Loan Information Page


Loan programs listed on this page are programs administered and/or awarded through the B-CU Office of Student Financial Aid.

B-CU participates in the Federal Direct Loan Program which consists of the Federal Direct Stafford Subsidized Loan, the Federal Direct Unsubsidized Stafford Loan, the Federal Direct PLUS Loan. The U.S. Department of Education is the lender delivers loan proceeds through the school. B-CU disburses the loans after loans have been processed and approved and classes have begun. When it is time for repayment, you (or your parents) will send all loan payments to the federal loan servicer.

Subsidized Loans are loans for students with financial need, as determined by your cost of attendance minus expected family contribution and other financial aid (such as grants or scholarships). Subsidized Loans do not accrue interest while you are in school at least half-time or during grace and deferment periods.

Unsubsidized Loans are loans for students that are not based on financial need, as determined by your cost of attendance minus other financial aid (such as grants or scholarships). Interest is charged during in-school, deferment, and grace periods. Unlike a subsidized loan, you are responsible for the interest from the time the unsubsidized loan is disbursed until it's paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.

Subsidized and Unsubsidized Loan Limits

The amount you can borrow through the Federal Direct Loan Program is determined by your dependency status and grade level classification in college.

Yearly loan limits for eligible Students:

Dependent Students

Year Credit
Hours
Subsidized
loans
Unsubsidized
loans
Parent
Plus Denial
Freshman 00 - 27 $3,500 $2,000 $4,000
Sophomore 28 - 57 $4,500 $2,000 $4,000
Junior 58 - 89 $5,500 $2,000 $5,000
Senior 92 - + $5,500 $2,000 $5,000

Independent undergraduate students

Year Credit
Hours
Subsidized
loans
Unsubsidized
loans
Freshman 00 - 27 $3,500 $6,000
Sophomore 28 - 57 $4,500 $6,000
Junior 58 - 89 $5,500 $7,000
Senior 92 - + $5,500 $7,000

Stafford loan awards are based on eligibility, student's must be enrolled at least half time (6 credit hours for Undergraduates and 5 credit hours for graduate (masters level), and may not exceed the annual and aggregate loan level limits. ****

Dependent students are eligible for up to $31,000 in combined Subsidized and Unsubsidized loans with a maximum of $23,000 of that in Subsidized loans.

Independent students are eligible for up to $57,500 in combined Subsidized and Unsubsidized loans with a maximum of $23,000 of that in Subsidized loans.

To Apply for a Subsidized and Unsubsidized Student Loan:

Complete a FAFSA (Free Application for Federal Student Aid) at www.fafsa.ed.gov.

To be Eligible You Must:

  1. be a U.S. citizen, national or permanent resident;
  2. be enrolled at least half-time;
  3. not have defaulted or owe a refund to any previous aid program;
  4. maintain satisfactory academic progress; and

To Receive Your Subsidized or Unsubsidized Loan You Need to Complete the Following Steps:

  1. Complete Entrance Counseling.
  2. Accept your loan award on the B-CU Online Financial Aid System may also cancel or reduce the amount of your loan.
  3. Complete a Master Promissory Note (MPN) at http://www.studentloans.gov/.

Parent PLUS Loans are loans for parents of dependent undergraduate students to borrow up to the student's cost of attendance, minus other financial aid. Interest is charged during in-school, deferment, and grace periods. The borrower is responsible for the interest from the time the PLUS Loan is disbursed until it's paid in full. You can choose to pay the interest or allow it to accrue (accumulate) and be capitalized (that is, added to the principal amount of your loan). Capitalizing the interest will increase the amount you have to repay.

How Much Can I Borrow?

The maximum amount you can borrow each academic year is calculated by subtracting other financial aid from your cost of attendance.***

To Apply for a Parent PLUS Loan:

  1. Complete a FAFSA (Free Application for Federal Student Aid) at www.fafsa.ed.gov.
  2. Submit a completed PLUS Loan Application to our office.
  3. Complete a Master Promissory Note (MPN) for Parent PLUS Loans at http://www.studentloans.gov/.

To be Eligible You Must:

  1. be a parent or eligible step-parent of a dependent undergraduate student and listed on the fafsa application;
  2. the student must be enrolled at least half-time;
  3. the borrower and student must not have defaulted or owe a refund to any previous aid program;
  4. the student must maintain satisfactory academic progress;
  5. the parent borrower and student must be U.S. citizens, nationals, or permanent residents; and
  6. the parent borrower must have no adverse credit history.

***If the parent or married step parent (must be on the fafsa) applies for a Plus loan and is denied for that loan the student may be eligible for additional Unsubsidized loans up to $4,000 Freshman/Sophomore and  up to $5,000 for Junior/Seniors.

Current Interest Rate for Federal Direct Student Loans

ALL INTEREST RATES IN THE FOLLOWING TABLE ARE FIXED FOR THE LIFE OF THE LOAN.

Loan Name

Interest Rate for loans disbursed from July 1, 2014-June 30, 2015

Interest Rate for loans disbursed from July 1, 2015-June 30, 2016

Repayment

Co-signer or Endorser Needed?

Subsidized Loan

4.66% Undergraduates

4.29% Undergraduates

Begins 6 months after you graduate or enroll for less than half time.

No.

Unsubsidized Loan

4.66% Undergraduates

6.21% Graduate

4.29% Undergraduates

5.84% Graduate

Begins 6 months after you graduate or enroll for less than half time.

No.

Parent PLUS Loan

7.21%

6.84%

Begins with 60 days of disbursement of loan funds unless in-school deferment is requested.

Dependent upon credit decision.

Interest Rates for Direct Loans First Disbursed on or After July 1, 2014

For any loan disbursement for a loan where the first disbursement is/will be… The origination fee percentage for Direct Subsidized Loans and Direct Unsubsidized Loans is…

The origination fee percentage for Direct PLUS Loans is…

On or after October 1, 2015 and before October 1, 2016

1.068 4.272
On or after October 1, 2016 and before October 1, 2017 1.069 4.276
Loans first disbursed prior to Oct. 1, 2015, have different loan fees.