MBA for Professionals   :: Stafford Loans and the Graduate PLUS Loan

Federal Stafford Loans
The Federal Stafford Loan program includes two programs; the Subsidized Federal Stafford Loan and the Unsubsidized Federal Stafford Loan. Eligible students who are U.S. citizens and permanent residents may borrow up to $20,500 for each period of two consecutive semesters enrolled in Willamette's Professional MBA program.

Eligibility for Stafford Loans is determined by submission of the FAFSA (Free Application for Federal Student Aid). Stafford Loans are administered through the Willamette University Office of Financial Aid and are borrowed from banks, credit unions, savings and loan associations and other sources.

The Subsidized Federal Stafford Loan Program provides subsidized need-based loans to graduate students. MBA students eligible for the Subsidized Federal Stafford Loan Program may borrow up to their level of need as determined by the FAFSA, within a maximum of $8,500 per year. The interest rate on Stafford Loans is set at 6.8 per cent. Interest does not accrue nor are payments due on the Subsidized Federal Stafford Loan while a student is enrolled at least half-time.

Repayment begins six months after graduation or six months after a student drops below half-time status. The standard repayment period is 10 years. The repayment period can be extended to 20 or 30 years. Subsidized Federal Stafford Loans are eligible for loan consolidation.

The Unsubsidized Federal Stafford Loan Program provides additional funding for students participating in the Subsidized Stafford Loan Program, or assistance to students not financially eligible to participate in the Subsidized Stafford Loan Program.

MBA students may borrow up to $20,500 per year (less subsidized Stafford eligibility) and are responsible for interest that accrues on the Unsubsidized Federal Stafford Loan while in school. The interest rate on Stafford Loans is set at 6.8 per cent. Interest may be paid quarterly or capitalized to the principal.

Repayment begins six months after graduation or six months after a student drops below half-time status. The standard repayment period is 10 years. The repayment period can be extended to 20 or 30 years.

Federal Graduate PLUS Loan
MBA students who are U.S. citizens or permanent residents are eligible to utilize the new credit-based Federal Graduate PLUS Loan Program to borrow above the amount provided by Stafford Loans. In fact, combining the Stafford and PLUS Loans allows students to borrow up to the estimated full cost of attendance (estimated budget of educational, living and personal expenses minus other financial assistance).

Eligiligibility for PLUS Loans is determined by submission of the FAFSA (Free Application for Federal Student Aid). Interested students must have applied for their annual loan maximum eligibility under the Stafford Loan program before applying for a PLUS loan.

PLUS Loans are administered through the Willamette University Office of Financial Aid and are borrowed from banks, credit unions, savings and loan associations and other sources.

The repayment term is 10 years. The interest rate is fixed at 8.5 per cent. Interest begins to accrue on the PLUS loan as soon as the funds are released to the school.

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Learn How to Apply for Stafford Loans and PLUS Loans