Loans and Work Study
Students who anticipate a need to supplement their financial resources through loans or college work-study employment must complete a Free Application for Federal Student Aid form. Students should complete the FAFSA on line at http://www.fafsa.ed.gov. Students must indicate Duke's school code (E00165) in order for the Graduate Financial Aid Office to obtain the information electronically. In addition to the FAFSA students should complete a Stafford Loan Authorization Form. It is imperative that you indicate a lender of your choice on this form. You can obtain information about Duke's preferred lenders on the Recommended Lender link. The Stafford Loan authorization form should be mailed to Financial Aid Coordinator, Box 90061, Graduate School, Duke University, Durham, North Carolina 27708-0061 or faxed to 919-668-0434, as well as inquiries concerning financial aid.
Students who are enrolled at least half time, who are U.S. citizens or permanent residents, and who meet the federal criteria for need are eligible for Stafford Loans under the Federal Family Education Loan Program.
Summary Statement of Student Lending Principles
Duke University has established a set of publicly available principles and policies to govern educational lending practices for undergraduate, graduate and professional students. These principles emphasize that lending practices proceed from a commitment to the best interests of our students, that we support students' right to choose their lenders and that neither Duke nor its employees accept financial payments, goods or services of material value from lenders. All employees involved in financial aid and student lending are subject to a rigorous conflict of interest policy. Administrators may serve as unpaid members of lender advisory boards in order to help shape the products and services that will best meet the needs of our students; in such cases, Duke pays all costs associated with that service.
For more information on the principles and policies, visit Duke's financial aid website at: http://www.finaid.duke.edu/documents/general_forms/Duke%20Lending%20Principles.pdf
Loans
Federal Loans and College Work Study funds may be available to graduate students on the basis of financial need. Financial need is determined by subtracting from the standard student budget the expected student contribution and any other financial aid awarded. The difference can be funded with federal need based financial aid. Departmental fellowship and scholarship awards are considered financial aid in the needs analysis.
Federal loans available to graduate students are:
Federal Subsidized Stafford Loan - fixed interest rate 6.8% - federal government pays interest on loan while student is in school and 6 month grace period after student graduates or ceases to be enrolled at least half time - maximum of $8,500 per academic year
Federal Unsubsidized Stafford Loan - fixed interest rate 6.8% - student is responsible for interest while in school by making interest payments or interest can accrue- accrued interest is capitalized (added to principle) at the time of repayment - maximum of $12,000 per academic year beginning July 1, 2007.
Carl Perkins Loan - fixed interest 5%- federal government pays interest on loan while student is in school and 6 month grace period after student graduate or ceases to be enrolled at least half time - maximum of $6,000 per academic year but loan amount is based on the funding allocation to the Graduate School
Graduate PLUS Loan - New loan program available after July 1, 2006- fixed interest rate of 8.5%- good credit required (no adverse credit) - student is responsible for interest on loan while in school and loan repayments begin when student graduates or ceases to be enrolled at least half time-may borrow amount needed to meet student budget
Private Loans:
Alternative student loans -good credit (must meet FICO requirement set by lender)-variable interest rate depending on lender product-in school deferment varies by lender-student may borrow amount needed to meet student budget
Federal Consolidation Loans:
A Federal Consolidation Loan - allows students to combine all federal loans into one loan-interest is fixed and is based on the weighted average of the interest rates of all loans being consolidated, rounded up to the nearest 1/8% not to exceed 8.25%-student must have fully disbursed federal loans, must have graduated, left school or be enrolled less than half time and must meet the minimum balance requirements (set by each lender) in order to consolidate-students with multiple lenders can choose the lender to borrow the consolidation loan while students with multiple loans with one lender will consolidate with that lender-there are benefits and drawbacks to loan consolidation and students must measure these carefully considering their personal circumstances when looking at loan consolidation
Students must complete the FAFSA (Free Application for Federal Student Aid) in order to apply for the federal student aid programs. This can be done on line at www.fafsa.ed.gov and the Graduate School's school code is E00165. The FAFSA should be done at the time the student completes that year's income tax return. The graduate school financial aid office begins working on academic year loans in early June so the April 15 date is not too late to complete the FAFSA. Award notices concerning student loans will be sent out in July and early August.
In addition to the FAFSA students must complete a Stafford Loan Authorization form for the graduate school financial aid office. This form can be mailed to: Graduate School Financial Aid, Box 90061, Durham, NC 27708 or faxed to 919-668-0434.
Students borrowing for the first time from Duke must also complete loan entrance counseling on line at www.mapping-your-future.org . Complete the Stafford/Perkins Combined Loan Entrance Counseling to meet Duke's requirement. Loans will not be processed until the loan counseling is complete and we receive the confirmation number from mapping your future. Questions and inquiries concerning financial aid should be sent to the Financial Aid Coordinator.
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