Loans are
sources of
funding that
allow you to
spread the
cost of your
education
over time.
Loans are
available
from various
sources,
including
federal and
state
governments,
the
University
and private
lenders. As
you progress
toward your
degree
completion,
the amount
of annual
loan
eligibility
typically
increases.
When you
take out a
student
loan, you
must pay it
back -- even
if you do
not complete
your
education.
Federal
Perkins
Loans
-
These
loans
are
based
on
financial
need
as
demonstrated
by
the
information
provided
on
your
FAFSA
and
on
the
availability
of
funds.
Preference
is
given
to
students
who
demonstrate
exceptional
need through
the
FAFSA
and
whose
forms
are
received
by
our
priority
filing
deadline
of
April
1st.
The
maximum
Federal
Perkins
loan
amount
for
undergraduate
students
is
currently
$4,000
per
year.
William D.
Ford Federal
Direct Loans
William
D. Ford
Federal
Direct
Loans
are
low-interest
(variable
rate)
loans
awarded
by the
school
and
provided
by the
federal
government.
The
interest
rate is
adjusted
each
July 1
but will
not
exceed
8.25%.
These
loans
may be
either
subsidized
or
unsubsidized.
Federal
Direct
Loan
amounts
are
based on
the cost
of
attendance
at a
particular
school
and the
student's
grade
level.
Dependent
students
may
borrow
the
following
amounts:
$3,000/year
for
1st-year
undergraduates.
$4,500/year
for
2nd-year
undergraduates.
$5,500/year
for 3rd
or
4th-year
undergraduates.
$8,500/year
for
graduate
students.
The
aggregate
limit
that an
undergraduate
dependent
student
can
borrow
is
$23,000.
Independent
students
may
borrow
the
following
amounts:
$7,500/year
for
1st-year
undergraduates
(at
least
$4,000
must be
unsubsidized).
$8,500/year
for
2nd-year
undergraduates
(at
least
$4,000
must be
unsubsidized).
$10,500/year
for 3rd
or
4th-year
undergraduates
(at
least
$5,000
must be
unsubsidized).
$13,620/year
for
graduate
students
(at
least
$5,120
must be
unsubsidized).
The
aggregate
limit
that an
undergraduate
independent
student
can
borrow
is
$46,000.
The
amounts
listed
above
are
maximums.
Remember,
a
student
may not
borrow
more
than Mercer's
Cost of
Education
minus
other
financial
aid
and/or
scholarships.
-
Subsidized
Federal
Direct
Loan
-
Subsidized
Federal
Direct
Loans
are
awarded
on
the
basis
of
financial
need.
The
interest
on
this
loan
is
paid
by
the
federal
government
while
the
student
is
enrolled
in
school
at
in
at
least
half-time
(six
hours
for
undergraduates),
and
during
the
first
6
months
following
withdrawal
or
graduation
from
school.
The six
months
following
departure
from
school
is a
grace
period.
After
this
period,
the
student
must
begin
repayment
of
the
loan.
-
Unsubsidized
Federal
Direct
Loan
-
Unsubsidized
Federal
Direct
Loans
are
not
awarded
on
the
basis
of
financial
need.
Interest
is
charged
from
the
time
the
loan
is
disbursed
until
the
loan
is
paid
in
full.
The
student
can
choose
to
pay
the
interest
or
allow
it
to
accumulate.
If
the
interest
is
allowed
to
accrue,
it
will
be
added
to
the
principal
amount
of
the
loan,
thereby
increasing
the
amount
of
money
the
student
is
required
to
repay.
Students
must
be
enrolled
in
at
least six
credit
hours
to
be
eligible
to
receive
this
loan.
-
Federal
PLUS
Loans
-
PLUS
Loans
enable
creditworthy
parents
to
borrow
funds
to
help
pay
the
educational
expenses
of
their
dependent
undergraduate
child
who
is
enrolled
in
at
least six
hours.
PLUS
repayment
generally
begins
within
60
days
of
the
loan's
disbursement.
The
interest
rate
is
8.5%..
-
To
apply,
a
separate
form
must
be
completed
every
year
by
the
parent
or
legal
guardian.
The
yearly
limit
a
parent
can
borrow
is
equal
to
the
cost
of
attendance
at
Mercer,
minus
any
other
financial
aid
which
the
student
is
receiving.
-
-
If
the
loan
is
denied
due
to
an
adverse
credit
history,
the
parent
will
be
notified
by
the
Direct
Loan
Servicing
Center.
The
parent
may
pursue
the
PLUS
Loan
further
by
securing
a
creditworthy
endorser
(cosigner).
The
student
is
not
eligible
to
endorse
a
PLUS
Loan.
If
the
parent
does
not
wish
to
pursue
the
PLUS
Loan
further,
the
student
may
be
eligible
to
receive
a
Federal
Direct
Unsubsidized
Loan.
Further
information
is
available
from
the
Financial
Aid
Office.
If you
are a
Federal
Loan
Recipient,
you must
complete
Entrance
Counseling.
This
session
covers
important
information
regarding
your
loan
obligations.
This
information
includes
your
repayment
schedule,
disclosure,
your
borrower
rights
and
responsibilities,
and your
personal
information
form.
Entrance
counseling
may be
completed
online
at
www.ed.gov/directloan
and
clicking
on
entrance
counseling
for
borrowers.
Once you
complete
your
entrance
counseling
session
you must
print
and sign
the
Rights
and
Responsibilities
check
list and
return
it to
the
Office
of
Financial
Planning
either
by mail
or fax.
Entrance
counseling
will
also be
held
during
summer
orientation.
You
are
required
to
have
entrance
counseling
before
you
receive
funds
from
the
Federal
Direct
Student
Loan
Program.
If
you
are
a
Federal
Loan
Recipient
when
you
leave
or
graduate
from
Mercer,
you
must
complete
an
Exit
Interview
session
that
covers
important
information
regarding
your
loan
obligations.
This
information
includes
your
repayment
schedule,
disclosure,
your
borrower
rights
and
responsibilities,
and
your
personal
and
confidential
information
form.
The
Exit
Interview
may
be
completed
online,
or
in
person
at
the
Office
of
Student
Financial
Planning.
You
will
be
contacted
by
the
Office
of
Student
Financial
Planning
to
set
up
your
Exit
Interview.
You
should
also
contact
any
other
lenders
you
have
had
in
the
past
for
Exit
Interview
information.
If
you
do
not
attend
an
Exit
Interview,
a
"hold"
may
be
placed
on any
future
registration, student
records,
transcript
and
diploma.
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