Loan Assistance


Loans Awarded by Case Western Reserve Office of University Financial Aid

 

These loans are awarded on the basis of financial need. A loan will probably be a part of a package awarded in response to an application for financial assistance.


Federal Perkins Loan

 

Perkins Loans enable students to borrow up to $40,000 through graduate school (up to $20,000 as an undergraduate). Repayment begins six months after graduation or after the student ceases enrollment on at least a half-time basis. To be eligible a student must be a citizen of the United States or have a permanent resident visa, be at least a half-time student making satisfactory progress toward a degree, and establish financial need for the loan. The Federal Perkins Loan may be awarded to undergraduate students and graduate and professional students in all programs except the School of Medicine.

 

HEALTH PROFESSION

 

Student Loans (HPSL)


Awarded to students in the School of Dental Medicine and School of Medicine who demonstrate financial need, HPSL is a federal loan that enables eligible students to borrow at 5 percent simple interest, with repayment made over a ten-year period. Parental information must be provided by all students wishing consideration for these funds.

 

Federal Nursing Loan Program


Only D.N.P. and M.S.N. students in the School of Nursing are being awarded the limited federal loans provided under the Nursing Student Loan Program. They may receive up to $4,000 per year, depending upon financial need and availability of funds. Interest is 5 percent, and repayment begins when the student completes the program or ceases to be enrolled at least half time.


University Loans


A university loan is a low-interest long-term loan provided to a student to assist with educational expenses. Repayment is made over a ten-year period after graduation or over a ten-year period after the student ceases enrollment on at least a half-time basis. Interest is 8 percent.


a) Undergraduate
Forty-eight loan funds have been established for undergraduate students. Loans are awarded by the Office of University Financial Aid on the basis of need.


b) Graduate and Professional
The Mandel School of Applied Social Sciences has a small amount of loan money available to meet financial need after federal loan availability has been exhausted. These loans are awarded by the Office of University Financial Aid.


A number of loan funds have been established for students in the School of Dental Medicine. Loans from these funds are awarded only to meet cases of exceptional need that cannot be met by other funding, and some of these funds are restricted to certain classes and categories of students.


The School of Law provides low-interest, long-term loans to students with unmet need who have exhausted all other available assistance.


The Weatherhead School of Management has loan funds for MBA students who demonstrate financial need.
Loans are available to students in the School of Medicine from funds given to the School of Medicine for that purpose. The Medical Alumni Association Rotating Loan Fund, augmented each year by contributions from graduates of the school, is a major source of aid for currently enrolled students.


The Frances Payne Bolton School of Nursing has several loans funds available to assist students with exceptional financial need as determined by the Office of University Financial Aid.

 

Loans Awarded by Agencies Outside the University


The following loans are available to all undergraduate, graduate, and professional students who are enrolled on at least a half time basis, hold U.S. citizenship or permanent resident status, and are admitted to or enrolled in a degree-seeking program.


Subsidized Loans


Case Western Reserve University participates in the Federal Stafford Loan program. The Federal Stafford Loan program lends money through private lenders, to students in undergraduate and graduate and professional schools.


Students must be enrolled half-time (6 credit hours per semester; 5 credit hours in the School of Law, graduate Nursing, and the Mandel Center for Non-Profit Management) and demonstrate financial need. The interest rate is 5.6 percent for undergraduates and 6.8 percent for graduate/professional students. The interest is subsidized (paid) by the U.S. Federal Government as long as the student remains enrolled at least half time. A student making satisfactory academic progress may borrow up to $3,500 for the first year of undergraduate study, up to $4,500 for the second year, $5,500 for each year of subsequent undergraduate study, and $8,500 for each year of graduate study, with an aggregate maximum of $23,000 undergraduate and $65,500 undergraduate and graduate. Repayment begins six months after the student ceases to be enrolled on at least a half-time basis. No principal or interest must be paid while the student is enrolled half-time or more. All students must demonstrate financial need as determined by the Office of University Financial Aid in accordance with criteria established by the U.S. Federal Government. All undergraduate students must apply for the Federal Pell Grant. Application forms for the Federal Stafford Loan Program may be obtained from a bank or other lending institution, or from the Office of University Financial Aid. The appropriate forms must then be submitted to the Office of University Financial Aid. All applicants for Stafford Loans must submit the following

  1. A Free Application for Federal Student Aid (FAFSA).
  2. To the Office of University Financial Aid:
    a. A Case Western Reserve Financial Aid Application.
    b. If a student is selected for verification, a signed copy of the parents’ prior year federal
        income tax return, including all schedules and W-2 forms (in the case of dependent students).
    c. A signed copy of the student’s prior year federal income tax return, including all schedules
        and W-2 forms (and where appropriate, the student’s spouse’s), or, if a tax return was not
        filed, a completed Student/Spouse Statement of Income.
    d. In the case of students enrolled or admitted to the Mandel School of Applied Social Sciences,
        School of Graduate Studies, School of Law, Weatherhead School of Management, Mandel
        Center for Nonprofit Organizations, or the D.N.P, M.S.N. or Ph.D. program of the Frances Payne
        Bolton School of Nursing, the Office of University Financial Aid also requires a memorandum
        from the school specifying the admission status, number of credit hours enrolled for each term,
        current academic standing, and the amount of other financial assistance, if any, being awarded.
        The student should allow at least 8 to 10 weeks between submission of the forms to the Office
        of University Financial Aid and receipt of the loan proceeds.
    e. All first-time Stafford Loan borrowers must complete a loan entrance interview to acquaint
        themselves with the rights and responsibilities of federal loan borrowers. This information
        session may be handled online and must be completed before the promissory note may be
        signed or funds disbursed.

