Student loans are self-help awards which must be repaid.
A Federal Perkins Loan is a low-interest (5 percent) federal loan administered by Carnegie Mellon. Carnegie Mellon offers this loan to students who have exceptional financial need as determined by Federal Methodology and Carnegie Mellon. You receive consideration for a Federal Perkins Loan if you complete a FAFSA and a Carnegie Mellon 2008-2009 Financial Aid Application. There is no separate application for this loan program. Enrollment Services will automatically credit the loan to your student account (one-half in the fall, one-half in the spring).
If you are offered a Federal Perkins Loan, Enrollment Services will contact you regarding the signing of your Perkins Master Promissory Note. If you do not sign your Perkins MPN, your Federal Perkins Loan will be cancelled.
Repayment of both principal and interest does not begin until nine months after you graduate or are no longer enrolled at least half-time (18 units per semester). No interest accrues on the loan until you begin repayment.
A Federal Stafford Loan (FSL) is a loan given by a private lender (e.g., bank, credit union, or other financial institution) to students. The interest rate is fixed at 6.8%.. There are two types of Federal Stafford Loans - subsidized and unsubsidized. Only one Master Promissory Note (MPN) needs to be completed to obtain both subsidized and unsubsidized consideration. The combined total for the subsidized and unsubsidized FSL is $20,500 per academic year. The aggregate limit for subsidized and unsubsidized FSLs together (including undegraduate and graduate borrowing) is $138,500. You can access your student loan borrowing history by visiting the National Student Loan System (NSLDS) website.
You must be a U.S. Citizen or eligible non-citizen, be enrolled on at least a half-time basis, and complete the FAFSA, the Carnegie Mellon Financial Aid Application (tax returns and W-2's must be submitted with this application). You must complete Federal Entrance Loan Counseling and the Federal Stafford Loan Master Promissory Note. We recommend that you complete and return the applications no later than June 15, 2008. Applications may still be completed after this date, but it may delay the recept of your funds.
If you are a first-time borrower at Carnegie Mellon, you must complete a Federal Stafford Loan Master Promissory Note (MPN) online. Click here to review our list of recommended lenders and apply directly through the website listed. Complete instructions for applying with an AES (American Education Services) lender are available by clicking HERE.
If you are a repeat borrower of a Federal Stafford Loan (FSL) and completed a Stafford Loan Master Promissory Note (MPN) with an AES lender, you do not need to complete another Stafford MPN for each subsequent academic year. Your FAFS will serve as your application.
Your FSL funds will be electronically deposited into your student account at Carnegie Mellon on or about September 2, 2008 for the fall semester and on or about January 2, 2009 for the spring semester. In some cases you may be required to sign your FSL check in The HUB before the loan proceeds can be credited to your student account.
You must demonstrate financial need to qualify for a Subsidized Federal Stafford Loan. As a graduate student, you may borrow a maximum of $8,500 in subsidized FSL funds per academic year. The Subsidized FSL is limited to the cost of education, minus the Expected Family Contribution and any financial aid you will receive. The aggregate limit for the Subsidized FSL (including undergraduate and graduate borrowing) is $65,500. You do not begin to repay the loan and interest until six months after you graduate or after you cease half-time enrollment. You will have up to ten years to repay the loan.
In addition to the Subsidized FSL, the Federal Government also has an Unsubsidized Federal Stafford Loan Program. The annual maximum you can borrow under this program is $12,000 plus any of the $8,500 Subsidized FSL for which you do not qualify. The Unsubsidized FSL is limited to the cost of education minus any financial aid you will receive. The terms and conditions of the Unsubisidized FSL are the same as for the Subsidized FSL, such as length of repayment, deferments and interest rates. You will be required to pay the interest for any in-school and deferment periods. Interest is automatically added to your principal unless you mark box 12 on the MPN, indicating that you want to pay interest while in school. Our recommendation is that you pay the interest while in school.
A Federal Grad PLUS Loan is a non-need based loan given by a private lender (e.g., bank, credit union or other financial institution) to creditworthy students.The interest rate is fixed at 8.5%.
More information can be found here.