
• The maximum that all independent undergraduates may borrow for all years is $57,500. (Of which only $31,000 can be in Subsidized Stafford Loans.)

Graduates:

• Graduates may borrow up to $20,500 per year (not to exceed $8,500 in subsidized)
• The maximum that all graduates may borrow for all years is $138,500 (not to exceed $65,500 in subsidized)

Federal PLUS Loans

Parents can borrow money on behalf of their dependent students through the Parent Loans for Undergraduate Students (PLUS) program. These loans are in the parent's name, are charged a higher interest rate than Stafford student loans, require a check on the parents credit history and require repayment on principle to begin shortly after disbursement of the loan money. But they are still a much better borrowing opportunity than most other consumer loans.

If a dependent student's parent applies for and is denied a PLUS Loan due to credit reasons, the student may qualify for additional Stafford student loans in their name. Contact the Office of Student Financial Services Loan Counselor if your parents are denied a PLUS Loan to see what loan borrowing options exist for you.

Federal PLUS Loan Limits

Eligible parents may borrow the cost of attendance minus other estimated financial aid. If a student chooses not to take their Stafford Loan eligibility, it must still be counted as aid available when determining their parent's maximum PLUS borrowing limit.

Origination Fee

This fee (usually 1%) is charged by the lender and deducted from the loan principle prior to disbursement to the student. For FFELP loans, this fee is paid to the federal government to offset the cost of the interest subsidy to borrowers.