Federal loan programs are generally low interest loans for education, which are available to students and families. Loan programs carry a repayment obligation and include the following:

Federal Perkins Loan
Consideration for Perkins Loan Funds is given at the time Dana College receives the processed FAFSA results. Amounts vary with eligibility and are dependent upon federal funding. While the maximum annual loan limit is $4000, most loans range from $500 - $2,500. The interest rate is 0% while in school and 5% when in repayment.

Some students—including those teaching in specified geographic locations or subject areas, those who join the Peace Corps, and those in certain law enforcement positions—may be eligible to have a portion of their Federal Perkins Loan canceled for each year of service. Contact the Business Office for more information on Perkins loan cancellation.

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Federal Subsidized and Unsubsidized Stafford Loans
These loans are received through a partnership with local lenders. Students must complete the FAFSA and a Federal Stafford Master Promissory Note to apply.

The maximum annual loan limits may not exceed $2,625 for Freshmen, $3,500 for Sophomores, $5,500 for Juniors and Seniors. Specific eligibility is determined by the Financial Aid Office and is indicated on the Award Letter.

While the student is enrolled at least halftime in a post secondary school, interest on a Federal Subsidized Stafford loan in 0%. Once the student withdraws, graduates, or drops to less than half-time status, the variable interest rate will not exceed 8.25%.

Students that don’t qualify for a Federal Subsidized Stafford Loan may qualify for the Federal Unsubsidized Stafford Loan. The main difference between the two loans is that the government does not pay the interest on the Unsubsidized Stafford while the student is enrolled in school. Effective July 1, 2003 the in-school interest rate for the Unsubsidized Stafford is 2.82%. (91 day Treasury Bill plus 1.70%) Like the Federal Subsidized Stafford Loan, a student’s annual variable interest rate will not exceed 8.25% when in repayment.

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Federal PLUS Loan
Parents of dependent students may borrow up to the cost of education, less other financial aid, under this loan program. Interest rates vary annually, but will not exceed 9%. Payments of interest and principle begin 60 days after disbursement. Effective July 1, 2003 the interest rate is 4.22%. (91 day Treasury Bill plus 3.10%)

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This page was last modified on February 9, 2006