Financial Aid 2010-2011 - Northwest Mississippi Community College

what ofloans types are
available ?
Federal Stafford loans are a major form of self-help aid. These funds are to be used for
education purposes, which include tuition, books, supplies, room, board, and transportation.
Unlike scholarships and grants, these funds do have to be paid back. There are
several repayment schedules, but most begin six months after graduation or withdrawal
from school or when the student becomes half-time, falling below six credit hours. Interest
rates also vary.
Federal Subsidized Stafford Loan
Loans through commercial lending institutions are available to undergraduate students who demonstrate financial
need. Borrowing limits vary according to classification and dependency status. The federal government
pays the interest for the student until repayment begins. The interest rate is fixed at 5.6 percent.
Federal Unsubsidized Stafford Loan
Loans through commercial lending institutions are available to students without regard to financial need.
Borrowing limits vary according to classification and dependency status. Annual eligibility is limited to the
cost of attendance minus other financial aid the student receives. Even though repayment does not begin
immediately, the student is responsible for interest charges that begin to accrue immediately. The interest
rate is fixed at 6.8 percent.
Federal Parent Loan (PLUS)
Parent loans enable parents with good credit histories to borrow to pay the education expenses of their
dependent undergraduate children. Annual eligibility is limited to the cost of attendance minus other financial
aid the student receives. Financial need is not a requirement for this program. Repayment and accrual of
interest begins immediately. Students must file the FAFSA to establish eligibility for the loan. The interest rate
is fixed at 8.5 percent.