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Federal Direct Parent (PLUS): This loan ismade to parents of dependent undergraduatestudents. The student must meet the sameeligibility requirements as listed for the FederalDirect Stafford Student Loans. The maximumamount a parent can borrow per year per studentcannot exceed the cost of education less all otherfinancial aid received. A credit check is requiredand a promissory note must be signed. Theinterest rate is variable but capped at 9.00 percent.There is no grace period for repayment unless theparent borrower is also a student enrolled at leasthalf-time. Students must complete the FAFSA todetermine parent eligibility for the PLUS loan.NOTE: If the parent borrower is denied thisloan, the dependent student mayborrow additional funds under theunsubsidized Federal Direct StaffordLoan for independent students, not toexceed the yearly or aggregate totals forthe independent loan program. (FED)Each type of Federal Direct Stafford Loandescribed here as well as the Federal Direct PLUSloan will have an origination fee of 3 percent andcould have an insurance fee of up to 1 percentdeducted from the loan amount guaranteed.The loan must be guaranteed by while thestudent is still enrolled and eligible. SFS willrequest the loan funds for each term or semesterfor which the student is enrolled by ElectronicFunds Transfer (EFT) or paper checks. Thefunds are sent to Park University and disbursedto the student’s account after the enrollmentadjustment period has ended and/or the student’srequired paperwork on file is complete.NOTE: Any break in the dates ofenrollment reported on thepromissory note to the lender willcancel any remaining disbursementsof the loan! Example: Studentindicates their dates of enrollmentwill be 8/19/13 to 5/11/14. Thiswould be for Fall I, Fall II, SpringI and/or Spring II. Student decidesnot to enroll in the Fall II. Any loandisbursements that Park Universityreceives for Fall II, Spring I and/or Spring II will be returned. Ifthe student plans to reenroll inSpring I, Spring II or Summer, s/he must contact SFS and requestto be repackaged for the remainingterms of enrollment. SFS will thenoriginate a new loan reflecting the newenrollment dates.84UNDERGRADUATELOAN PROGRAMS FORINDEPENDENT STUDENTSFederal Direct Stafford (subsidized):Subsidized means the interest on the loan ispaid by the government while the student isin school. This loan has the same interest ratesand the student must meet the same eligibilityrequirements as the dependent subsidizedFederal Direct Stafford Loan. The maximumannual amount an independent undergraduatestudent can borrow is:• Year 1 - $3500• Year 2 - $4500• Year 3, 4, 5 - $5500Funds are not to exceed an aggregate limit of$23,000. The combined total of undergraduateand graduate subsidized loans cannot exceed$65,500. (FED)Federal Direct Stafford (unsubsidized):Unsubsidized means the student is responsiblefor the interest on the loan amount while inschool. Students can (1) pay their interest whilein school, (2) pay their interest during their sixmonth grace period, or (3) postpone interestpayment and have it added to the principle whenrepayment begins after the six-month graceperiod ends. This loan has the same eligibilityrequirements and interest rates as the dependentunsubsidized Federal Direct Stafford Loan. Thecombination of subsidized and unsubsidizedFederal Direct Stafford Loans cannot exceed:• Year 1 - $9500• Year 2 - $10,500• Years 3, 4, 5 - $12,500The maximum aggregate total for independentundergraduate and graduate students cannotexceed $138,500. (FED)STUDENT EMPLOYMENTEmployment awards may be included inoffers of financial aid to assist financingeducational expenses. There are numerousParkville Daytime Campus Center employmentopportunities and limited off-campusemployment opportunities.Federal College Work Study Program- Federal CWSP is subsidized by the federalgovernment. Eligibility for this programis based on calculated financial need asdetermined by the FAFSA. First time workstudystudents must complete an employmentapplication. The employment application isavailable online or in the Student Employmentoffice. Additional information can be found atwww.park.edu.