The Federal Perkins Loan is a federally funded, need-based loan program that is administered by individual colleges and universities. UI&U is your lender under the Federal Perkins loan program. The interest rate is currently 5%, and no interest is charged while you are enrolled on at least a half-time basis and during your grace period. You must begin repayment of principal and interest nine months after you leave school.
At Union Institute & University Federal Perkins Loans are usually awarded to learners who file their annual FAFSA before May 1st and demonstrate exceptional financial need. Federal Perkins Loan funding is limited to the amount collected in the previous award year.
Federal Perkins Loan Master Promissory Note (MPN) Required for First-Time Federal Perkins Loan Recipients
If you have been awarded a Federal Perkins Loan and are a first-time Federal Perkins Loan recipient at Union Institute & University you must complete a Federal Perkins Loan Master Promissory Note (MPN) and Federal Perkins Loan Contact form. If this applies to you, a Federal Perkins Loan MPN and Federal Perkins Loan Contact form will be enclosed with your award letter. You must complete, sign, and return these documents to our office before these funds can be disbursed to your student account. You may download and print the Federal Perkins Loan MPN and the Federal Perkins Loan Borrower Contact forms from our Web site. First-time and recurring Federal Perkins Loan recipients must return the Federal Perkins Loan Borrower Contact form to the Financial Aid Office with each new Federal Perkins Loan award.
Federal Perkins Loan Exit Interview Requirement
All Federal Perkins loan borrowers must complete a Perkins Loan exit interview when you leave school, drop below half-time status or do not register for a subsequent term. Our servicing agent for the Federal Perkins Loan program is University Accounting Service (UAS). UAS will send you an exit interview packet when you graduate, leave school or drop below half-time status.
Federal Perkins Loan Cancellation
Some Perkins Loan borrowers may have all or part of their loans canceled if they:
- teach in specific fields and/or in designated schools in low-income areas;
- work in Head Start programs;
- work providing certain health care services;
- serve as qualified professional providers of early intervention services;
- work in child or family service agencies;
- serve in the military during designated periods of national emergency;
- perform volunteer services with the Peace Corps or ACTION programs; or
- serve as law enforcement or corrections officers.
If a student’s loan is eligible for cancellation, a percentage of the loan will be canceled for each completed year of qualifying service or employment. More information on the Federal Perkins loan program is available on the Federal Student Aid Web site.
The Federal Subsidized and Unsubsidized Stafford loans are part of the Federal Family Education Loan Program (FFELP) for undergraduate and graduate/professional students.You must be enrolled on at least a half-time basis in order to qualify for a Federal Stafford loan. You must also meet all financial aid eligibility requirements.
The Federal Stafford loan interest rate for loans first disbursed on or after July 1, 2006 is fixed at 6.8%. The interest rate remains fixed at 6.8% for graduate students.
The interest rate for undergraduate students is as follows:
| Academic Year | Interest Rate |
| 2008-09 | 6.0% |
| 2009-10 | 5.6% |
| 2010-11 | 4.5% |
| 2011-12 | 3.4% |
| 2012-13 and forward | 6.8% |
Federal Subsidized Stafford Loans
The Federal Subsidized Stafford Loan is a need-based federal loan awarded to undergraduate, graduate, and professional students who demonstrate financial need up to their loan limit. The U.S. Department of Education pays the interest while you are in school at least half-time, for the first six months after you leave school, and during a period of deferment, which is a postponement of loan payments.
Federal Unsubsidized Stafford Loans
The Federal Unsubsidized Stafford Loan is a non-need-based federal loan awarded to undergraduate, graduate, and professional students up to their loan limit. You are responsible for the interest from the time a Federal Unsubsidized Stafford loan is disbursed until it is paid in full. You can pay the interest while you are in school or allow the interest to accrue and have the interest added to the principal amount of your loan. This means the interest will be capitalized.
Annual Federal Stafford Loan Limits Effective
July 1, 2008:
| Academic Grade Level | Dependent Student - Subsidized/Unsubsidized | Independent Student - Subsidized/Unsubsidized | Maximum Subsidized Amount |
| 1st Year | $5,500 |
$9,500 |
$3,500 |
| 2nd Year | $6,500 |
$10,500 |
$4,500 |
| 3rd Year & Beyond | $7,500 |
$12,500 |
$5,500 |
| Graduate | N/A |
$20,500 |
$8,500 |
Undergraduate transfer students please note:your initial loan amount is processed at the first year grade level and upgraded based on your total accepted transfer credits.
