William D. Ford Direct Stafford Loans
William D. Ford Direct Stafford Loans ($5,500 Fr; $6,500 So; $7,500 Jr,Sr) include both subsidized and unsubsidized loans and provide low-interest loans to qualified students who need to borrow to help pay for college. Applications for the loan will be sent to students from the Office of Financial Aid. Lincoln College will use one lender, and it will not be necessary for students to contact a lending institution. Subsidized loans are made to students who demonstrate financial need. The Federal Government pays interest on the loan until students begin repayment and during authorized periods of deferment. Unsubsidized loans are not based on financial need. The primary difference between the two types of Federal Loans is that for unsubsidized loans, the student is responsible for paying the interest while the borrower is in school at least half-time, throughout the grace period, and during authorized periods of deferment. Repayment of both principal and interest begins after a six-month grace period. The maximum interest rate is 8.25% for the life of the loan.
William D. Ford Direct Parent Loans (PLUS)
William D. Ford Direct Parent Loans (PLUS) (Cost – Aid) are available to parents of dependent students. Loan amounts may not exceed the total educational expenses minus financial aid awarded. Federal Parent Loans are certified by the institution. The borrower must repay the full amount borrowed plus interest. The first payment is due within 60 days of disbursement. The borrower is allowed at least five years, but not more than ten years, to repay the loan. The interest rate is a variable rate that cannot exceed 9% (percent). Applications will be sent upon request from the Office of Financial Aid.