Student loans are a form of financial aid that requires repayment of the funds received, usually with interest. Some loans may be in either the student's or the parents' name.

All loans require a promissory note, and some require a separate application. Both a description of the loan and its particular application process are described below.

 Stafford Loan  |  Perkins Loan  |  PLUS Loan

Federal Stafford Loan
There are two types of Federal Stafford Loan: subsidized and unsubsidized.
Both loans carry a fixed interest rate of 6.8% for loans disbursed on or after July 1, 2006.  For returning borrowers with loans disbursed between July 1, 1998 and June 30, 2006, the rate is variable based on the 91-day Treasury bill bond equivalent rate plus a certain percentage add-on.

Stafford Loans are charged a 1 to 3% origination and guarantee fee deducted when funds are disbursed. If a Stafford Loan appears on your award notice, you should anticipate receiving 96% to 99% in net funding.  The Stafford Loan amount on your award letter is an estimate based on your number of course credits, demonstrated need from your FAFSA, and your academic grade level.

Students must complete an Entrance Counseling session as a Federal requirement before receiving Stafford Loan funds. This entrance interview requirement may be done online. Instructions on how to do this are included with your award letter.

Subsidized Stafford Loans:

• Eligibility for a Subsidized Stafford Loan is based on financial need as determined by the FAFSA.
• Subsidized Stafford Loans allow for a deferment of principal payments while the student is enrolled as at least a half-time student in a degree-seeking program.
• Students are allowed a six-month grace period upon leaving college before making payments on principal and interest of the loan.
• Interest subsidies while the student is in school are paid by the Federal Government.

Unsubsidized Stafford Loans: 

• Unsubsidized Stafford Loans allow for deferment of principal payments while the student is enrolled as at least a half-time student in a degree-seeking program.
• Students are allowed a six-month grace period upon leaving college before making payments on the principal of the loan.
  IMPORTANT: Unsubsidized loans do not have an interest subsidy paid by the federal government. This means that interest will accrue on the loan during the in-school and six-month grace periods. Students are strongly encouraged to make monthly interest payments on the Unsubsidized Stafford Loan while in school. Otherwise the deferred interest will be capitalized, and this accrued amount will be added to the loan principal when repayment begins.

Applying for a Stafford Loan
Stafford loans require that the student borrower sign a Master Promissory Note (MPN) through an online process. Click here to visit ae aessuccess.org, get information, and apply online.

Returning students who have already applied for a Stafford loan in a previous school year do not have to resign a Master Promissory Note unless otherwise instructed by the Financial Aid Office.

Federal Perkins Loan
The Financial Aid Office awards Federal Perkins Loans to students based on a combination of significant need as demonstrated on the FAFSA and the availability of funds.
The interest rate for the Perkins Loan is 5%, and no interest or principal payments are due until 9 months after a student graduates (or drops below half-time status).

Perkins Application Process:
The student must sign a promissory note before the loan can be credited. The promissory note will be available at the start of the Fall semester. The student must also attend an Entrance Loan Counseling session. Contact the Financial Aid Office at 610-902-8420 or financialaid@cabrini.edu for information regarding times and location.

A PLUS Loan amount appearing on your financial aid award notice is only a recommendation.
Parents and students are not obligated to take out either a PLUS or an alternative loan.  However, these loans are a viable resource that many families use to help meet college costs after all other financial aid options have been exhausted.

PLUS Application Process:
Click here to visit aesuccess.org, get information, and apply online.