Admissions & Aid
 

Federal Self-Help (Loans)

Loans are a major form of self-help aid for college students. Money borrowed, including any interest and fees, must be repaid. Repayment usually begins after leaving school. Interest rates vary, depending on the type of loan. A Federal Direct PLUS Loan is available to parents of dependent students to help finance their childś education. Unlike a Direct Loan, repayment begins after disbursement.

Federal Perkins Loan
Eligibility: Loans are awarded by the Molloy College Financial Aid Office from federal funds. No interest accrues while the student is in college. Possible Amounts: The award amount is based on need and funds availability. The current annual interest rate is 5%. Application Process: Students must complete promissory note, entrance interview, and appropriate paperwork annually in order to receive funds. Renewal Requirements: Complete the FAFSA each year by May 1. Repayment Information: Student enters repayment nine months after the student graduates, withdraws or falls below half-time enrollment status.

Federal Subsidized Direct Loans
Eligibility: Available to undergraduate and graduate students. Student must be enrolled for at least 6 credits, and must demonstrate financial need as defined by federal regulations.Possible Amounts: Loan limits depend on grade level in school, and dependency status. Loan has a fixed interest rate (see chart below) and up to 2.0% origination fee.

2010-2011 2011-2012 2012-2013
4.5% 3.4% 6.8%

 

(Chart lists Interest Rates for the Subsidized Direct Loan, as regulated by the Department of Education)

Application Process: Complete the Direct Loan Master Promissory Note by paper or online at www. Studentloans.gov. First-time borrowers at Molloy College must also complete an Entrance Interview at the above website prior to disbursement of Direct funds. Renewal Requirements: Complete FAFSA. Repayment Information: Student enters repayment six months after the student graduates, withdraws or falls below half-time enrollment status.

Federal Unsubsidized Direct Loans
Eligibility: Available to undergraduate and graduate students. Student must be enrolled for at least 6 credits. Financial need is not necessary. Possible Amounts: Loan limits depend on grade level in school, and dependency status. Loan has a fixed interest rate of 6.8% and up to 2.0% origination fee. Interest accrues immediately from the date of issuance of the loan. Application Process: Complete the Direct Loan Master Promissory Note by paper or online at www. Studentloans.gov. First-time borrowers at Molloy College must also complete an Entrance Interview prior to receipt of Direct funds. Renewal Requirements: Complete FAFSA.
Repayment Information: Student enters repayment six months after the student graduates, withdraws or falls below half-time enrolent status.

lFederal Direct Parent PLUS Loan (Undergraduate Student)
Eligibility: PLUS Loans are available to parents of dependent students. Parents who have no adverse  credit history are eligible for PLUS Loans. Student must be enrolled for at least 6 credits. Possible Amounts: Maximum amount of eligibility is determined by the cost of attendance less any financial aid awarded to the student. Loan has a fixed interest rate of 7.9% and up to 4.0% origination and default fee (a rebate from Department of Education may be available, reducing fee to 2.5%). Application Process: Complete the PLUS pre-approval form at www.studentloans.gov. Once approved, you must also complete the PLUS Master Promissory Note at the above website. For additional information contact the Financial Aid Office. Renewal Requirements: Eligible parents must re-apply for the Federal PLUS loan each academic year. Repayment Information: Parents enter repayment 60 days after the loan is fully disbursed. Interest begins to accrue from the date proceeds are sent from the lender to Molloy College.

Federal Direct Graduate PLUS Loan (GradPLUS)
Eligibility: Available to Graduate and professional degree students. Applicants must not have an adverse credit history, and must be enrolled for at least six credits each semester.  Possible Amounts: Maximum amount of eligibility is determined by the cost of attendance less any financial aid awarded to the student.  Application Process: Complete the GradPLUS pre-approval form at www.studentloans.gov. Once approved, you must also complete the GradPLUS Master Promissory Note at the above website. For additional information contact the Financial Aid Office. Renewal Requirements: Eligible students must file the FAFSA each academic year. In addition, the student must have utilized maximum yearly federal graduate Direct Subsidized and Unsubsidized loan eligibility.
Repayment Information: Repayment begins on the date of the last disbursement of the loan. Loan has a fixed interest rate of 7.9%% and up to 4.0% origination fee and default fee (a rebate from Department of Education may be available, reducing fee to 2.5%).

Maximum Annual Loan Amounts
DEPENDENT STUDENT--MAXIMUM ANNUAL LOAN
AMOUNTS (Chart below)

LEVEL BASE AMOUNT ADDITIONAL UNSUBSIDIZED LOAN TOTAL
FRESHMAN $3500 $2000 $5500
SOPHOMORE $4500 $2000 $6500
JUNIOR/SENIOR $5500 $2000 $7000


INDEPENDENT STUDENT-MAXIMUM ANNUAL LOAN AMOUNTS (Chart below)

LEVEL BASED AMOUNT ADDITIONAL UNSUBSIDIZED LOAN TOTAL
FRESHMAN $3500 $6000 $9500
SOPHOMORE $4500 $6000 $10500
JUNIOR/SENIOR $5500 $7000 $12500
GRADUATE $8500 $12000 $20500

 

Aggregate Borrowing Loan Limits
Dependent Undergraduate: $31,000
Independent Undergraduate: $57,500
Graduate Student: *$138,500 ($65,000 subsidized/$73,000 unsubsidized).

*Note: Includes any loans received as an undergraduate

Important Information About Federal Student Loans: All first-time borrowers must complete a federally mandated entrance interview session electronically before receiving any loan proceeds. Students receiving, Federal Direct loans, or Federal Graduate PLUS loan, can satisfy this requirement only at www.studentloans.gov. Students who are recipients of these loans must sign a Master Promissory Note for the first year they are receiving any type of Federal loan. Students receiving Federal Perkins loans will receive information from the Financial Aid Office.