Federal Stafford Loans
Regent University will be transitioning to the Federal Direct Loan Program as the provider of all Title IV loans effective June 18, 2010. For more information on the Direct Loan Program, please visit here.
These loans require a completed and correct FAFSA and other requirements, but are not based on the student's credit history, unless the student has defaulted on another federal student loan or owes money for an over-award on a federal grant. There are two types of loans available: subsidized and unsubsidized. The student must be making Satisfactory Academic Progress (SAP).
All first-time borrowers at Regent University are required to complete entrance counseling prior to disbursement of loan funds. In addition, all recipients must complete exit counseling prior to graduation, withdrawal from Regent or otherwise ceasing to be enrolled on at least a half-time basis. All Stafford Loans are processed through the William D. Ford Direct Loan Program. The earliest disbursement of loans takes place no sooner than ten days prior to the start of a term. Loan proceeds must be split into two disbursements for loan periods longer than one semester. If a student withdraws from classes, a refund may be due from the student or the student may be required to return a portion of funds received (see the University Return to Title IV policy).
Subsidized Stafford Loans
The Subsidized Stafford Loan is a low-cost plan to help pay educational costs. A graduate student may be eligible for up to $8,500 per academic year with the Federal Subsidized Stafford Loan and an undergraduate student may be eligible for up to $5,500. Eligibility amounts are based on the student's need. The federal government pays the interest on the loan while the student is enrolled at least half-time or during periods of authorized deferment. You have a six-month grace period after graduation, or otherwise becoming enrolled less than half-time, before entering the ten year repayment period. Note: Beginning with the 2012-13 award year graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans.
Unsubsidized Stafford Loans
A graduate student may be eligible for up to $20,500 per academic year and an undergraduate student may be eligible for up to $12,500 per academic year with the Federal Unsubsidized Stafford Program. If the student is eligible for the maximum subsidized loan, the maximum unsubsidized loan is $12,000 for graduate students and $7,000 for undergraduates. Unsubsidized loans are not based on need, and interest begins to accrue at disbursement with the option of deferring until repayment or making quarterly payments.
Certain health profession students may borrow increased unsubsidized loan amounts. Students must be enrolled at least half time in a health professions discipline that was formally eligible under the HEAL Program and accredited by an approved accrediting agency. Doctoral students majoring in Clinical Psychology are eligible for an additional unsubsidized loan of $12,500 for a 9-month academic year or $16,667 for a 12-month academic year. Students in this program are also eligible for higher aggregate loan limits for their subsidized and unsubsidized loans. (see chart below).
Interest Rates
The interest rates on your Stafford Subsidized and Unsubsidized Loans are based on your grade level and the dates the loans were disbursed. All Stafford Loans disbursed prior to July 1, 2006 have a variable rate that is adjusted annually.
Loans disbursed after July 1, 2006 have a FIXED interest rate based on your grade level.
Loan Type |
Grade Level |
First Disbursed |
Interest Rate |
Stafford Subsidized Loan |
Undergraduates |
7/1/2010 to 6/30/2011 |
4.5% |
7/1/2011 to 6/30/2012 |
3.4% |
||
Stafford Unsubsidized Loan |
Undergraduates |
7/1/2006 and beyond |
6.8% |
Stafford Subsidized and Unsubsidized Loans |
Graduate Students |
7/1/2006 and beyond |
6.8% |
Note: Subsidized and unsubsidized Federal Stafford Loans may be consolidated once you are in the repayment period. Consolidation may extend the length of your repayment period and lower your monthly payments, although the amount of interest paid over the life of the loan will increase. Consolidation may or may not be the best option for you. Contact the Direct Loan Servicing Center for more information.
| Annual Limits for Stafford Loans |
Subsidized | Total (Subsidized & Unsubsidized) |
| Dependent - Undergraduate Students | ||
| First Year (0 to 29 credits) | $3,500 | $5,500 |
| Second Year (30 to 59 credits) | $4,500 | $6,500 |
| Third Year & Beyond (60+ credits) | $5,500 | $7,500 |
| Independent - Undergraduate Students | ||
| First Year (0 to 29 credits) | $3,500 | $9,500 |
| Second Year (30 to 59 credits) | $4,500 | $10,500 |
| Third Year & Beyond (60+ credits) | $5,500 | $12,500 |
| Graduate & Professional Studies | $8,500 | $20,500 |
| Psy. D. Students | $8,500 | $37,167 |
Note: Effective with the 2012-13 award year graduate and professional students are no longer eligible to receive Federal Direct Subsidized Loans. The annual loan limit for graduate and professional students remains unchanged at $20,500 ($37,167 for certain health professions students), but this amount will now be limited to Direct Unsubsidized Loans. The aggregate loan limits are unaffected by this change.
| Aggregate Limits for Stafford Loans |
Subsidized |
Total (Subsidized & Unsubsidized) |
| Dependent - Undergraduates | $23,000 | $31,000 |
| Independent - Undergraduates | $23,000 | $57,500 |
| Graduate & Professional Students | $65,500 | $138,500 |
| Psy. D. Students | $65,500 | $224,000 |
LOAN ELIGIBILITY
In order to qualify to receive a student loan (Stafford or private), a student must be enrolled and attend classes/submit assignments on at least a half-time basis, regardless of the stage of his/her program. Half-time is defined as follows:
| Minimum number of credits for loans: | Fall | Spring | Summer |
| Undergraduate | 6 | 6 | 6 |
| Graduate Students | 5 | 5 | 3 |
| Doctoral Students | 3 | 3 | 3 |
If a student plans on dropping below these levels, he/she should contact Central Financial Aid before making any final decision or submitting paperwork. Your counselor will review with you the effects of dropping below half-time status on your loan eligibility.
The total loan amount a student is eligible for is based on the following formula:
Cost of Attendance (COA) - Aid (scholarships, etc.) = Total Loan Eligibility
The following formula determines a student's eligibility for a Subsidized Loan:
COA - Expected Family Contribution (EFC) - Aid = Subsidized Loan Eligibility
APPLYING FOR AID
Students are encouraged to begin the financial aid application process in conjunction with their admissions application. Although a financial aid award cannot be made until a student is accepted, all necessary paperwork will be on file to expedite the awarding process upon acceptance. Students interested in borrowing a Federal Stafford Loan should complete the Free Application for Federal Student Aid (FAFSA) as soon after January 1 as possible or when the previous year’s taxes are completed. Central Financial Aid suggests submitting the FAFSA by March 15 to ensure timely processing and arrival of funds for the fall semester.
The FAFSA may be submitted one of two ways. The student may fill out the paper application or complete the FAFSA-on-the-Web. The location of FAFSA-on-the-Web is www.fafsa.ed.gov 
. Submitting the FAFSA online greatly reduces the processing time of the application.
Early submission of applications helps to ensure the arrival of funds by the final payment deadline. It also allows for necessary information to be available when Central Financial Aid begins the awarding process.
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Last updated September 26, 2011
