Southwest Baptist University

Federal Loan Programs

Follow these Steps to apply for a Stafford Student Loan

First Time Borrowers:

  1. File a FAFSA each academic year. The Department of Education requires a completed FAFSA before a student is eligible for a Stafford Loan.
  2. Complete the SBU Student Loan Data Sheet that is included in your award letter package and return it to the Financial Aid Office. After returning the data sheet your loan will be certified by SBU.
  3. Complete entrance counseling. First time Stafford Loan borrowers must complete entrance loan counseling before the loan will be certified. Before graduation, transfer to another institution, or otherwise separating from the university, Federal Stafford Loan borrowers must complete exit loan counseling.

 

Returning Borrowers:

  1. File a FAFSA each academic year. The Department of Education requires a completed FAFSA before a student is eligible for a Stafford Loan.
  2. Complete the SBU Student Loan Data Sheet that is included in your award letter package and return it to the Financial Aid Office.
  3. After returning the data sheet your loan will be certified.

 

Selecting your Lender:
Selecting your Stafford Loan lender may be one of the first steps you take in building your credit history. There are literally hundreds of lenders to choose from and you need to make sure the lender you choose is right for you.  We have developed a list of lenders you may want to consider. Remember you are not limited to this list and may use any lender you choose.  Our lender list is reviewed annually and is based on a review process that encompasses but is not limited to the following criteria:

You may visit our list of lenders at www.mohela.com/loanconnect/sbu/. Once on this page you may run a comparison of the lenders listed and also look at the individual lenders for benefits they offer. You may also scroll to the bottom of the page to access the National Lender List to see all available lenders nationwide. Once again remember you have the right to borrow from the lender of your choice.

Loans require repayment.
Detailed information about repayment of federal loans, including borrowers' rights and responsibilities, is available in The Student Guide . You have the right to cancel all or a portion of your federal loans. Instructions are stated on your promissory note.

Enrollment Requirement:
To receive each federal loan named on this page, except the Federal Consolidation Loan, you must be enrolled on at least a half time basis. At the undergraduate level, six to 11 credit hours is half time and 12 or more credit hours is full time. At the graduate level 3 hours a semester is half time and 6 hours a semester is full time.

Subsidized and Unsubsidized Loans

Federal Stafford Loans are either subsidized or unsubsidized.

The subsidized loan has a fixed interest rate, and is need-based. The federal government pays the interest on the loan during: (1) your enrollment in school on at least a half time basis, (2) a six-month grace period immediately following your separation from school, and (3) a deferment, which is a temporary, authorized time when your payments may be postponed.

The unsubsidized loan which also has a fixed interest rate is non-need-based. "Unsubsidized" means the federal government does not pay the interest to your lender on your behalf. You are responsible for paying all interest on the loan. Interest is charged beginning the day the loan is paid to you until the day the loan is repaid in full. You may choose either to pay the accumulating interest while you are in school, during the grace period for the principal, and during a deferment of the principal or to have the unpaid, accumulating interest capitalized, i.e., added to the principal balance of the loan. Note: If your loan interest is capitalized, it will increase the amount you have to repay.

Eligibility Rules and Loan Limits

Your grade level and whether you are a dependent or an independent student limits the amount you are eligible to borrow annually in Stafford Loan funds. You cannot borrow more than your financial need or the cost of attendance at Southwest Baptist University.

Dependent Undergraduates
  Pre-Nursing, $2,625, subsidized + unsubsidized
  1st year: $3,500, subsidized + unsubsidized
  2nd year: $4,500, subsidized + unsubsidized
  3rd & 4th years: $5,500, subsidized + unsubsidized
  Maximum total at the undergraduate level: $23,000

Independent Undergraduates
  Pre-Nursing, $6,625, no more than $2,625 of which may be in subsidized loans
  1st year: $7,500, no more than $3,500 of which may be in subsidized loans
  2nd year: $8,500, no more than $4,500 of which may be in subsidized loans
  3rd & 4th years: $10,500, no more than $5,500 of which may be in subsidized loans

Maximum total at the undergraduate level: $46,000, no more than $23,000 of which may be in subsidized loans.

