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 The term "self-help" refers to either borrowing
and/or working. Loans must be repaid by the student and/or
the parents. Employment or work-study provides a moderate
resource which can assist the student in meeting part of
his/her expenses. Summaries of the various self-help programs
are as follows:
FEDERAL STAFFORD LOAN
Students who demonstrate a financial need as determined
by federal guidelines will be eligible to borrow a Federal
Subsidized Stafford Loan. Students who do not demonstrate
need in the application process will have the option of applying
for an Unsubsidized Federal Stafford Loan. The major difference
between these two loans is that the student who borrows an
Unsubsidized Federal Stafford Loan is responsible for the
interest that accumulates while he/she is in school; with
the Federal Subsidized Stafford Loan, the federal government
pays interest and other costs during the period
of enrollment. Repayment
by the student begins six months after he/she is no longer
enrolled at least on a half-time basis.
The interest rates on loans made during the 2010/11 academic year are, 4.5% for subsidized Stafford loans and 6.8% for unsubsidized Stafford loans. Annual borrowing limits are $5,500 for freshmen (0-28 hours); $6,500 for sophomores (29-58 hours); and $7,500 for juniors and seniors (59+ hours).
FEDERAL
PERKINS LOAN
This federal loan is a need-based, 5% interest loan made
to students by Grace College. Interest does not accrue during
the time the student is in school. A beginning amount was
granted to Grace from the federal government which, combined
with repayments to the fund from previous Grace borrowers,
determines the number and amount of loans which can be made
available. Most loans do not exceed $2,000 per year due to
limited funds. There is a nine month grace period after the student is no longer enrolled at least half-time.
FEDERAL PLUS LOANS
This is a non-need-based loan program which allows parents
to apply to borrow funds to pay for college expenses. A parent may apply to borrow
a maximum of the student's cost of attendance minus any student
financial aid. The PLUS loan has an annual interest
rate of 7.9%. Monthly repayment on PLUS loans begins
within 60 days after the second disbursement of the loan. Deferment may be requested at the time of the loan application.
STUDENT EMPLOYMENT (Work-Study)
Part-time employment may be available to qualified students
who wish to work in order to help meet part of their expenses.
On-campus we offer need-based Federal Work-Study and non-need
based Grace Work Study Positions. Also offered are employment
opportunities in off-campus community service through the
Federal Work-Study Program. Student employees average approximately
10 hours per week and receive paychecks every two weeks for
their work. (This process may vary for those in off-campus
Federal Work-Study positions.)
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