Federal Loans

Loans

While private loans are available to U.S. citizens and naturalized persons attending U.S. universities, most domestic students apply for federal loans. Congress recently passed two laws that will affect repayment plans.

The College Cost Reduction and Access Act that created the new Income-Based Repayment program was signed into law in 2007 to help make student loan payments more manageable. Recent graduates can calculate their payments based on their current incomes on the Department of Education's Web site. However, the Department of Education warns that making smaller loan payments may actually increase the amount that borrowers will need to pay back in the long run because interest will accrue for a longer period of time. On the other hand, if the borrowers meet certain criteria, their remaining student loan debt can be forgiven after 25 years.

The Income-Based Repayment program is designed specifically for those students who have high loan amounts and low income. To continue to qualify for the repayment plan, every year borrowers will have to provide information on their income and family size. When income increases, the payments will revert back to the standard amounts.

For more information on both these Acts, visit the Department of Education’s website.

Please visit the financial aid website to find out more information about the two federal loans Brandeis offers, as well as instructions on how to apply.

Stafford Loans:

Stafford loans are guaranteed educational loans. There are two types of Stafford loans: subsidized and unsubsidized. Subsidized loans do not accrue interest during a student’s enrollment in an academic program, and are capped at $8,500 per year. The amount of subsidized loan that a student can receive is based on eligibility for a Stafford loan and your estimated family contribution (determined by the FAFSA online application). Unsubsidized loans begin accruing interest at the point of disbursement. The maximum amount of total (both subsidized and unsubsidized) Stafford loans that a student may request in one academic or calendar year is currently $20,500. More detailed information about Stafford loans (interest rates, repayment schedule, origination fee, etc.), as well as the required online application, can be found at www.fafsa.ed.gov. Stafford loans are guaranteed loans. The only two conditions that would preclude a student from Stafford loan eligibility would be (a) if a student has reached his or her maximum lifetime allowed (currently $138,500), or (b) if a student is in default status for a previously awarded Stafford loan. To request a Stafford loan, an admitted student must complete the online FAFSA application and submit a Brandeis University Stafford Loan Request Form to the Heller School Director of Financial Aid.