Unsubsidized Loans


Unsubsidized Federal Stafford Loans require the same enrollment criteria. The interest rate is 6.8% for all students. Borrowers are responsible for paying the interest during the in-school and deferment periods. Borrowers may choose to make periodic interest payments to the lender/servicer, or opt to have the accrued interest capitalized (added on to) the principal loan amount. Borrowers who do not qualify for the maximum amount under a subsidized loan may borrow an unsubsidized loan up to the maximum allowable loan amount. All undergraduate students are eligible to borrow up to $2,000 in unsubsidized Stafford Loan in addition to the $3,500, $4,500, or $5,500 annual maximum in subsidized Stafford. The maximum aggregate Stafford loan amounts for dependent students are $5,500 per year for freshmen, $6,500 per year for sophomores, $7,500 per year for juniors and seniors, and $20,500 per year for graduate students. Independent undergraduate students are eligible for an additional unsubsidized loan in the amounts of $4,000 per year for freshmen and sophomores, $5,000 per year for juniors and seniors, and $12,000 per year for graduate students. Students enrolled in the Schools of Medicine and Dental Medicine are eligible to borrow an additional $20,000 annually. The application process is identical to that for the subsidized loans. Undergraduate students must apply for and have eligibility determined for the Federal Pell Grant and all students must have eligibility for the subsidized loan determined before borrowing an unsubsidized loan. Promissory notes are completed online at the SallieMae website.

 

Federal Parent Loans for Undergraduate Students (FPLUS)


Many lending institutions participate in the FPLUS program, through which a parent may borrow on behalf of a dependent undergraduate student up to the difference between the cost of education and any other financial assistance awarded. Students must be enrolled at least half time (6 credit hours per semester), be admitted to or enrolled in a degree-seeking program, and be making satisfactory academic progress. Interest and repayment begin 60 days after disbursement of the loan. The interest rate is fixed at 8.5 percent. There is no aggregate borrowing limit. Eligibility is not based on need, but a Case Western Reserve Application for Financial Aid must be submitted to the Office of University Financial Aid. The loan applications may be obtained from lending institutions such as banks, credit unions, and savings and loan associations or a parent may apply online and select from several lenders. The student should allow at least 8 to 10 weeks between submission of the forms to the Office of University Financial Aid and receipt of the loan.


Graduate PLUS Loan


Beginning July 1, 2006, graduate and professional students are eligible to borrow under the PLUS Loan Program up to the cost of attendance, minus other estimated financial assistance. The terms and conditions applicable to the Parent PLUS apply to the Graduate/Professional PLUS Loans. The applicant may not have an adverse credit history, must file the Free Application for Federal Student Aid (FAFSA), and apply for the maximum eligibility under the Federal Subsidized and Unsubsidized Stafford Loan Program. The interest rate is a fixed 8.5 percent.


Federal Consolidation Loans


Borrowers with outstanding indebtedness through the William D. Ford Federal Direct Loan Program, Federal Stafford Loan, Unsubsidized Stafford Loan, Federal Supplemental Loan for Students, National Direct Student Loan, Federal Perkins Loan, or Health Professions Student Loan programs may consolidate their loans, provided the loans are not in default or if in default, the borrower must have made satisfactory repayment arrangements with the lender. Consolidation may occur during the repayment period or the grace period preceding repayment.

 

Limited deferments of principal are available. The variable interest rate is capped at 8.25 percent. Repayment terms may include graduated or income-sensitive repayment schedules. The repayment period is tied to the amount consolidated and may extend up to thirty years.

 

Interested borrowers should contact their lenders for additional information and referrals to participating agencies. Borrowers under the William D. Ford Federal Direct Loan program may contact the Servicing Center’s Consolidation Department or the Office of University Financial Aid.


Outside Loan Programs


Several lenders offer low interest educational loans to students and/or parents. These loans are in addition to or alternatives to the Federal Stafford and PLUS Programs. Interest rates are variable, based on the LIBOR (London Inter-Bank Offered Rate). Interest payments must be paid during the in-school period. Students in the schools of Medicine and Law may use other loan programs and should consult their school of enrollment for additional information and application materials.


Frances Payne Bolton School of Nursing


OHIO NURSE EDUCATION ASSISTANCE LOAN PROGRAM (NEALP)

 

This program was created to assist the state of Ohio in meeting nursing shortages by providing assistance to students enrolled in approved nurse education programs and to encourage these students to remain in Ohio as they enter the nursing profession. These loans are available to students pursuing the, B.S.N. and D.N.P. degrees.

 

Eligibility requirements include:

  1. Ohio residency
  2. U.S. citizenship or permanent residency
  3. Acceptance or enrollment in an approved R.N. nurse education program.
  4. Demonstration of intent to practice nursing within the state of Ohio after graduation.
  5. Owe no refund nor be in default on any state or federal educational loan or grant.
  6. Satisfactory academic record that places student in good academic standing.

NEALP loans are limited to $3,000 per year with an aggregate limit of $12,000. Financial need must be demonstrated through the filing of the Free Application for Federal Student Aid (FAFSA). Upon graduation, a student may be eligible for debt cancellation at the rate of twenty percent (20 percent) per year for a maximum of four years (80 percent) if the borrower is employed in the clinical practice of nursing within the state of Ohio.

 

Borrowers who complete the entire service obligation will be required to repay twenty percent (20 percent) of the loan plus interest. Borrowers who do not complete the service obligation must repay the entire outstanding loan balance plus interest. Applications are available from the Office of University Financial Aid. The application deadline is June 1.