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Arts & Humanities

Teachers College, Columbia University

Welcome to the Office of Financial Aid

Newly Admitted Students » Types of Loans

All You Need To Know About Federal Student Loans!

Federal Programs: There are two different types of federal loans commonly used to finance education: Direct and FFELP Loans. Direct loans are funded through the Department of Education whereas FFELP loans, though still federally backed, are funded through approved financial institutions such as banks, consumer finance companies, and credit unions. Both, the FFELP: Federal Family Education Loan Program and the William D. Ford Direct Loan Program offer Stafford and PLUS loans.

Federal Loans:

Federal Perkins Loan:

Awarded on the basis of “exceptional need”
School-lender loan: comes from a limited amount of federal funds allocated to Teachers College
Must repay loan to the school
Awarded on a “first-come, first-serve” basis
5% interest rate, No interest while in school
May be awarded up to $8,000 per academic year
To apply for the Federal Perkins Loan, you should:
- File your FAFSA early!
- Submit a formal letter to the Office of Financial Aid requesting the Federal Perkins Loan

Federal Subsidized Stafford Loan:

Must demonstrate financial “Need”
Must be enrolled for at least 6 credits (half-time)
Fixed interest rate of 6.8%, No interest while in school
6 month grace period before repayment begins (upon graduating, dropping below 6 credits, or withdrawing from your studies)
May be awarded up to $8,500 per academic year

Federal Unsubsidized Stafford Loan:

Not based on financial “Need”; You may qualify without showing financial need
Must be enrolled at least 6 credits (half-time)
Fixed interest rate of 6.8%, Interest starts to accrue while in school
6 month grace period before repayment begins (upon graduating, dropping below 6 credits, or withdrawing from your studies)
May be awarded up to $12,000 per academic year

Federal Graduate PLUS Loan:

Dependent on credit-worthiness
Must be enrolled at least 6 credits (half-time)
Fixed interest rate of 8.5%
No grace period before repayment begins
May borrow up to the cost of attendance

Once you have decided whether to apply for any of the loans offered, complete the 2009-2010 Loan Authorization Form* and return it to the Office of Financial Aid via fax or mail.

* A copy of this form can be found on our website, at http://www.tc.columbia.edu/financialaid/index.asp?Id=Forms&Info=Forms

Please know that you have the option of choosing ANY lender you wish, and that TC will process applications for any lender you request. Our recommended list is intended to be a conduit for helping you find the most competitive rates on the market combined with the best customer service. Below is a list of recommended lenders for 2009-2010.

Access Group

Telephone: 800-282-1550

Website: http://www.accessgroup.org/index.htm?src=%2F404%2Findex%2Ehtm&dest=/index.htm
Lender Code: 808851

Citibank
Telephone: 800-967-2400
Website: http://studentloan.citibank.com/mbslcsite?op=offer&try=2
Lender Code: 826878

Wachovia
Telephone: 877-689-0763
Website: http://www.wachovia.com/personal/page/0,,325_496,00.html
Lender Code: 830005

William D. Ford Federal Direct Loan Program
Telephone: 800-4FEDAID (433-3243)
Website: http://www.ed.gov/programs/wdffdl/index.html
No Lender Code For This Program

Private Loans:

Private, or alternative loans are offered to supplement federal loan programs or for students who are not eligible to participate in federal student loan programs, (such as international students).

- Terms and interest rates vary by lender.

- You may choose any lender you wish to apply for an alternative loan.

- Most private/alternative student loans are credit-based.

- You must be fully approved and you must list Teachers College as the school in which you are applying for.

- Since the Office of Financial Aid has no knowledge of the loan prior to the certification, it is your responsibility to ensure the loan has been processed.

Consider: What Is The Best Option For Me?

When it comes to financing those remaining education costs, Graduate PLUS Loans and Private/Alternative Loans are often the primary choices for students in graduate school. Knowing the differences between each type of loan can assist you in making the right decision for yourself as a borrower.

PLUS Loans	PRIVATE Loans
Federal education loans	Consumer loans; not federally backed
Fixed interest rate of 8.5%	Interest rates are variable with no defined cap or maximum
Accrued interest is capitalized upon repayment	Accrued interest may be capitalized as frequently as monthly
May borrow up to the cost of attendance less other aid borrowed by the student	May borrow up to the cost of attendance less other aid borrowed by the student
Credit requirements are based on federal standards specific to the PLUS Loan programs; No use of tradition credit underwriting analysis	Most providers do a full credit review, including credit history, credit score, debt-to-income ration, etc.
Can be consolidated under the Federal Consolidation program	Not eligible for consolidation under the Federal Consolidation Loan program because private loans are not federal loans
Some lenders offer postponement of repayment while the student is enrolled at least half-time	Deferment is generally available during the in-school period; Deferment, forbearance and consolidation options are offered at the lender’s discretion
Repayment begins 30 to 60 days after the loan is fully disbursed, unless arrangements are made to postpone repayment	Payment terms vary beginning up to six months after graduation
Maximum repayment term is 10 years (may be longer under consolidation)	Maximum repayment term varies; some providers allow up to 20 years
A student must be enrolled at least half-time to be eligible	Available for undergraduate, graduate, and less than half-time students, although the lender may require the presences of a co-borrower who is jointly responsible for the outstanding debt