Educational loans provide an excellent source of financial assistance needed to meet the expense of your Faulkner University education. Faulkner offers a variety of loan programs to meet the borrowing needs of our students. The primary source for students is the Federal Stafford Loan Program. Faulkner also awards funds to eligible students from the Federal Perkins Loan Program. Parents may wish to borrow utilizing the Parent Loan for Undergraduate Students (PLUS). Finally, Faulkner recommends the private loan program, when additional funds are required.
Federal Stafford Loans are made in the student's name and can be either subsidized or unsubsidized. A subsidized Stafford loan is awarded on the basis of financial need. This need is determined from the results of the FAFSA. The federal government pays the interest accruing on the loan (subsidizes the interest on the loan) while the student is enrolled at least half time in a degree seeking program. The loan is not based on credit-worthiness, nor is a co-signer required.
An unsubsidized Stafford loan is not awarded on the basis of need. The borrower is charged interest from the time the loan is disbursed (funds forwarded from the lender to the school) until it is paid in full. The student has the option of paying this interest while in school or capitalizing the interest at repayment. Capitalization is the process by which the lender adds the unpaid interest balance to the total amount of repayment. If you choose to pay the interest as it accumulates, you will repay less in the long run.
You may receive a subsidized and unsubsidized Stafford loan for the same enrollment period; however, your maximum loan eligibility may not exceed federally regulated limits.
Applying for a Federal Stafford Loan
Students who are first time borrowers in the Stafford loan program must complete a Master Promissory Note (MPN), a Faulkner University Loan Information Sheet, and a Loan Entrance Interview. Subsequent loans can be made by completing only the Loan Information Sheet.
Master promissory Note (MPN)
The MPN allows students, using only one lender, to complete only one Federal Stafford Loan promissory note during their entire attendance at Faulkner University.
Interest Rates
The interest rate on a Stafford Loan is fixed and may change each July 1st.
If you have subsidized Stafford loans, the federal government pays the interest while you are in school at least half time, during a grace period, or during authorized periods of deferment.
If you have unsubsidized Stafford loans, you will be charged interest from the day the loan is disbursed until it is paid in full, including in-school, grace, and deferment periods. You may choose to pay the interest during these periods, or it may be capitalized.
Annual Loan Limits
| Subsidized Federal Stafford Loan |
Unsubsidized Federal Stafford Loan Amounts are off-set by subsidized Federal Loan eligibility | |
| Dependent Student | Independent Student | |
| 1st year | 1st year- $5500 | 1st year- $9500 |
| 2nd year | 2nd year- $6500 | 2nd year- $10500 |
| 3rd year | 3rd year- $7500 | 3rd year- $12,500 |
| 4th year | 4th year- $7500 | 4th year- $12,500 |
| Graduate | Graduate- n/a | Graduate- $20,500 |
Applicants who qualify for the federal subsidy on an amount less than the limits listed above may borrow the difference under the unsubsidized program. For example, if a first year dependent student is eligible to borrow only $1000 under the subsidized program, he may borrow an additional $4500 under the unsubsidized program to receive a total Federal Stafford Loan equal to $5500 for the first year of undergraduate study.
Aggregate Loan Limits
- $31,000 as a dependent undergraduate
- $57,500 as an independent undergraduate (no more than $23,000 of this can be in subsidized loans)
- $138,500 as a graduate student
Dependent students, whose parents or guardians have been denied a PLUS loan, may borrow up to the increased independent student unsubsidized maximums.
Fees
Borrowers may be charged a guarantee fee of up to 1%. The second fee deducted from the loan is a federally mandated 3% origination fee.
Faulkner University Lenders
You are not required to use a lender from our "Lender List". We have listed lenders that our students have selected over the past couple of years. To obtain more thorough information regarding any of the lenders, check out their websites.
Click here to apply.
Entrance Counseling
Loan proceeds cannot be disbursed to students borrowing for the first time until they complete loan entrance counseling. This is a federal requirement to ensure that students are aware of their borrowing rights and responsibilities.
Timing of disbursements
Federal Stafford Loan proceeds are disbursed near the beginning of the loan period. When the loan period is only one semester or for the summer term, one disbursement is made at the beginning of the semester and another is made after the halfway period of the term. Our general timeline is to apply funds to a student's account within 2 weeks after classes begin.
Loan Fees Deducted
When the lender disburses a student's loan, guarantee and origination fees may be deducted from the total amount borrowed. Each lender will send a disclosure statement advising the student of the amount of proceeds that have been disbursed and the applicable interest rate. Business Office will credit the amount received to the student's account.
Delayed Receipt of Loan Funds
If the student has accepted the loan and the promissory note has been received by the lender, Business Office will defer this portion of their account until the loan proceeds arrive.
Delivery of Funds
The majority of the lenders deliver funds via Electronic Funds Transfer (EFT) directly to Faulkner. The net amount of the student's Federal Stafford Loan will be credited to his account. If this, along with any other aid applied, results in a balance due to the University, the student must pay the difference. If the crediting of the loan proceeds results in a credit balance on the student's account, a refund of the credit balance will be issued by the Business Office. The refund is usually available within 10 days of the disbursment date. The only possible exception is if the credit balance involves a Parent PLUS loan (see PLUS section).
