Stafford Federal Loans
Available as both subsidized and unsubsidized loans. It is important to note that most students are eligible for Stafford Loans regardless of credit history. Stafford Loans are eligible for consolidation, in-school deferment and a six-month post-graduation grace period.
What’s the difference between subsidized and unsubsidized loans?
- Subsidized loans: need-based, interest is not accrued while you are in school and during a six-month post-graduation grace period it will be paid by the government. Your payment will not begin until six months after graduation. The interest rate was lowered in 2008 to 6.8 percent.
- Unsubsidized loans: interest, at a rate of 6.8 percent, begins accruing immediately upon disbursement. Although repayment begins six months after graduation, we recommend students to pay the interest, which can range from $30 to $60, on a monthly basis.
Federal PLUS Loans
Direct PLUS Loans are designed to help graduate students and parents of undergraduate students meet their educational costs. Graduate students and parents may borrow up to the cost of education for the academic year, less any other financial aid received. PLUS Loans are available only to borrowers who do not have adverse credit histories. The interest rate is fixed at 7.9 percent. Repayment begins 60 days after the loan is fully disbursed. Parent borrowers have the option of deferring payment until after their dependent student (Parent PLUS) graduates or drops below half-time enrollment. Graduate students do not enter PLUS repayment while enrolled at least half time.
Federal Perkins Loans
A Federal Perkins Loan is a low-interest (5 percent) loan for both undergraduate and graduate students who demonstrate exceptional financial need. Pacific Oaks College is the lender for Perkins Loans, which are funded with government funds and offered through the Financial Aid Office. Undergraduate students can borrow up to $5,500 for each year of undergraduate study with a total aggregate maximum of $27,500. Graduate students can borrow up to $8,000 per year with a total aggregate maximum of $60,000, which includes amounts borrowed as an undergraduate. Awards depend on financial need and fund availability. Students attending at least half time have a nine-month grace period after graduating, leaving school, or dropping below half-time status before repayment begins.
Private Education Loans
A private education loan is an extension of credit that is not made, insured, or guaranteed under title IV of the Higher Education Act of 1965. These loans are extended to students specifically, in whole or part, for post-secondary educational expenses, regardless of whether the loan is provided by the educational institution that the student attends. Private education loans do not include open-end credit or any loan that is secured by real property or a dwelling. Also, private education loans do not include extensions of credit in which the covered educational institution is the creditor and (1) the term of the extension of credit is 90 days or less; or (2) an interest rate will not be applied to the credit balance and the term of the extension of credit is one year or less, even if the credit is payable in more than four installments.
Private education loans are usually more expensive than federal education loans, since federal education loans offer fixed interest rates where private educational loans typically apply higher, variable rates. Repayment options for federal education loans are typically more favorable than with private education loans. Students are encouraged to carefully weigh these and other distinctions between private and federal educational loans when considering the type of loan product that best suits their needs and situation.
Students who have elected to obtain a private education loan must submit to the private education lender a completed and signed Self-Certification Form. The Office of Financial Aid can provide students with the information requested in Section 2 of this form, to the extent that Pacific Oaks possesses the information.
Preferred Lender Lists and Arrangements
Pacific Oaks College has not entered into a preferred lending arrangement with any lender. Therefore, we do not have, distribute, or publicize a Preferred Lender List.