Loans: Federal and Institutional
Unlike scholarships and grants, loans must be repaid. Students are required to sign a promissory note for all loans. Repayment begins after graduation or when a student drops below a half-time registration status.
If a student is borrowing a federal loan at Simmons University for the first time, federal regulations require that she complete loan entrance counseling before any loan funds can be credited to the student’s account.
Federal Perkins Loan: Federal Perkins Loan funds are provided to Simmons University by the federal government and are reserved for the neediest students. Repayment of the principal (at 5 percent interest) begins nine months after the student is no longer enrolled at least half-time. There are no interest charges on a Perkins Loan while a student is enrolled at least half-time. Depending on the amount a student borrows, the repayment term can extend up to 10 years. This loan program has been discontinued by the Federal Government and new borrowers are no longer being accepted.
Subsidized Federal Direct Loan: This federally subsidized loan is made available by the federal government. Students who demonstrate financial need are eligible for this loan. The maximum annual loan for first-year students is $3,500; for sophomores, $4,500; and for juniors and seniors, $5,500. The cumulative maximum for undergraduate study is $23,000. The rate of interest is set annually. The interest is paid by the federal government while the student is enrolled at least half time in a degree seeking program. Repayment begins six months after a student ceases to be enrolled at least half-time. The standard repayment term is 10 years and may be extended through various repayment options.
Unsubsidized Federal Direct Loan: This loan is available to students in addition to the subsidized loan and to students who do not qualify on the basis of need for subsidized loan funds. Eligibility is the difference between the annual maximum and the amount received in subsidized loan. Total loan limits for both subsidized and unsubsidized programs, either singularly or combined, are $5500 for first-year students; $6500 for sophomores; and $7500 for juniors and seniors. Independent undergraduates, and dependent students whose parent is unable to borrow through the Federal Plus Loan Program, may borrow an additional $4,000 (first-year students/ sophomores) or $5,000 (juniors/ seniors) annually. The amount received each year in combination with other awards cannot exceed the students cost of attendance. The rate of interest is set annually. Accrual of interest begins immediately and is capitalized when the student graduates or ceases to be enrolled at least half-time. Similarly, repayment begins six months after a student ceases to be enrolled at least half-time.
Federal Parent PLUS Loan: The Federal PLUS Loan for parents is one of the loan options families can choose to finance their remaining educational expenses. The interest rate and processing fee are set annually. Payment can begin after the loan is fully disbursed for the year or can be deferred until after the student ceases to be enrolled at least half-time. The standard repayment term is 10 years.
Institutional Loans: These institutional loans are awarded by Simmons University based upon financial need. Repayment begins after a student ceases to be enrolled at least half-time. The funds for these loans come from a variety of sources including endowed funds established by donors to provide low-interest loans to students.