Subsidized Stafford Loans – Any student who files a FAFSA and who meets the eligibility requirements will qualify for a Federal Stafford Loan. Subsidized Stafford Loans do not accrue interest until a student ceases to be enrolled. The interest rate is set each year on July 1, and is a fixed rate loan. For 2016-2017 the subsidized interest rate is 3.76%.
Unsubsidized Stafford Loans – If you do not meet the financial need criteria to qualify for a subsidized loan, you can still apply for an unsubsidized loan. You are responsible for paying the interest while you are in school. If you cannot make the interest payments, the interest can be added to your principle balance. The interest rate is set each year on July 1, and is a fixed rate loan. For 2016-2017 the unsubsidized loan interest rate is 3.76%.
Federal Loan Programs for Parents
Parent Loans for Undergraduate Students (PLUS) – PLUS Loans are available for every creditworthy parent who is a U.S. citizen or eligible non-citizen, who has completed the FAFSA.
Parents may apply for a PLUS Loan at www.studentloans.gov. Please complete this step no later than July 1. A delay can prevent the loan from being credited to your student’s account prior to first semester tuition due date of July 15. First-time PLUS Loan borrowers at Belmont Abbey College are also required to complete an online master promissory note. For 2016-2017 the PLUS loan interest rate is 6.31%.