What is a student loan?
A student loan is money you borrow for educational purposes that you must pay back with interest. The specific sum of money you borrow is called the principal. Interest is a percentage of the principal which you pay as a fee for borrowing. When it comes time to pay back the principal and interest you usually pay in monthly installments. According to the loan program, you may choose to postpone (or defer) payment of your loans. However, if you fail to repay (or default) the government may penalize you.

What kind of loans are available?
All qualified financial aid students may borrow through the Federal Family Education Loan Program. Federal Stafford Loans allow the student to borrow money from a private lender to help pay for education costs. Under this program, the lender will make a loan in your name payable to the University and you. The Federal Stafford Loan Program includes Subsidized Loans and Unsubsidized Loans.

What is the difference between the two types of Federal Stafford loans?
The Subsidized Stafford loan is interest free to the student (the government pays the interest) while the student is enrolled in school at least half time, during the grace period and during periods of authorized deferment. The Unsubsidized Stafford loan is not interest free at any time. However, the interest and principal payments may be deferred while the student is in school at least half time, during the grace period and during authorized periods of deferment. If the interest payments are deferred the interest will continue to accrue and will be added (capitalized) to the principal balance once repayment begins. Both loan types have a grace period which means the student does not have to begin making payments until six months after graduating, withdrawing or dropping below half time attendance.

How do I apply for my student loans?
After your financial aid has been determined, you may complete an Application for a Federal Stafford Loan. You will be required to complete a Promissory Note. This application will be sent with your award package or is available from the Financial Aid Office.

What kinds of problems could cause my loan process to be held-up?
Default status - Students who are in default on a student loan or owe a repayment to any Title IV financial aid program are not eligible to apply for student loans.

• Non-Degree Undergraduates - Students must be admitted to Bellevue University in a degree program to be eligible to apply for student loans. And the classes taken must count toward completion of that degree.
• Enrolled less than half-time (6 credit hours for day students and 4 credit hours for evening students) - Students must be enrolled at Bellevue University at least half-time for the entire loan term.
• What is the interest rate?
  The interest rate is fixed. The interest rate will not exceed 8.25%. The rate is adjusted every July 1^st.

Are there any other costs associated with these loans?
There are two fees associated with receiving subsidized and unsubsidized Federal Stafford loans. The first, an origination fee, is paid to the federal government and currently equals 3% of the loan amount. The second, a guarantee fee, may be charged by the guarantor of the loan and can equal up to 1% of the loan amount. Your Disclosure Statement lists the amount you will receive after the fees are assessed.

Am I eligible for these loans?
To be eligible for these loans you must:
• Have a completed Financial Aid file.
• Complete and return a valid application/promissory note.
• Be enrolled in a degree program.
• Be registered at least half-time for the entire loan period
• Not be in default on any type of student loan
• Not owe a repayment on a federal student grant
• Be in compliance with the University's Standards of Progress
• Attend an Entrance Loan Counseling session (first time borrowers at Bellevue University).

How do I complete a promissory note?
You must complete all sections on the promissory note (references, drivers license number, etc.) and sign the promissory note in ink. You must also complete Loan Request Form that will accompany your award notification. If you have previously completed a master promissory note at Bellevue University you will only receive the Loan Request Form to apply for your loan.

How much can I borrow?
How much you can borrow each year depends on your cost of education, other financial aid received, whether you are considered a dependent or independent student, and grade level. The maximum amounts for dependent undergraduate students are: first year (grade level 1) student is $3,500. The second year (grade level 2) maximum is $4,500, third and fourth year (grade level 3 and 4) $5,500. The maximum amounts for independent undergraduate students are: first year $7,500, second year $8,500, third and fourth year $10,500.

For graduate students the maximum loan amount is $20,500. See the Financial Aid Office for details on grade level definition.

How do I receive my money?
Your loan funds are sent in multiple disbursements. Two disbursements for a non-accelerated undergraduate day (semester) student, and three disbursements for a non-accelerated undergraduate or graduate evening (trimester) student. These disbursements will be made approximately three weeks after the beginning of the term after we have verified your class attendance. If you are an accelerated undergraduate student, two disbursements will be made. One disbursement for each semester of the program for which you are enrolled.

For graduate students in cohort programs, a disbursement is made at the start of each term of the program. PLUS loans are disbursed in multiple disbursements directly to Bellevue University. Bellevue University will mail it directly to the parent with further instructions.

If you are a first time borrower at Bellevue University, you must attend a Loan Counseling session. You will be notified of times and places when we return your loan application to you.

What if I have other student loans?
You will continue to receive information from your lenders about your previous student loans. Your lender will be notified that you are in attendance (you need to be enrolled for at least half time). Bellevue University will provide enrollment information to those lenders to maintain your in-school status while you are in school.

Who can apply for PLUS Loans?
PLUS loans can be taken out by parents of dependent, undergraduate students. Parents may borrow up to the cost of education minus all other aid received. Credit checks are done by the lenders on parents applying for PLUS loans. Repayment of the principal and interest begins within 60 days after the loan has been disbursed.

How do my parents apply for a PLUS loan?
After you have a completed financial aid file, your parents complete the PLUS application and return it to our office for processing. If you are eligible, a PLUS application will be mailed to you with your award package. You must submit the application to Financial Aid office for processing. Your parents may apply for any amount up to your Cost of Attendance (COA).

How is my parent's PLUS loan disbursed?
The PLUS loan will be sent to the Bellevue University business office. The business office will endorse the loan check and send it to your parent. Parents are reminded that the loan proceeds are meant to cover the student's charges at the University.