Office of Student Financial Assistance

Offering undergraduate and graduate students a variety of ways to finance their education

Office of Student Financial Assistance / Types of Assistance / Loans

Loans

Federal Aid

Federal student aid is financial assistance through the U.S. Department of Education available to eligible students enrolled in eligible programs* as regular students* at schools participating in the federal student assistance programs. Federal student assistance covers school expenses such as tuition and fees, room and board, books and supplies and transportation. All students who are accepted to the college and who submit the Free Application for Federal Student Aid (FAFSA) are automatically considered for federal, state, and college financial assistance programs

Eligibility

Students applying for federal financial assistance or educational loans must be United States citizens or permanent resident aliens.

Types of Federal Aid

The Direct Loan Program enables students to borrow for educational expenses. There are two types of loans: Subsidized and Unsubsidized.

Subsidized Student Loans (Need Based):

A Need-based loan. Student will not accrue interest until after they have left school.

Interest Rate: Fixed Rate- 3.86%
Annual maximums: yr1-$3500, yr2-$4500, yr3-$5500, yr4-$5500
Repayment: You do not need to start repayment until:

  • 6 months after graduation
  • Withdrawal
  • Leave of Absence
  • Drop below half-time enrollment

Types of Loans

Unsubsidized Student Loans (Non-Need Based):

The Federal Direct Loan Program enables students to borrow money for educational expenses. There are two types of direct loans: subsidized and unsubsidized Stafford. Subsidized loans have no interest charged while the student is enrolled at least half-time. Unsubsidized loans accrue interest during all periods. Eligibility for loans is determined by the analysis of the FAFSA and is outlined on your award notification. All terms and conditions of these loans will be provided when you complete the Stafford Loan Entrance Counseling and sign a Master Promissory Note (MPN).

Interest Rates: Fixed rate- 3.86%

Repayment: You do not need to start repayment until:

  • 6 months after graduation
  • Withdrawal
  • Leave of Absence
  • Drop below half-time enrollment

Types of Loans

Federal Direct PLUS Loans:

A loan taken by the parent of a student for educational expenses. Accrues interest until the loan is paid in full Federal Direct PLUS Loan (parent of dependent student) Parents may borrow money for the educational expenses of a dependent child through the PLUS Loan program. PLUS stands for Parent Loan for Undergraduate Student. The information on the student’s award letter indicates the maximum PLUS loan a parent may borrow for the academic year. We encourage families to carefully consider how much they need to borrow and only accept that amount of the PLUS loan. Interest is charged on PLUS loans starting from the day of disbursement. A credit check is required as part of the application process.

Interest Rates: Fixed Rate – 6.41%

Repayment: Borrower must contact their loan servicer to explore repayment option for their Federal Direct Loans

Types of Loans

Federal Direct Unsubsidized Graduate Stafford Loan:
Eligibility for the loans is determined by the analysis of the FAFSA and is outlined on your
award notification. All terms and conditions of these loans will be provided when you complete all the
required paperwork. Unsubsidized Loans accrue interest during all periods.
Interest rate: Graduate Student (for loans disbursed 7/1/13-6/30/14): 5.41%.
Fees: An origination fee of 1.072% is charged on the loan.
Repayment: You do not need to start making payments until 6 months after you graduate, leave school, or drop below half-time enrollment. Interest is charged on the loan during the Grace Period.
Types of Loans

Federal Direct Graduate PLUS Loan:
Graduate students may borrow funds on an unsubsidized basis through the Federal Graduate PLUS
Program. The information in your award package indicates the maximum PLUS loan you could
borrow for the academic year. We encourage students to carefully consider how much they need to
borrow and only accept the amount of Graduate PLUS Loan which is absolutely necessary. Interest is
charged on Graduate PLUS Loans starting from the day of disbursement. A credit check is required
as part of the application process. Unsubsidized Loans accrue interest during all periods.
Interest rate: 6.41%<
Fees: An origination fee of 4.288% is charged on the loan.
Types of Loans

Private Alternative Loans

Undergraduate and graduate students and families who are looking to cover their cost of education may be interested in private loans. While we recommend exhausting your federal loan options first, students may opt to use private loans to fund their education. The ability to receive a private loan is based on the credit rating of the borrower and their co-signer. Eligibility, interest rates and the terms and conditions for each loan are dependent on the lender. Students can work directly with the lender of their choice to determine the best situation for them.

Here are some lenders that have worked with SMCM students in the past. You may also use a lender not on this list.