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Federal Educational Loan Programs

Educational loans were developed specifically for college students and parents and are repayable at competitively low interest rates. They are simple to apply for (via the FAFSA), are readily available and generally offer a variety of repayment options. The majority of loans that are based on financial need – the subsidized ones – require no repayment of principle or payment of interest while the student is in school, as long as he/she is attending at least half-time (generally six credits per term). Unsubsidized loans require quarterly interest payments (not principle) while the student is in attendance. The principle on both types of loans becomes repayable after a grace period, generally after the student graduates or is enrolled for less than six credits per term.

For college students and their family members, the two largest educational loan programs are the William D. Ford Federal Direct Student Loan Program, and the Federal Family Educational Loan Program (FFELP). Long Island University offers loans through the Federal Direct Student Loan Program, and also offers loans through the Federal Perkins Student Loan and for pharmacy majors, the Health Professions Student Loan Programs. The federal government guarantees all of these loans, and most are based on demonstrated financial need.

To help our students and their family members become informed borrowers, we offer the following information on the educational programs. This information explains loan borrowing from the application process through the repayment process, and can help families in making the best loan choices for their student. Additional information also is available in our “Financial Aid Guide,” which is sent to all students with their award notices each year and can be found in the Brochures & Forms section of this Web site.

The left-hand navigation bar provides links into helpful information that you will need to apply for an educational loan.

Federal Perkins Student Loans

Source of Funding
L.I.U. Administered; Campus-Based
Eligibility Requirements
Full-Time Students; U.S. Citizen or Permanent Resident; Demonstrate Financial Need
Applications Required
FAFSA or Renewal FAFSA
Special Aspects
Award Amounts
Up to $4,000 Per Year But Not to Exceed $4,500 for the First-Two Years of Study
Lifetime Amount or Limit
Undergraduate: $27,000; Graduate Combined: $60,000
Repayment Terms
Begins Nine Months After Graduation or Termination of at Least Half-Time Study at 5% Interest
Deadlines
Mid-March Prior to Award Year
After You Apply
Award Letter from the Office of Student Financial Services

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Health Professions Student Loan (HPL)

Source of Funding
L.I.U. Administered; Campus-Based
Eligibility Requirements
Full-Time Pharmacy Students; U.S. Citizen or Permanent Resident; Demonstrate Financial Need
Applications Required
FAFSA or Renewal FAFSA
Special Aspects
Must Major in Pharmacy
Award Amounts
Up to $5,000 Per Year
Lifetime Amount or Limit
None
Repayment Terms
Begins Twelve Months After Graduation or Termination of Full-Time Study in Pharmacy at 5% Interest
Deadlines
Mid-March Prior to Award Year
After You Apply
Award Letter from the Office of Student Financial Services

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Federal Direct Subsidized Loans

Source of Funding
Federal Government
Eligibility Requirements
U.S. Citizen or Permanent Resident ; Subsidized Loans: Requires that Student Demonstrates Financial Need
Applications Required
FAFSA or Renewal FAFSA
Special Aspects
Award Amounts
Year 1 - $3,500; Year 2 - $4,500; Year 3,4,5 - $5,500; Graduate - $8,500
Lifetime Amount or Limit
Undergraduate:Sub: $23,000; (Independent Under.) $23,000; Graduate:$65,500
Repayment Terms
Begins Six Months After Graduation or Termination of Part-Time Study at a Fixed 6.80% in the 2009-2010 Academic Year. New loans after 7/1/08 have a rate of 6.0% and after 7/1/09 have a 5.6% Interest Rate.
Deadlines
Within 30 Days of Semester’s End
After You Apply
Federal Agency Will Send a Disclosure Statement

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Federal Direct Unsubsidized Loans

Source of Funding
Federal Government
Eligibility Requirements
U.S. Citizen or Permanent Resident ; Cost of Education minus Financial Aid
Applications Required
FAFSA or Renewal FAFSA
Special Aspects
Award Amounts
Year 1 - $6,000; Year 2 - $6,000; Year 3,4,5, - $7,000; Graduate Students - $12,000
Lifetime Amount or Limit
Undergraduate: $34,500 (includes Subsidized Loans); Graduates: $138,500 (Includes Undergraduate Loans of Which no More than $65,500 can be Subsidized Loans)
Repayment Terms
Payment of Interest is Required Quarterly Beginning 60 Days after Disbursement with Principal Repayable Six Months after Graduation or Termination of Part-Time Study at a 6.8% Fixed Interest Rate.
Deadlines
Within 30 Days of Semester’s End
After You Apply
Federal Agency Will Send a Disclosure Statement

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Federal Parent PLUS Loans/Graduate PLUS Loans

Source of Funding
Federal Government
Eligibility Requirements
Parents of Undergraduate; Students and Graduate Students; U.S. Citizen Or Permanent Resident; Credit Check is Required
Applications Required
FAFSA or Renewal FAFSA
Special Aspects
Amount Borrowed Cannot Exceed Cost of Education Minus Financial Aid; Co-Borrowers Permitted
Award Amounts
Up to Cost of Education Minus Financial Aid
Lifetime Amount or Limit
None
Repayment Terms
Begins 60 Days After Disbursement at a Low 7.9% to Date; Deferment until 6 months after student graduates is permitted.
Deadlines
Within 30 Days of Semester’s End
After You Apply
Federal Agency Will Send a Disclosure Statement

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Alternate Loan Programs (Non-Governmental Sources)

Source of Funding
External Lenders
Eligibility Requirements
Must be Financially Creditworthy
Applications Required
Lender's Electronic/Paper Application and FAFSA or Renewal FAFSA
Special Aspects
May Use Co-Borrower if Student is Not Financially Creditworthy
Award Amounts
Up to Cost of Education Minus Financial Aid
Lifetime Amount or Limit
None
Repayment Terms
Varies from Within 45 Days or Six Months After Disbursement of Loan; Variable Interest Rate.
Deadlines
Within 30 Days of Semester’s End
After You Apply
Guaranty Agency Will Issue a Disclosure Statement

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