FINANCIAL AID

LOANS

Federal Perkins Loan:  This is a low-interest federal student loan program currently available to freshmen and sophomores receiving aid through the UWGB or other campus; BCON does not participate in the Perkins Loan Program.  The maximum annual award is $4000.  This loan is interest-free to the student as long as she/he is enrolled at least half-time.  Repayment of the loan at 5% fixed APR interest will begin six months after graduation or the date the student drops below half-time enrollment.  Borrowers may take up to 10 years to fully repay the loan.  NOTE:  Full-time registered nurses may allow for cancellation benefits of a Perkins Loan.  This means that the federal government may repay (principal plus interest) a portion of the Perkins Loan each year of full-time employment as a registered nurse.  The loan may be fully forgiven within five years of continuous full-time employment.

Federal Stafford Loan:  This is the largest of the federal student loan programs and is available to undergraduate and graduate students.  A minimum of half-time enrollment is required to receive a Stafford Loan.  There are two types of Stafford Loan:  Subsidized and Unsubsidized.  The Subsidized loans are awarded based upon financial need and are considered ‘subsidized’ because the federal government pays any accruing interest on the loans for the student as long as the student remains in school as at least a half-time student.  Unsubsidized loans are not need-based which means that the government does not pay the interest; the student (borrower) is responsible for paying the interest while enrolled or in deferment status.  A student may borrow either subsidized, unsubsidized or a combination of the two depending upon financial need and the student’s dependency status.  See the chart below for annual maximum awards (reflects maximums effective for all loans borrowed on or after July 1, 2007).  Stafford loans are borrowed from lenders such as banks or credit unions; students will be asked to identify the lender of choice when completing the appropriate Stafford Loan promissory note and other documents.  The interest rate on a Stafford Loan is fixed at 6.8%.  Repayment of the loan at 6.8% fixed APR interest will begin six months after graduation or the date the student drops below half-time enrollment.  A maximum of 10 to 25 years is allowed for repayment depending upon the total amount borrowed and available repayment options.

In addition to the annual loan limits noted above, the federal government also limits the total amount of Stafford Loan debt a student may borrow.  The aggregate loan limit, as this is called, is based upon undergraduate and graduate study.  The absolute maximum an undergraduate student may borrow regardless of the number of undergraduate degrees sought or the number of colleges/universities enrolled in or borrowed through, is $23,000 (dependent students) and $46,000 (independent student but no more than $23,000 of this amount may be in subsidized loans).  The maximum a graduate or professional student may borrow regardless of the number of degrees sought or the number of colleges/universities enrolled in or borrowed through, is $138,500 (but no more than $65,500 of this amount may be from subsidized loans); this includes all loans borrowed for undergraduate study.

Federal PLUS Loan:  PLUS Loans are available to parents of undergraduate students who wish to borrow funds to help with the costs of education.  Parents may borrow any amount needed up to the difference between the total costs of attendance and all other aid the student is to receive.  This means that, in general, a parent may borrow enough to cover any anticipated balance of tuition and fees charges plus enough to help with other expenses such as books, housing, and transportation.  Repayment of a PLUS Loan will begin within 60 days of receiving the final disbursement of the loan with a fixed interest rate of 8.5%.  Borrowers will have a maximum repayment term of ten years.  New for 2006-2007 and beyond:  Graduate students (MSN Program) may borrow a PLUS Loan.  Since all graduate students are automatically considered independent, the PLUS Loan can only be in the student’s name—a parent may not borrow a PLUS Loan for a graduate student.  This should only be done if the student has exhausted all Federal Stafford Loan eligibility for the year since the PLUS Loan has a much higher interest rate.  To request a PLUS Loan, contact the financial aid office through which all other aid has been awarded.

WI Nursing Student Loan (NSL): The Nursing Student Loan Program provides need-based loans to Wisconsin resident undergraduates or graduate students who are enrolled at least half-time at an eligible in-state institution that prepares them to be licensed as nurses, either RN or LPN. The maximum award per year is $3,000 with an overall maximum of $15,000. The student who participates in this program must agree to be employed as a licensed nurse in Wisconsin. For each of the first two years the student works as a nurse or nurse educator and meets the eligibility criteria, 25% of the loan is forgiven. The balance remaining after forgiveness must be repaid at an interest rate of 5%. If the student does not work as a nurse or nurse educator and meet the eligibility criteria, the loan must be repaid at an interest rate of 5%.  This program has very limited funding; BCON and UWGB each award a maximum of five or six students each academic year (individual awards range from $250 to $3000).