FFELP PROGRAM
Federal Family Education Loan Program (FFELP)
The Federal Family Education Loan Program consists of
Education loans provided by private lenders and guaranteed
by the federal
government. Subsidized and Unsubsidized
Federal Stafford Loans
and Parent PLUS loans are included
in this program.
Federal Stafford Loans are for students borrowing on their own
behalf.
There are two types of Stafford Loans -- subsidized and
unsubsidized.
Subsidized means the government makes the
interest payment on
your student loan while you are in school,
grace period or deferment. Unsubsidized loans require that
you are responsible for interest payments, even while in school.
Federal PLUS Loans are for parents borrowing on behalf of
a dependent child. Except in extreme circumstances, the
FAFSA
application determines
if the student is dependent or
independent. Generally, undergraduate students under 24 years
of age are considered dependent.
General Requirements
All students applying for a Federal Stafford loan and parents
applying for a Federal PLUS loan must be U.S. citizens or
eligible non-citizens.
All students must be enrolled on at least a half-time basis to
qualify for a Federal Stafford loan or to have their parents
qualify for a Federal PLUS loan.
Students must attend classes and maintain satisfactory academic
progress to continue being eligible for their loans.
Loan Application Procedures
To apply for the Stafford and parent plus loans:
If you have had student loans previously, please contact our office for assistance in setting up your 2008-2009 loans. If you are a first time borrower, you may utilize our online Lender Comparison tool to help you choose your lender and apply for your loan by linking to the following address:
http://www.customschool.com/lenderlist/artacademy/layout.asp
Several lenders are listed in the comparison tool, but you are welcome to use any lender of your choice. If you are a transfer student who has used a previous lender for you education loans, it is to your advantage to continue using that lender.
The Lender Comparison Gateway provides separate tabs for Stafford loans, Parent Plus loans, and private alternative loans. Details on each loan are provided on the right, and you can apply for your loan directly from this site. Subsidized Stafford loans have a fixed rate of 6%, and unsubsidized Stafford loans are at 6.8%. The Parent Plus loan carries a fixed rate of 8.5%. The APR's shown on the comparison tool represent the best possible rate you could achieve once you are in repayment.
Once you have completed the online application process, your Master Promissory Note remains active for 10 years, which means that you should not have to complete it again during your education career.
Disbursement of Stafford loan funds:
• The lender sends the funds to the Art Academy of Cincinnati.
• The Art Academy of Cincinnati applies the loan funds to the
student’s
tuition and fees charges.
• For Stafford and alternative loans, the Art Academy of
Cincinnati returns any excess funds to the student in person
at our Business Office.
Disbursement of Parent Plus loan funds:
• The lender sends the funds to the Art Academy of Cincinnati.
• The Art Academy of Cincinnati applies the loan funds to the
student’s tuition and fees charges.
• The Art Academy of Cincinnati mails any remaining funds to the
parent at the address listed for the parent in the Business Office.
