College of Adult & Professional Studies

Educational Loans

Most students borrow to pay a portion of their school bill. When choosing a loan, students should begin with the Federal Stafford Loan and then if additional funds are needed, other educational loans. Loans must be repaid; therefore, students are encouraged to borrow only what they need, and only what they can afford to repay.

Federal Stafford Loan

(See the Stafford Loan webpage for more information and the application procedure.)

Eligibility: Students who demonstrate financial need are eligible for a Subsidized Federal Stafford Loan for which the federal government pays the interest until students enter repayment (six months after graduation or dropping below half time). Students who do not qualify for the interest subsidy may borrow an Unsubsidized Federal Stafford Loan for which the government does not pay the interest (i.e., the borrower is responsible for the interest while in school and through the grace period). Students must be enrolled at least half time.

Maximum Annual Loan Limits:

	Dependent Student	Independent Student
1st Year	$5,500 - No more than $3,500 of this amount may be subsidized	$9,500 - No more than $3,500 of this amount may be subsidized
2nd Year	$6,500 - No more than $4,500 of this amount may be subsidized	$10,500 - No more than $4,500 of this amount may be subsidized
3rd and 4th Years (each)	$7,500 - No more than $5,500 of this amount may be subsidized	$12,500 - No more than $5,500 of this amount may be subsidized
Maximum Total  Stafford Loan Debt When You Graduate	$31,000 - No more than $23,000 of this amount may be in subsidized loans	$57,500 - No more than $23,000 of this amount may be in subsidized loans

Features: Stafford Loans disbursed after July 1, 2006, have a fixed interest rate for the life of the loan. The interest rate for undergraduate students for loans disbursed from July 1, 2009 to June 30, 2010 is 5.6% for subsidized and 6.8% for unsubsidized Stafford loans. Beginning with the 2009-2010 academic year, Bethel University will participate in the Federal Direct Loan Program in which students will get their Direct Stafford Loans directly through the U.S. Department of Education, rather than through private lenders.

Federal PLUS Loan

(Parent Loan for Undergraduate Students)

(See the PLUS Loan webpage for more information and the application procedure.)

Amount: Cost of attendance minus other aid.

Eligibility: Parent of dependent student(s). Student must be enrolled at least half time.

Features: Beginning with the 2009-2010 academic year, Bethel University will participate in the Federal Direct Loan Program in which parents will get their Direct PLUS Loans directly through the U.S. Department of Education, rather than through private lenders. Direct PLUS loans have a 7.9% fixed interest rate. Repayment of principal and interest begins 60 days after loan is fully disbursed (approximately April 1).

Private Student Loans

(See the Private Loan webpage for more information, Bethel's list of preferred lenders, and the application procedure.)

Amount: Cost of attendance minus other aid.

Features: Variable interest rates. Repayment generally begins after students graduate. Students responsible for interest while enrolled. Fees and interest rates vary depending on lenders and credit check. Co-signer required by some lenders.