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Self-Help Aid
 The
Federal Stafford Loan Programs
The Secretary of Education established this loan to assist students and parents
in meeting the cost of the student's attendance at a post-secondary school. The
Federal Stafford Loan Programs have a fixed interest rate of 6.8 %.
Suggested
Lenders
Lees-McRae
College has established a working relationship with the following lenders.
Before deciding on a lender, we recommend that you contact these lending
organization prior to completing the Master Promissory Note. For those students
who have previously attended college, we strongly encourage you continue to use
the same lender throughout your educational career.
Federal
Subsidized Stafford Loan Program
Under the Federal Subsidized Stafford Loan Program, your lender
subsidizes the interest while the borrower is in an in-school, grace, or
deferment period. These loans are based on financial need and range from
$3,500 to $5,500 per academic year. The maximum loan amounts are
$3500 per year for freshmen, $4500 per year for sophomores and $5500 per
year for juniors and seniors. Repayment begins six months after you
leave school. On a subsidized loan, the interest accrued is paid
by the federal government.
A dependent or independent undergraduate may
receive a subsidized loan.
Students who apply
for a Federal Stafford Student Loan must complete Entrance Loan
Counseling in order to receive a student loan at Lees-McRae College.
Students scheduled to graduate, transfer, or withdraw are required to
complete Exit Loan Counseling. The appropriate links are provided
below:
Federal
Unsubsidized Stafford Loan Program
Under the Federal Unsubsidized Loan Program, interest accrues monthly.
An independent undergraduate or a dependent student whose parents are
unable to get approved for a Federal Parent PLUS Loan may receive an
unsubsidized loan.
Federal Stafford Loan Cancellation
for Teachers
Students may be
able to cancel up to $5,000 of their Federal Stafford Loans if
they are
teaching in a low-income school and they are a "new borrower."
Find information and eligibility requirements at
the site provided above.
Nursing Education Loan Repayment
Program (NELRP)
This
Program offers registered nurses substantial assistance to repay
educational loans in exchange for service in eligible facilities
located in areas experiencing a shortage of nurses. Information
and eligibility requirements are available at the site provided
above.
Federal Parent PLUS
Loan Program
Federal Parent PLUS Loans enable parents with a good credit history to borrow to
pay the educational expenses of their student who is a dependent undergraduate
enrolled at least half time (six credit hours). The yearly limit on the Federal
Parent PLUS Loan is equal to the cost of education minus any other financial aid
received for the year. The interest rate is 8.25 fixed. While parents
can borrow a Federal Parent PLUS Loan through any lender they choose, the
Financial Aid Office at Lees-McRae recommends application through the following
links:
Federal
Perkins Loans
These federal loans are made to students with exceptional financial
need. Students may borrow up to $4,000 per year. No principal is due on
the loan or interest charged while the student is enrolled at least
half-time and for nine months after studies are terminated. Students may
have up to ten years to repay a Federal Perkins Loan at 5 percent
interest. The Federal Perkins Loan may be obtained if need
remains after the Federal Stafford Loan is awarded. Students may borrow
up to their need subject to availability of funds.
Borrowers who become full-time teachers in certain elementary or
secondary schools may be qualified for cancellation of part or all of
their loan debt.
Alternative
Loans
Alternative Loans are privately-insured, credit-based loans designed to
help students meet post-secondary education costs not met by other forms
of financial aid. It is recommended that all students who are United
States citizens or eligible noncitizens take advantage of all available
federal aid resources before applying for an alternative loan. We
highly recommend a student speak to a customer service representative
with the lending institution in order to discuss interest rates,
repayment options, and any other resources that might better fit the
student's needs. Some alternative loans are listed below:
North Carolina Prospective Teachers Scholarship Loan
Available to
any resident of North Carolina interested in preparing to teach in North
Carolina public schools. The loan is forgiven if the student teaches in a North
Carolina public school after graduation. Application can be obtained by writing
the Prospective Teachers Scholarship Loan Fund, State Department of Public
Instruction, Raleigh, NC 27611. Applications are also available in the
Lees-McRae Office of Financial Aid.
Federal/Institutional Work Study Program
This is an
employment program designed to provide a student the chance to pay part
of their educational expenses by working at a part-time job. To be
employed under this program, the student must:
-
Be enrolled or
accepted for enrollment
-
Show evidence
of financial need
-
Be capable of
maintaining good academic standing while employed under this
program.
Campus employment of 8-10
hours per week earning minimum wage is available to all students as long as
funding is available.
This award is not deducted from the student's
charges during the billing process.
The amount
earned can be used to help defray the student's educational expenses.
Contact the Office of Financial Aid for more details.
Preference will be given to students of exceptional financial need.
Limited funds are available for campus jobs to students who do not meet
the above criteria.
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