Page 31 - 2019-2020 Academic Catalog - Providence Christian College

LOANS
Providence participates in the Federal Direct Loan Program. This program offers both subsidized and unsubsidized loans. There are two categories of a Federal Direct loan: subsidized and unsubsidized. With a subsidized loan, the government pays the interest while the student is in college. With an unsubsidized loan, the student is responsible for interest while in college. Payments for Federal Direct loans begin six months after the student drops below six credit hours or after graduation.
Direct Loan limits are as follows: Freshman: $5500
Sophomores: $6500 Juniors/Seniors: $7500
Please note: Independent freshmen and sophomores may qualify for an additional $4000 in unsubsidized loans. Juniors and seniors may qualify for an additional $5000 in unsubsidized loans. Student loans as well as Parent PLUS loans are available.
These loans are called “‘direct” because the student and/or parent are borrowing directly from the US Department of Education. In order to see if you qualify to receive any of these loans you will need to complete the FAFSA (Free Application for Student Aid) as well as the VFAO (Virtual Financial Aid Office) application. To be eligible for Direct Loans, you must be enrolled in school at least half- time and meet general eligibility requirements for the Federal Student Aid programs. New borrowers must complete a Federal Direct Loan electronic master promissory note to borrow funds through this program.
If a student obtains a loan to pay for an educational program, the student will have the responsibility to repay the full amount of the loan plus interest, less the amount of any refund. If the student has received federal student financial aid funds, the student is entitled to a refund of the monies not paid from federal student financial aid program funds.
Subsidized Loan
The subsidized loan provides for students with financial need as determined by federal regulations. This subsidized loan will not accrue interest while the student in enrolled in school at least half time, or during the student’s grace and deferment periods.
Unsubsidized Loan
The unsubsidized loans are disbursed to students without concern for need. These loans accrue interest during all periods.
Parent PLUS Loans
Plus loans are offered to parents of dependent college students to help meet college costs. Plus loans allow parents of dependent students to apply for as much as the difference between the cost of education and the student’s financial aid. The loan is not need based, but the parent’s credit history may be reviewed to determine eligibility. The Plus loan should be used only after all other resources have been considered since interest begins 60 days after the first disbursement. Repayment normally begins 60 days after the full amount you’ve borrowed for a school year has been disbursed.
STUDENT EMPLOYMENT
At Providence Christian College, student employment serves to assist in the educational program of the College by providing financial resources for the students to help pay for college and by training students to be effective Christian employees to impact the world for God. Filling out a student
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