Loan Types

Federal Stafford Loans

T.H.E. Features: 0.25% ACH Benefit Six month grace period Deferment options Stafford Loans come in two types, subsidized and unsubsidized. Subsidized – The federal government pays your interest while you are in school, during your six-month grace period, and during eligible deferment periods. Effective 7/1/08 undergraduate students will receive a different interest rate on their subsidized loan. Unsubsidized – You are responsible for all interest that accrues on an unsubsidized loan. However, loan payments are not required while you are in school at least half time, in your six-month grace period, or during eligible deferment periods. The interest rate on all new Unsubsidized Federal Stafford loans is fixed at 6.8%.

Federal Graduate PLUS

T.H.E. Features: 3% origination fees 0.25% ACH Benefit Deferment options 8.5% fixed interest rate After Stafford loans are used, graduate students have access to the Graduate PLUS loan for amounts up to the cost of education minus other financial aid. Requires a credit evaluation that is less stringent than a private loan and offers an Endorser option for borrowers who do not meet the federally mandated credit criteria. Students in an in-school status at least half-time will automatically receive an in-school deferment.

T.H.E. Private Loans

T.H.E. Feature: 42-month grace period for MD/DO, nine months on all others The T.H.E. Private Loan is designed to complement federal loan programs for those who require additional resources beyond the federal loan limits. Because these loans are not subsidized or guaranteed by the federal government, they typically have higher interest rates and fees and require a consumer credit report. A creditworthy U.S. citizen cosigner may be required in certain circumstances. A consumer credit report will be reviewed to determine cosigner eligibility. T.H.E. Private loans have a variable interest rate. The interest rate will change quarterly on the first day of each January, April, July and October (the "interest rate change date") if LIBOR changes. The interest rate is the average of the rates for 3-month Eurodollar deposits ("LIBOR") on the first business day of each of the three calendar months preceding the interest rate change date, plus the percentage identified on the previous page. LIBOR rates are published here.

Federal PLUS Loans

T.H.E. Features: 0.25% ACH Benefit Interest-only payment option Make no in-school payments with a forbearance Federally sponsored, the Parent PLUS Loan is available for parents of undergraduate, dependent students. The PLUS loan is a loan parents take out on behalf of their son or daughter to fund the cost of the student's education. For greatest advantage, be sure your dependent student first maximizes their Federal Stafford Loan borrowing. The interest rate is fixed at 8.5%.