Federal Direct Stafford Loans (Subsidized and Unsubsidized)
This loan program is administered by the University. Subsidized Direct Loans are based on need, while Unsubsidized Direct Loans are not need-based. A student may receive a combination of both loans but the following loan limits by grade level cannot be exceeded. Students must be enrolled at least half-time (6 or more credits for undergraduates) to be eligible to receive a Direct Stafford Loan. Please visit www.studentloans.gov for more information.
Annual Maximum Federal Direct Loan Limits
Undergraduate Direct Loans
|Freshman (0 - 28.5 credits)||$5,500||$9,500|
|Sophomore (29 - 55.5 credits)||$6,500||$10,500|
|Junior and Senior (56 - 124 credits)||$7,500||$12,500*|
The undergraduate dependent student loan total cannot exceed $31,000, and the total loans for an undergraduate independent student cannot exceed $57,500.
Graduate Direct Loans (Unsubsidized Only Beginning With July 1, 2012)
Each year, a graduate student may borrow up to $20,500 in unsubsidized Federal Direct Loans. Changes to Federal Regulations no longer allows for subsidized loans for graduate students. Click here for a look at the terms for Graduate/Professional Loans.
*The maximum amount a graduate student can borrow upon graduation is $138,500 (up to $65,000 in subsidized loans). Certain graduate schools, such as health-related schools, allow up at $224,000 in graduate student loans.
Graduate Plus Loan
The Graduate Plus Loan is a credit based, fixed interest rate student loan funded through the United States government that provides assistance for graduate and professional degree students. Students may borrow up to the total cost of their education and must be enrolled at least part-time. Students must be credit worthy to be eligible.
Federal Perkins Loan
The Federal Perkins Loan is administered by the University. Depending on funding available, loan amounts range from $600 - $1,200 per academic year. Priority is given to students who file before the April 17 deadline. The Perkins Loan carries an interest rate of 5 percent. Repayment begins nine months after you graduate, leave school, or drop below half-time enrollment status. This is a need-based loan.
Parent PLUS Loan
The Office of Financial Aid encourages parents to consider applying for the Federal Direct Parent PLUS Loan before seeking funding through a private loan.
The Federal Parent Loan for Undergraduate Students (PLUS Loan) provides government-insured, long-term, low-interest loans for eligible parents of dependent, undergraduate students who do not qualify for other financial assistance. Parents may borrow up to the total cost of their dependent student's education minus any other aid for which the students are eligible.
PLUS loans are available to parents who do not have an adverse credit history.
Candidates: Parents of Dependent Undergraduate Students
Loan Maximum: The yearly limit on a PLUS Loan is equal to your cost of attendance minus any other financial aid you receive. If your cost of attendance is $6,000, for example, and you receive $4,000 in other financial aid, your parents can borrow up to $2,000.
Parent Plus Loans and Refund Checks:
Parents applying for the PLUS loan please note that when completing the online application you will be presented with the option to have any credit balance sent to the student, however Kean University has an institutional policy that prohibits excess funds as a result of the PLUS loan from being sent to the student. Any PLUS loan anticipated refund will be sent to the parent regardless of the option selected on the PLUS application. Feel free to contact the Office of Financial Aid with any questions.
Private or Alternative Loans
Alternative loans are private loans offered through a lending institution and not part of federal government programs. Alternative loan rates may vary from federal government guaranteed loan. Eligibility is based on the credit worthiness of the borrower or co-signer, if applicable. Please contact the lender directly with any questions related to a loan program's specific terms and conditions. You have the right to select the education loan provider of your choice.
Private Loan New Regulations *effective February 14th, 2010*
The Higher Education Opportunity Act of 2008 amended the federal Truth-in-Lending act to include new disclosure requirements and to prohibit certain practices for creditors making private education loans.
What does this mean for you, as a student?
- Lenders will be required to send you new standardized disclosures.
- You will be required to complete a “self-certification” with the lender.
- You will be given a 30-day approval window to accept loans offered.
- You will have a 3-day right to rescind the loan.
Students will be asked to provide the cost of attendance based on # of credits, and the financial assistance or financial aid they are eligible for. Copy information found on the website’s Tuition and Fees page for the cost of attendance; for the financial assistance question, log onto KeanWISE and copy your financial aid award information onto the Self-Certification form and submit to lender.
Self-Certification example (Department of Education):
|Student's cost of attendance for the period of enrollment covered by loan||$27,504.00|
|Estimated financial assistance||$5,500.00|
|Difference between amounts A and B||$22,004.00|
After the Self-Certification is received, the University can then certify for disbursement.
Financial Aid Disbursement
The process of disbursing financial aid to student accounts begins after the add/drop date published each semester. Before aid is disbursed, the Office of Financial Aid is required to adjust awards and the cost of attendance if the student's credit load changes during the registration period. Additionally, awards may be adjusted after the third week's attendance report has been submitted by all instructors and/or if changes occurred to the student's on-campus housing status. Upon final review of attendance by the Office of Financial Aid, awards will be disbursed by the sixth or seventh week of the semester.
Awards for students selected for "verification" that are incomplete or missing documents will not be disbursed until all documents have been received, reviewed and completed. Verification is processed on a rolling basis according to the date all documents are received by the Office of Financial Aid.
Students Attending the Full Academic Year
All financial aid funds are disbursed in two disbursements to the student's account. If the student is attending both the Fall and Spring semesters of the academic year, their funds will be disbursed at the beginning of each term. Federal funds will be disbursed no sooner than 30 days after the start of the semester.
Students Attending Only One Semester
For students attending only one semester funds must still be disbursed in two disbursements. The first disbursement will be after the start of the semester (federal funds will be disbursed no sooner than 30 days after the start of the semester) and the second will be no sooner than 30 days after the first disbursement.