Aggregate Federal Stafford Loan Limits Effective
July 1, 2008:
| Dependent Undergraduate Students | $31,000 (no more than $23,000 of which may be subsidized) |
| Independent Undergraduate Students or Dependent Students Whose Parent is Ineligible for PLUS | $57,500 (no more than $23,000 of which may be subsidized) |
| Graduate/Professional Students | $138,500 (no more than $65,500 of which may be subsidized) |
After you have completed the annual FAFSA and received your financial aid award letter new learners at UI&U must complete these three steps in order to borrow a federal Stafford loan:
Step 1. Choose a Lender
Step 2. Complete Entrance Counseling Session
Step 3.Complete a Federal Stafford Loan Master Promissory Note (MPN) and entrance counseling session
In order to borrow a federal Stafford loan you must choose a lender that participates in the Federal Family Education Loan Program (FFELP). Federal regulations requires colleges and universities to certify federal student loans without regard to the borrower's choice of lender or the guarantee agency used by the lender. YOU MAY CHOOSE ANY LENDER THAT PARTICIPATES IN THE FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP). We recommend that you visit lender web sites for the latest information on their benefits and services. Union Institute & University does not have a preferred lender list and does not endorse any lender. Click here for a list of lenders that have made loans to our learners and parents in the past three to five years.
Online Federal Stafford Loan Master Promissory Note (MPN) and Loan Entrance Counseling Session
First-time borrowers and new borrowers at Union Institute & University must complete a Federal Stafford Master Promissory Note (MPN) and an entrance counseling session. The loan entrance counseling session is required and provides useful tips and tools to help borrowers understand their loan responsibilities.
You may complete your Federal Stafford Loan MPN and entrance counseling session online:
Click here to be directed to the Sallie Mae Web site to register and set up an account, or
Click here to be directed to the VSAC web site (Vermont residents only) to register and set up an account.
Note: You may also complete a Master Promissory Note (MPN) and credit check online from your lender or guarantee agency's home page.
Follow the steps to complete Stafford/GRADPlus entrance counseling. At the conclusion of the session, you will be presented with a confirmation screen that you should print for your records. Once you have completed the entrance counseling session, you will be directed to complete your Master Promissory Note (MPN). The Office of Financial Aid will receive electronic notification that you have completed this process. Note: If you do not wish to complete your MPN and entrance counseling online, you may download and print a paper Federal Stafford Loan MPN and paper Loan Entrance Counseling form from our Web site.Your completed paper MPN must be mailed to the financial aid office for continued processing. Your completed loan counseling form can be faxed or scanned to the financial aid office.
Federal Plus Loans are part of the Federal Family Education Loan Program (FFELP). There are two types of Federal PLUS loans: (1)Parent PLUS Loans and (2) Graduate PLUS Loans.
The Parent PLUS loan allows parents of dependent, undergraduate students to borrow up to the cost of attendance, less any financial aid. Beginning with the 2006-07 year, the interest rate on the Federal PLUS loan is fixed at 8.5%.Under the Parent PLUS loan program, a parent can borrow up to the full cost of education, less other financial aid received. You may complete your Federal PLUS Loan MPN and credit check online:
Click here to be directed to the Sallie Mae Web site to register and set up an account, or
Click here to be directed to the VSAC web site (Vermont residents only) to register and set up an account.
Graduate and professional students may borrow under the Federal PLUS loan program. A credit check and GRADPlus loan entrance counseling session are required. The interest rate on the Federal Graduate PLUS loan is fixed at 8.5%. You may be eligible for a Graduate PLUS loan if you are enrolled in a graduate/professional degree program on at least a half-time basis. (Note: Learners enrolled in the pre-cohort Doctoral Program at UI&U must be enrolled full-time to receive a Graduate PLUS loan.) With a Graduate PLUS loan, you may borrow up to the full cost of education, less other financial aid received. Graduate learners may complete their credit check, Federal PLUS Loan MPN and Stafford/GradPLUS entrance counseling session online:
Click here to be directed to the Sallie Mae Web site to register and set up an account, or
Click here to be directed to the VSAC web site (Vermont residents only) to register and set up an account.
Loan exit counseling provides information about repayment of your student loan which usually begins six months after you graduate, leave school or drop below half-time enrollment. Loan exit counseling is a requirement for borrowers under the Federal Stafford and Federal GRADPlus loan programs. You may complete your loan exit counseling session online at USAFunds or MappingYourFuture
Note: you may also download, print and complete a paper loan exit counseling form from our web site - click here.
You can consolidate or combine multiple federal student loans with various repayment schedules into one loan called a Consolidation Loan, making a single monthly payment. With a consolidation loan, your monthly payments might be lower, you can take a longer time to repay (up to 30 years), and you will receive a fixed interest rate. There may be some disadvantages to obtaining a consolidation loan, such as the payment of more interest because you have a longer time to repay the loss of some borrower benefits such as interest rate discounts, principal rebates, and the loss of some discharge or cancellation benefits.
Talk to the holder of your loan(s) and carefully review your options before you consolidate. You will receive information about loan consolidation during your entrance and exit counseling sessions. Once a consolidation loan is made, it cannot be revoked for any reason because the underlying loans that were consolidated no longer exist. You can read more about loan consolidation in the publication Repaying Your Student Loans. You can also request a paper copy of this publication by contacting our office.
There are many private or alternative student loan sources to help with your educational costs. Most private or alternative student loan programs consider your credit history. have a higher interest rate than federal student loans and may require you to have a co-signer. Lenders provide different types of private education loans depending on the student's level of study .Private loans are offered by private lenders and there are no federal forms to complete