(Southern Adventist University \302\273 Undergraduate Catalog ...

insurance premium of up to one percent of the loan principal, which is deducted proportionately from each disbursement.The procedure for applying is the same as for a Federal Direct Stafford Loan. Southern Adventist University can refuse to certify a loan application, orcan certify a loan for an amount less than a student’s parents would be eligible for. The parents will be notified in writing, with a full explanation if sucha circumstance should arise.Federal law requires the US Department of Education to send the loan proceeds to the school in at least two payments. Payments will be sent either byelectronic transfer or by check made co-payable to the school and to the parents.Monthly principal and interest payments begin 60 days after the final loan disbursement. There is no “grace period” for these loans.If a deferment—a postponement of repayment—applies (including a deferment for college enrollment), the parents’ repayment of the principal amountborrowed will not begin until the deferment ends. The interest on the loan is not deferred during the time of the deferment, although the organizationthat holds the loan may allow the interest to accumulate until the deferment ends. In such a case, however, the interest will be added to the principal,increasing the amount of principal that will need to be repaid.Federal Direct Stafford Loans are low-interest loans made to students attending college at least half-time. These loans are insured by a guaranteeagency and reinsured by the federal government. A borrower must repay this loan.Students enrolled at least half-time may qualify for a “subsidized” Federal Direct Stafford Loan, which is based on financial need. Dependent studentswhose parents were denied a PLUS loan and independent students who enroll at least half-time may also apply for an “unsubsidized” Federal DirectStafford Loan regardless of need; that is, regardless of their or their family’s financial status.Dependent undergraduate students may borrow up to:• $5,500 if they are first-year students enrolled in a program of study that is a full academic year.• $6,500 if they have completed at least 24 credit hours, and the remainder of their program is a full academic year.• $7,500 a year if they have completed at least 55 credit hours and the remainder of the program is at least one academic year.The total Stafford Loan debt that a dependent undergraduate student may accumulate is $31,000.Independent undergraduate students may borrow up to:• $9,500 if they are first-year students enrolled in a program of study that is a full academic year. (At least $6,000 of this amount must be inunsubsidized Stafford Loans.)• $10,500 if they have completed at least 24 credit hours and the remainder of the program is a full academic year. (At least $6,000 of thisamount must be in unsubsidized Stafford Loans.)• $12,500 a year if they have completed at least 55 credit hours and the remainder of their program is at least one academic year. (At least$7,000 of this amount must be in unsubsidized Stafford Loans.)The total Stafford Loan debt that an independent undergraduate (or a dependent undergraduate student whose parents do not qualify for PLUS loans)may accumulate is $57,500, with no more than $23,000 in subsidized loans.For information on the interest rate, students should contact the organization that holds their loan.The “origination fee” of up to four percent of the loan principal is deducted proportionately from each disbursement made. The lender may collect aninsurance premium of up to one percent of the loan principal, which is deducted proportionately from each disbursement.The amounts given are the maximum amounts that can be borrowed; however, students cannot borrow more than the cost of education at SouthernAdventist University minus any other financial aid they receive.Associate Degree Students will be considered as having less than 55 credit hours for loan purposes.Undergraduate Students Attending Less than a Full Academic Year may borrow an amount which may be less than the amounts listed above.Information about how much may be borrowed can be obtained from the Enrollment Services Office.WorkFederal Work-Study Program—Federal Work-Study funds are available to undergraduate students with demonstrated financial need. Under the FederalWork-Study program, the employer pays a small part of the student’s wages, and the government pays the remainder. Most work-study positions are oncampus. Students are responsible for acquiring their own jobs.