Financial Aid Programs

Saybrook University participates in the William D. Ford Federal Direct Loan Program in which borrowers obtain loan funds directly from the U.S. Department of Education. Loans available include Federal Direct Subsidized Loans, Federal Direct Unsubsidized Loans, and Direct Grad PLUS Loans. The U.S. Department of Education is the lender and loan funds are delivered directly to Saybrook’s University students’ accounts through the Business Office. Federal loan options are:

Direct Subsidized

If you are eligible for a Direct Subsidized Stafford Loan the U.S. Department of Education pays the interest while the borrower is in school and during grace and deferment periods; students must be attending at least half-time and have financial need; fixed interest rate of 6.8%.

Unsubsidized Direct Stafford

Students who are eligible for the Unsubsidized Direct Stafford Loan the are responsible for all interest; must be at least half-time, financial need not required; fixed interest rate of 6.8% for new borrowers. For loans with a first disbursement date between July 1, 2010 and June 30, 2011, will have a loan fee of 1.5%. To take out a Direct Loan you must complete a Master Promissory Note (MPN) for each loan one for the Federal Direct Stafford Loans and one for the Federal Direct Graduate Loans. Please follow the instructions on the award letter to apply for your federal direct loans. A good rule of thumb is to complete the MPN and the Entrance Loan Counseling Online Interview at the same time. Note that the U.S. Department of Education requires first-time borrowers in the Federal Direct Stafford Loan Program to complete an online loan entrance counseling session before loan funds will be credited to your account. The session provides you with useful tips and tools to develop a budget for managing educational expenses and understand loan responsibilities. Students are required to complete an entrance interview for the Federal Direct Stafford Loan and one for the Federal Direct Grad PLUS Loan. The session takes 20 to 30 minutes to complete.

Annual/Aggregate Federal Stafford Loan Limits Graduate and Professional Students

Federal PLUS Loans for Graduate and Professional Students

The Federal Direct PLUS program allows eligible graduate and professional students to borrow up to the cost of attendance less any other aid they’ve been awarded. To be eligible to borrow from PLUS, graduate and professional students must file a FAFSA and must first borrow from the Federal Direct Subsidized and or/or Unsubsidized Federal Direct Loans. The Federal Direct Grad PLUS has a fixed 7.9% interest rate, in-school payment deferment, and fixed monthly payments. PLUS Loans can be consolidated with other federal student loans. Borrowers must not have adverse credit history. The maximum amount is cost of attendance minus any other financial aid student receives (including Federal Stafford Loans). Grad Loans with a first disbursement date between July 1, 2010 and June 30, 20111, have a loan fee of 4%. Loan amounts for both loans (Direct Sub & Unsub) cannot exceed cost of attendance minus any resources that you receive.

Other Federal Benefit Programs

Additionally, some students may be eligible for education benefits from the following federal programs:

• Veterans Administration
• AmeriCorps
• Tax Credits