Oklahoma Baptist University


		Admissions
	Ru Alexander, Biology/Pre-Med
		Wednesday, May 14, 2008

2008-09 Loan Programs

Loans are an increasingly important part of financing a college education. These loans have low interest rates and both the interest and principal may be deferred until after you leave school. Consider a loan as borrowing against the increased earnings you can hope to have as a college graduate.

Perkins Loan: Up to $3,000
With this loan, interest does not begin to accrue until nine months after the student leaves OBU. (With the Perkins Loan, some borrowers may qualify to have the loan cancelled later if they are employed in certain fields.) OBU is the lender, and repayment begins nine months after your last semester in school. A separate loan application is not required.

Stafford Loans: Up to $3,500 in the First Year
For the SUBSIDIZED STAFFORD LOAN the government pays the interest on the loan while the student is enrolled. The interest rate is a fixed rate of 6 percent. Undergraduates may borrow $4,500 in the second year and $5,500 in each of the third and fourth years. Repayment begins six months after the student's last semester in school. A separate loan application is required for 1st-time borrowers and a bank or credit union will serve as your lender.

The UNSUBSIDIZED STAFFORD LOAN has the same terms and conditions as the Subsidized Stafford Loan except that the student is responsible for the interest that accrues while he or she is in school and the interest rate is 6.8 percent. Further, demonstrated need is NOT required. Again a separate loan application must be completed for 1st-time borrowers. Sixty percent of all OBU students have Stafford Loans. The average debt for an OBU graduate with Stafford Loans is $17,205. This would require a repayment of approximately $175 a month for 120 months.

Parental Loan for Undergraduate Students (PLUS): Up to the Cost of Education
Parents of students may borrow up to the total cost of education less any financial aid available to the student. Repayment begins within 45 days of disbursement. The interest is fixed at 8.5 percent. PLUS loans are based on credit. However, if a parent is denied a PLUS loan, the student is then eligible for additional unsubsidized stafford loan of $4000-$5000.

OBU Endowed Loans: Up to $8,000
Limited loan funds are available through the University for students who show need based on the FAFSA. A co-signer is required, and loan funds must be used to pay OBU charges. Endowed loans have a fixed 5% interest rate, and they do not accrue interest while the student is enrolled at OBU. Repayment begins nine months after the student completes their education.