Undergraduate - Lee University

FINANCIAL INFORMATION 59
United States, a volunteer under the Peace Corps, a member of VISTA or a
full-time law enforcement officer.
Federal Subsidized Stafford Loan Program
This program enables a student to borrow directly from a bank, credit
union, savings and loan association, or other participating lender who is
willing to make educational loans. The loan is guaranteed by a State or private
non-profit agency and insured by the federal government. The maximum
amount which may be borrowed per year is $2625 for freshmen, $3500
for sophomores,and $5500 for juniors and seniors.
The total amount which may be borrowed for undergraduate study is
$23,000. Repayment is made to the lending institution, and payments begin
between six (6) and seven (7) months after the student graduates or leaves
school. The amount of repayments depends upon the size of the debt, but at
least $600 per year must be paid. Deferment from repayment is granted for
up to three (3) years while a borrower serves in the Armed Forces, Peace
Corps, VISTA or while he/she is studying full-time. Information and application
forms are available from schools, lenders, State Guarantee Agencies,
and Regional Offices of the U.S. Department of Education.
Federal Unsubsidized Stafford Loan Program
A new federal law called the Higher Education Amendment of 1992 created
a new program of Unsubsidized Federal Stafford Loans for students who
do not qualify, in whole or in part, for Subsidized Federal Stafford Loans.
The terms of the unsubsidized loan are the same as the terms for subsidized
Federal Stafford Loans, except that the federal government does not pay
interest on the student’s behalf. Monthly or quarterly interest payments
must be made during the time of enrollment in school, during the grace
period, or during any period of deferment or repayment.
Federal PLUS Loan Program
The Federal Parent Loan for Undergraduate Student program enables
parents to borrow a non-deferred loan for an amount up to the Cost of
Education less other aid received. Parents may borrow for dependent undergraduate
students. Forty-five days after the loan is processed, a minimum of
$52.00 monthly payments begin for up to a ten (10) year repayment period.
Applications may be secured from lending institutions or from the Financial
Aid Office.
Tennessee Teaching Scholars Program
The Tennessee Teaching Scholars Program was established by the
Tennessee General Assembly in 1995 to encourage exemplary students to
enter the teaching force. Participation in this forgivable loan program is limited
to college juniors, seniors and post baccalaureate candidates admitted to
a teacher education program in Tennessee. Recipients of the awards incur an
obligation to teach one year in a Tennessee public school for each year the