Loans
Federal Stafford Loans
The Federal Stafford Loan is available to undergraduate students to assist with paying college costs. The type of Stafford Loan a student is awarded is based on results of the FAFSA (Free Application for Federal Student Aid). If subsidized, the loan is based on need and interest is paid by the federal government while the student is enrolled at least half-time. If unsubsidized, student is responsible for the interest accumulated on the loan while still in school. Repayment of the principal is deferred with either loan type. The interest rate is fixed at 6.8%. Loan limits are as follows: First-year - $3,500, Sophomore - $4,500, Junior and Senior $5,500. Loan repayment begins six months after graduation or dropping below half-time status. Loan eligibility will be provided on the student's Award Notification each year.
Federal PLUS loans (Parent Loan for Undergraduate Students)
Available to parents of undergraduate students with good credit histories. Interest rate is fixed at 8.5%. Annual limit is the cost of education minus any other assistance received. Repayment begins within 60 days of the final disbursement.
Federal Perkins Loans
Amount varies up to $4000. Awarded to students based on financial need as determined by the FAFSA. Perkins Loan is subsidized while in school. Interest rate is 5%. Repayment begins 9 months after graduation or dropping below half-time status. If eligible, Perkins Loan will be listed on the student's Award Notification.
Alternative/private loans for students
Alternative/private loans are available to students who meet credit criteria and, in most cases, have a credit-worthy co-signer. Augustana encourages all students to borrow the Federal Stafford Loan before applying for an alternative/private loan. Interest rates are variable and are based on either the Prime or LIBOR rate. Interest accrues while the student is enrolled with repayment beginning 6 months after graduation.
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