Graduate and Professional Students
$20,500 annually, no more than $8,500 which may be in subsidized loans. Maximum total at the graduate or professional level, including loans received for undergraduate study: $138,500, no more than $65,500 of which may be in subsidized loans.

Parent Loans for Undergraduate Students - PLUS Loans
Applications will be accepted beginning May 1 of each academic year.

Who Can Borrow a Parent Plus Loan

Parents* may borrow a Parent Loan for Undergraduate Students (PLUS) to pay the education expenses of each child who is a dependent undergraduate student enrolled at least half time. A criterion is creditworthiness.

*The parent-borrower must be the student's biological or adoptive mother or father. The spouse of a parent who has remarried, that is, the student's step-parent, is also eligible to borrow a PLUS Loan on the student's behalf, if his/her income and assets will be taken into account when calculating the dependent student's expected family contribution (EFC). A legal guardian is not considered a parent for any federal student financial aid purposes.

A parent PLUS Loan borrower must meet the same citizenship and residency requirements as the student. Also like the student, the parent must not owe a refund on a federal student financial aid grant or be in default on a federal student financial aid loan.

Annual Loan Limit, Interest Rate, and Repayment
If you are a dependent undergraduate, the annual limit on the amount that your parents can borrow under a PLUS Loan is equal to the student's cost of attendance minus any other financial aid for which the student is eligible.

The loan interest rate is fixed. The interest rate is adjusted each year on July 1.

Parents begin repaying the loan within 60 days after the final loan disbursement. There is no grace period for these loans. Interest begins to accumulate at the time the first disbursement is made.

How to Apply a Parent Plus Loan

Southwest Baptist University requires dependent undergraduate students to file a FAFSA if their parents want to borrow a PLUS Loan. Filing the FAFSA ensures that students receive the maximum financial aid for which they are eligible.

If your parents have previously signed a PLUS Master Promissory Note, they should continue to borrow from their current lender. If your parents are not previous borrowers, they may select a lender and initiate a PLUS Loan through the online pre-approval process. Please go to www.mohela.com/loanconnect/sbu/ to select the lender of your choice.

You are not required to use a lender listed on this web site. If you chose to use a lender not listed go to the individual lender web site or you may contact the lender directly. We will be glad to accommodate your choice of lender.

How PLUS Loans are Disbursed
The PLUS Loan will be disbursed in two installments. For the academic year, half of the loan will be disbursed in the fall semester and half will be paid in the spring semester.

The lender will send the loan funds to Southwest Baptist University. Notification will be sent to your parent-borrower that the funds have been received. The notification will include instructions for paying your education costs.

Alternative Loan Programs

Alternative loans are intended to provide assistance to those students who do not typically qualify for gift aid and/or the subsidized Federal Stafford Loan or Direct Loan. That is, these loans bridge the gap between college costs and students’ financial aid resources. They usually require creditworthiness. Southwest Baptist University offers links to compare and then select some commonly used Alternative Loan Program providers. You may select a provider by clicking on the name of the lender. This will take you to their web site to begin the application process. Remember, you are not required to use a lender listed here. If you want to use another lender, please go directly to their website.

Federal Perkins Loan

Federal Perkins loans are available to qualifying students in amounts related to financial need. Applicants must be eligible citizens or eligible non-citizens who are making academic progress and show financial need based on their families' income and resources. No interest is charged or payment expected while students are carrying at least half of the normal full-time class load. Repayment begins, with interest accruing at 5% per year on the unpaid balance, nine months after students cease to be enrolled on a half-time basis. Payment schedules may extend to a maximum of 10 years, with at least 10% of the principal due each year. A minimum repayment of $40 per month is required on loans made after July 1, 1972. Before funds can be issued, borrowers must sign promissory notes and affidavits of educational purpose. Some limited repayment deferments and cancellation benefits are available to students entering certain vocations. Participation in this program is limited to undergraduate students attending the Bolivar campus.

Entrance and Exit Counseling for Perkins

Prior to receiving your first Perkins loan at SBU, you must complete Perkins Entrance Counseling. Please go to Mapping-Your-Future and complete the Perkins Entrance Counseling.

Upon leaving SBU, you must complete exit counseling through SBU’s Office of Credit and Collections. Please complete the process through University Accounting Services.