Loans

Another form of financial assistance is student loans.

If you qualify for need-based financial aid, it’s likely that your package will include student loans. These loans do not have to be repaid until after you graduate, and they frequently have a maximum aggregate amount.

What loans are available to me?

Our Financial Aid Office will provide complete details on each type of loan listed below if it is awarded.  All federal loan programs require the student to have a complete, valid FAFSA application on file.

Federal Perkins Loans

• Fixed 5% interest rate, long-term loan program for students with exceptional financial need on a first-come, first-served basis.
• Maximum loan up to $4,000 annually, depending on funding availability; average Perkins Loans at Rhodes are $2,000-$3,000 annually.
• First-time borrowers are required to complete loan counseling;  Recipients are required to sign a promissory note (PDF) outlining repayment conditions.
• Payment begins nine months after you cease to be at least a half-time student, with or without diploma.

Federal Direct Loans for Students and Parents

The William D. Ford Direct Loan program (DL) allows students and parents to borrow college funds from the U. S. Treasury with Rhodes acting as the monitor of student eligibility. Interest rates vary based on eligibility and loan origination fees do apply. There are two DL programs:

Federal Direct Loan

• The student is the borrower.
• A completed, valid FAFSA is required.
• Interest rate is fixed at 3.4% (subsidized) or 6.8% (unsubsidized) for the 2011-12 Academic Year.
• There is an aggregate undergraduate limit of $31,000 with no more than $23,000 in Subsidized Loans.  Annual subsidized loan limits of:
  Freshmen (0–29 hours) = $3,500
  Sophomore (30–62 hours) = $4,500
  Juniors/Seniors (63+ hours) = $5,500
• Students must sign a Master Promissory Note.
• First-time borrowers are required to complete loan counseling.

Federal Direct Parent Loan for Undergraduate Students (PLUS) Program

• The parent is the borrower.
• A credit check is required.
• Interest rate is fixed at 7.9%.
• The student for whom the parent is borrowing must have a complete, valid FAFSA application on file.
• Parents must complete an application and a Master Promissory Note. 
• The maximum eligible loan amount is determined by Rhodes according to the formula:
  Estimated cost of attendance less estimated financial aid from all other sources.

Student Loan of the Presbyterian Church (U.S.A.)

• Up to $1,000 annually may be borrowed from the Student Loan Fund administered by the General Mission Board on behalf of the Presbyterian Church (U.S.A.)
• You must have been a continuous member of the denomination for at least one year immediately preceding the date of application.
• Evidence of financial need is required.
• All communications regarding student loans should be addressed to:
  
  Presbyterian Church (U.S.A.)
  Office of Financial Aid for Studies
  100 Witherspoon Street
  Louisville, KY 40202-1396
  Phone: (502) 569-5745
  www.pcusa.org/financialaid/loans.htm