The basis of a financial plan is often one or more of the federally guaranteed loans. Please review the information on student, parent and private education loans.
If you and/or your parent(s) borrow from one or more of the Federal loan programs, information regarding your Federal loans will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by guarantee agencies, lenders and institutions determined to be authorized users of the data system.
The U.S. Department of Education offers affordable fixed interest rate loans to students and parents through the Federal Direct Loan Program. Students should file the FAFSA to determine eligibility. Disbursements are applied directly to your student account at Peabody within 10 days of the start of the semester upon completion of a promissory note and entrance counseling. A small origination fee equal to a percentage of the loan principal will be deducted from the proceeds and reduce the amount of your disbursement. Peabody participates in the following Direct Loan Programs:
For more information about the Federal Direct Loan Program, including borrowing limits, interest rates & calculators, repayment plans, deferment and consolidation, please visit the Department of Education’s Direct Loan webpage at https://studentaid.ed.gov/sa/.
**Beginning June 14, 2017**
Graduate students and parents of dependent undergraduate students can complete the PLUS loan process by following the instructions below. PLUS loan amounts may not exceed the cost of attendance for the academic year less any financial aid the student is eligible to receive. Students must be considered for their full eligibility under the Federal Direct Loan program before a PLUS loan will be certified.
All PLUS Applicants:
Go to https://studentloans.gov .
The Federal Perkins Loan is available on a limited basis to students who demonstrate exceptional financial need. Students must file the FAFSA to determine eligibility. The interest rate is fixed at 5% and is deferred while you are enrolled in school on an at least half-time basis. Repayment begins 9 months after you are no longer enrolled at least half-time. Depending upon availability of funds, the annual maximum award is up to $5,500 for undergraduate study and $8,000 for graduate study. While Perkins is a federal loan, Peabody is the lender and repayment must be made to the university’s loan servicer. Funds are disbursed directly to your Peabody student account no sooner than 10 days prior to the first day of classes once you have signed a promissory note. For more information, please contact the Financial Aid Office.
IMPORTANT NOTE: The federal government is in the process of phasing out the Perkins Loan program. All new students and any returning students who received their first Perkins Loan at JHU after June 30, 2015 will not be eligible for the loan in subsequent years.
The PLITT Loan Fund is available to parents to help families pay educational expenses over an extended period of time at a low 3% interest rate. This fund was specifically designed to help parents of full-time undergraduates pay for college in regular installments, over an extended period of time, at a lower than usual interest rate. Parents cannot have an adverse credit history. Eligibility is established by Peabody after a review of the loan application form. In general, parents are eligible if combined annual adjusted gross income is between $30,000 and $150,000. The application deadline for the PLITT loan program is July 1. For additional information, please contact the Peabody Business Office at 667-208-6520.
Some states offer educational loan programs to residents of that state with interest rates and repayment terms that are equal to or better than the federal student and parent loans. We recommend that students and parents check with their state higher education agencies about the availability of these loans.
Private banks also offer loan programs for educational costs. For most of these loans, the student is the borrower with the parent as a cosigner. Interest rates generally are variable. Peabody recommends that students exhaust their eligibility for federal loans before considering private loan programs. If you are uncertain about your eligibility for federal loans, please contact the Financial Aid Office prior to initiating a private loan application.
For state or private loans, the borrowing limit is the total cost of education for the academic year (as defined by Peabody) less any other financial assistance received.
Peabody does not endorse or recommend any lender, nor does Peabody have any financial interest in any lending institution. Students and their families have the right to select the educational loan provider of their choice. Additional information on factors to consider when securing a private loan is available below.
— From the Project on Student Debt
For more information on comparing lender benefits, see the following website: http://projectonstudentdebt.org/loandiscounts.vp.html
For questions to ask when considering a private loan, see the following website: http://projectonstudentdebt.org/private_loan_questions.vp.html