Federal Parent Loan for Undergraduate Students (PLUS)
The Federal Parent Loan for Undergraduate Students (PLUS) is a government sponsored low interest loan obtained through a private lender.
Eligible Borrowers
Either parent may borrow funds for a dependent undergraduate student to meet all or part of the educational expenses. The borrower must be a U.S. citizen or eligible non-citizen and must have good credit. The student must be enrolled at least half time (6 semester hours) and be in good academic progress status.
Loan Limits
Parents may borrow an amount equal to the cost of attendance minus other financial aid for which the student is eligible. There is no aggregate limit on the total amount that may be borrowed.
Interest Rate
The interest rate for the Federal PLUS Program is fixed.
Fees
Borrowers may be charged a guarantee fee of up to 1%. The second fee deducted from the loan proceeds is a federally mandated 3% origination fee.
Faulkner University PLUS Loan Lenders
You are not required to use a lender from our "Lender List". We have listed lenders that our students have selected over the past couple of years.
To apply, click here.
Disbursement
Federal PLUS funds are typically disbursed in two installments-one in the Fall Semester and one in the Spring Semester. Funds will be received via Electronic Funds Transfer (EFT) and automatically posted to the student's account (assuming the student is enrolled at least half time and is otherwise eligible). Funds may be used to pay monies owed the University first, with any remaining funds issued as a check which is mailed to the parent's home address.
Repayment Terms
Repayment begins within 60 days after the final disbursement for each specific loan received. There is no grace period. This means that interest begins to accumulate at the time the first disbursement is made. Payments are made while the student is in school. Exceptions to this (deferment or forbearance) are available. For example, a parent attending college at least half time may defer payments and all parents may choose an interest only repayment option for up to 24-48 months. Please keep in mind that choosing one of these options will increase the overall cost of the loan. The parent borrower must contact the lender for details. Non-payment will result in collection costs, legal fees, and late fees.
The lender will arrange a repayment schedule, providing for a minimum of $600 to be paid annually, and a maximum repayment period of ten (10) years. The promissory note contains detailed terms and conditions of your loan.
Sample PLUS Monthly Repayments
(At maximum interest rate of 9% and for 10-year repayment term)
| Amount Borrowed | *Monthly Payment |
| $10,000 | $126.68 |
| $15,000 | $190.05 |
| $20,000 | $253.40 |
| $30,000 | $380.10 |
Funds for the Federal Perkins Loan program are allocated to the University by the U.S. Department of Education. Eligibility for a Perkins Loan is determined from the information students provide on the Free Application for Federal Student Aid (FAFSA). Loans are made directly to students with Faulkner as the lender. Students must meet selection criteria, which is available in the Financial Aid Office.
Loan Limits
Faulkner offers Perkins Loans to applicants who demonstrate exceptional financial need. Eligible undergraduates may borrow up to a maximum of $5500 per year, to an aggregate total of $27,500 for undergraduate study.
Interest Rate and Payment Terms
The interest rate for Perkins Loans is a fixed rate of 5%. Interest does not accrue while the borrower remains in school at least half time or during a nine month grace period that follows. Repayment begins nine months after the borrower is last enrolled at least half time, and may extend up to a maximum of 10 years with no prepayment penalty.
Timing of Disbursements
Funds are credited to a student's account after a promissory note is signed, a Loan Entrance Interview is completed, and the Personal Confidential Information has been verified.
Delivery of Funds
Awarded funds are credited to a student's account against monies owed the University. If the application of the loan proceeds results in a credit balance, a refund of this balance will be issued in the form of a check by the Business Office.
Loan Exit Counseling
Borrowers are required to receive loan exit counseling when enrolled less than half time or upon graduation. These sessions are conducted by the Business Office.
Department of Education Ombudsman
The Department of Education has an Ombudsman's Office. You may contact this office by:
Internet: http://www.ed.gov/help/landing.jhtml?src=gu or http://ombudsman.ed.gov
Telephone: (877) 557-2575
Mail:
Office of the Ombudsman
Student Financial Assistance
U.S. Department of Education Rm. 3012
ROB #3 7th and D Streets
SW Washington, DC 20202-5144
Private / Alternative Educational Loans
In addition to federally supported and institutional loans, many private lending institutions offer loans to students and families seeking assistance to meet expenses related to attendance at Faulkner. There is an increasing number of these loans and the terms of these loans change frequently, making a comparative listing impossible. When choosing a private loan, our office offers these suggestions:
- review the terms of the program carefully
- read the fine print
- check with the lender for the most current terms
- check minimum/maximum annual loan limits
- compare the combination of interest rate, fees, and repayment terms since these determine the total amount repaid over time
- some offer interest rates that are adjusted monthly, some quarterly, and some annually
- check fees charged
- check for deferred interest and/or principle while enrolled in school
Alternative Loan Programs
Bar Study Loan Program
- If you are attending your last semester at Jones School of Law and need help financing bar exam costs, such as bar review course fees, bar exam deposits and / or fees, as well as living expenses, you can apply for a Bar Study Loan. To apply click here
Keeping in Touch
Always keep your lender informed of any name or address changes. Notify your lender in writing if any of the following events occur before your loan is repaid:
- You change mailing addresses
- You fail to enroll at the school that certified the loan application
- You transfer to another school
- You graduate or withdraw from school
- You change your name