Federal Stafford Loan—Subsidized and Unsubsidized
Subsidized loans are awarded based on financial need, and while you’re enrolled in school, the federal government pays the interest on your loan. For detailed information and current interest rates, visit www.studentaid.gov.
An unsubsidized loan is awarded to students who don’t qualify for need-based subsidy or are independent students. The government does not pay interest on this loan and the student may choose to pay on interest as it accrues or have it added to the principle balance quarterly. The interest rate is fixed for the life of the loan.
Independent students can receive additional unsubsidized Stafford Loan funds. (Available to students who don’t have access to the Parent PLUS Loan. This typically occurs when a parent is denied for the PLUS Loan.)
A note about Stafford Loans: Your ability to borrow through the Federal Stafford Student Loan Program increases as you progress through your four years at Gordon College. Some years a portion of your need-based Gordon grant may be replaced by this increased loan eligibility.
This is a college-administered program that combines money from both the federal government and the College and is designed for students with a high level of financial need. Perkins loans complement the federal Stafford Loan and are not a replacement of Stafford. The interest rate is fixed at 5% and students do not need to pay the interest that accrues while enrolled at least half time (6 credit hours or more) or during the nine month grace period (a grace period begins when a student graduates or is taking less than 6 credit hours during a semester). If you qualify for this loan, we’ll send you instructions on how to apply.
Two types of parent loans are available - the federal Parent PLUS and alternative parent loans. Parents can borrow up to the cost of attendance minus any other financial aid awards. The parent is solely responsible for repayment of these loans. Repayment options include immediate repayment and interest-only payments while the student is in school.
Alternative Student Loans
These loans are acquired through your bank,credit union, or state agency (but if you want, you can look at our preferred list). Make sure you pay attention to interest rates and how they are calculated, repayment terms, and the opportunity to defer if your student wants to attend graduate school.