Loans & Grants
Stafford Loan Program
Federal Stafford Loans, both subsidized and unsubsidized, as well as PLUS (a loan for parents), are available through the Federal Direct Loan Program. Students who apply for Federal Stafford Student Loans must be matriculated, degree-seeking candidates enrolled at least half time (six credit hours) per semester. Federal regulations specify that federal aid recipients must be U.S. citizens, U.S. nationals or eligible non-citizens.
The subsidized Stafford loans are need-based, and the government pays the interest on these loans while the student is in school, during a six-month grace period immediately preceding repayment, and during authorized deferment. The unsubsidized Stafford loans are not need-based, and the student is responsible for all of the interest that accrues on the loan, including while in school. The PLUS loan is available for parents and helps cover the remaining balance due on a student’s account up to the difference between the budgeted total and the expected financial aid.
A full-time student will be eligible for a specific amount of Federal Stafford Loans each academic year based on their grade level and dependency status. Below are the borrowing limits:
| Grade Level | Dependent Student | Independent Student |
|---|---|---|
| Freshman (0-31 Credits) | $3500 | $3500 plus $6000 Unsubsidized |
| Sophomore (32-63 Credits) | $4500 | $4500 plus $6000 Unsubsidized |
| Junior (64-95 Credits) | $5500 | $5500 plus $7000 Unsubsidized |
| Senior (96+ Credits) | $5500 | $5500 plus $7000 Unsubsidized |
How to Apply
Complete the Free Application for Federal Student Aid (FAFSA). Guilford’s Federal Code Number for use on the FAFSA is 002931. Based on that application, the Office of Student Financial Services (SFS) will determine your eligibility for either a subsidized or unsubsidized Stafford Loan and subsequently will make that award part of your financial aid award letter.
In order to accept any federal Stafford Loan money in your financial aid award package, you must:
- 1. Sign on to Banner Web
- 2. Click the Financial Aid tab
- 3. Go to “Award”
- 4. Go to “Award for Aid Year” and select 2011-2012
- 5. Click on “Accept Award Offer”
At this point, you will accept, decline, or adjust the amount of your Federal Stafford Loan. From Banner Web, you can follow the link to www.studentloans.gov where you can sign your promissory note and Loan Entrance Counseling. Your subsidized and unsubsidized Stafford Loans WILL NOT process if you do not complete these steps.
Perkins Loan Program
The federal Perkins Loan Program offers student loans with an interest rate of 5 percent that must be repaid within 10 years. Payments begin nine months after the student leaves Guilford College or falls below half-time status. While you are in school at least half time and during your nine-month grace period, interest will not accrue and no payments are required. Following the grace period, the student will be billed on a monthly basis for the Perkins Loan. Deferments and extensions may apply under certain circumstances.
How to Apply
Complete the Free Application for Federal Student Aid (FAFSA). Guilford’s Federal Code Number for use on the FAFSA is 002931. Based on that application, SFS will determine your eligibility for a Perkins Loan and subsequently will make that award part of your financial aid award letter. Along with the award letter you will receive a Federal Perkins Loan information sheet and request form. You must then complete and return the Perkins Loan Request Form. From that form we start the loan process. You will receive a Perkins Promissory Note from the lender. Your loan proceeds will not transfer to the College until that promissory note has been signed and returned to your lender.
Pell Grant Program
Federal Pell Grants are considered a foundation of federal financial aid, to which aid from other federal and nonfederal sources might be added. A Pell Grant, unlike a loan, does not have to be repaid. The maximum Pell Grant award for the 2010-11 award year (July 1, 2010 to June 30, 2011) is $5,550. The amount you get, though, will depend not only on your financial need, but also on your costs to attend school, your status as a full-time or part-time student, and your plans to attend school for a full academic year or less. You may receive up to two consecutive Pell Grant awards during a single award year to accelerate your program toward your degree. You must be enrolled at least half-time and in a program that leads to an associate or bachelor’s degree or certificate.
How to Apply
Complete the Free Application for Federal Student Aid (FAFSA). Guilford’s Federal Code Number for use on the FAFSA is 002931. Based on that application, SFS will determine your eligibility for a Pell Grant and subsequently will make that award part of your financial aid award letter.
Federal Supplemental Educational Opportunity Grant (FSEOG) Program
The Federal Supplemental Educational Opportunity Grant (FSEOG) program is for undergraduates with exceptional financial need. Pell Grant recipients with the lowest expected family contributions (EFCs) will be considered first for a FSEOG. Just like Pell Grants, the FSEOG does not have to be repaid. FSEOG recipients can receive between $100 and $4,000 per year.
How to Apply
Complete the Free Application for Federal Student Aid (FAFSA). Guilford’s Federal Code Number for use on the FAFSA is 002931. Based on that application, SFS will determine your eligibility for an FSEOG and subsequently will make that award part of your financial aid award letter.
North Carolina Need-Based Scholarship Program (NCNBS)
North Carolina residents who attend Guilford as fulltime students or three quarter students may be eligible for the new NC Need Based Scholarship. Legal residents of North Carolina with EFC’s (Expected Family Contribution) of $15,000 or less and meet the eligibility criteria of the Federal Pell Grant Program are eligible for the scholarship. Individual grant amounts will vary according to the EFC of students who complete the FAFSA. Funding is determined on a year to year basis by the North Carolina State Legislature.
Alternative Loans
Guilford College is pleased to be able to make available several third-party options for loans after students have looked into the federal loan programs. These loans are provided by banks and lending institutions and carry reasonable interest rates and repayment plans. They can be used to pay any balance due on a student’s account up to the difference between the financial aid awarded and the student’s budget.
How to Apply
Visit ELMSelect for a list of preferred lenders for alternative loans. There, you can do a comparison of loans and apply for your chosen loan online. When you have completed the online application with the lender, they will notify Guilford College to certify the loan. We will then adjust your financial aid package and send you an amended award letter that will include the anticipated funds from your loan.
Default and Overpayment Status
Guilford College follows federal and state guidelines concerning students who are in default on previous student loans or in overpayment with the Department of Education. Institutional aid, as well as, Federal and State, will not be awarded until default and/or overpayment status is cleared.
Default is defined as being delinquent more than 270 to 360 days with payments for a loan that is currently in repayment status with the Department of Education.
Overpayment is defined as having received an excess of financial aid funds from the Department of Education.
In either case, the student should contact the Department of Education’s Default Resolution Group at 1-800-621-3115.
