Federal and private loans

Loans

Federal Perkins Loan

eligibility is determined on the basis of need;
funds in this program are extremely limited, priority is given to those students who have exhausted their Federal Stafford Loan eligibility and still demonstrate substantial need;
awards in this program range from $1000 to $5000 annually
repayment begins nine months after graduation (or dropping below half-time enrollment)at an annual interest rate of 5% and may extend over a ten year repayment period;
deferments are given for unemployment and under-employment;
cancellations are available for full-time employment in a number of areas including law enforcement and military service.

Federal Stafford Loan

students may borrow up to $20,500 per year;
students must be enrolled at least half–time to apply;
as of July 1, 2007 the Stafford Loan interest rate was fixed at 6.8%;
lenders may charge up to a 3% origination fee and 1% insurance fee of the amount borrowed;
students may borrow up to an aggregate total of $138,500 including undergraduate amounts;
repayment begins six months after graduation (or dropping below half–time);
if the student has a demonstrated need, up to $8,500 per year is available through the subsidized Stafford Loan program, in which case the interest is paid to the lender on the borrower's behalf by the federal government while the borrower is in school and during the six month grace period;
students may borrow $20,500 in an unsubsidized Stafford Loan less the amount borrowed in the subsidized Stafford Loan;
interest begins to accrue on the unsubsidized Stafford Loan at the time of disbursement. Students may pay the interest while in school or defer it and allow it to capitalize.

Federal Graduate PLUS Loan

students may borrow the difference between their "cost of attendance" and all other aid;
students must be enrolled at least half–time to apply;
students must exhaust their Stafford Loan eligibility before applying for a Grad PLUS;
students must pass a credit review;
the interest rate is fixed at 8.5%;
interest begins to accrue on the Grad PLUS at the time of disbursement. Students may pay the interest while in school or defer it and allow it to capitalize;
repayment begins the day following the final disbursement, however, students are eligible to apply for an in–school deferment;
there is an origination fee of 3% of the amount borrowed.

Private Loans

students may borrow the difference between their "cost of attendance" and all other aid;
students must have a good credit history in order to qualify for these private loans;
Need a copy of your credit report? Visit the FTC-approved free annual credit report web site;
interest may be deferred while the student is enrolled, however, deferred interest is capitalized and added to the principal;
interest rates and guarantee fees vary among lenders
Pierce Law currently identifies five lending institutions as "Preferred Lenders". Although you may borrow through any participating lender, if you are unsure which lender to work with, please review this list. Our office strongly suggests that you review each website carefully and contact lenders directly with your questions in order to make an informed decision.

When choosing a lender, keep in mind that in addition to loan interest rates and fees, you should also consider customer service, website ease and borrower benefits. Please refer to our Selecting a Lender link as a starting point in the lender selection process.