Student Loans
Barry’s Pledge
- To protect your right to choose your lender.
- If we suggest any lenders it will be based solely on up-front fees, interest rates or other benefits to you.
- To not request nor accept any payments or benefits of any kind from any lender in exchange for being included on a lender list or in exchange for any other special treatment.
- To clearly and fully disclose to students and parents the criteria and process used to select the lenders for recommended or suggested lender lists.
- To ensure that employees of lenders who make loans to students or their parents do not identify themselves as employees of the institution and that employees or agents of a lender, servicer or guaranty agency do not work in or provide staffing to our financial aid office.
- To ensure that employees will not receive any gift, including travel gifts, of more than nominal value from any lender, servicer, or guaranty agency.
- Should you select a lender that does not have an electronic process, we will work with that lender to facilitate their paper process to the best of our ability.
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If you have an active student or parent (PLUS) loan you should generally continue
to borrow from that lender, therefore you are not required to fill out a new loan application every academic year. |
It is your right as well as your responsibility to choose the lender you wish to borrow your Federal Stafford or (PLUS) loan from and then provide that information to us. Please see our guide to choosing a lender below for the key items you need to be aware of in your lender selection. The U.S. Department of Education also provides a guide to student loans as well as The GreenTree Gazette.
Barry University does not maintain a “preferred lender list”. We will certify and process your loan through any lender you select that is eligible to participate in the Federal Family Educational Loan Program (FFELP).
When selecting a lender, it is important to choose one that has a process that works well with Barry University’s loan processing system. We work with the nation’s largest student loan guarantor, United Student Aid Funds (USAF) and we utilize the internet based OpenNet system. The majority of lenders work well with this system. Those that don’t may utilize a paper process and the US Postal Service to process your loans. It is also important that the lender you select is capable of disbursing your student loan via Electronic Funds Transfer (EFT). This allows your loan funds to be quickly and safely credited to your account at the Cashier/Business Office. Otherwise, a paper check may have to be mailed to Barry and then deposited to your account.
APPLY FOR A LOAN
After Barry University has provided you with your financial aid award letter, you may log onto the OpenNet website to start the loan application process. You will set up your pin number with them so you can electronically sign your Master Promissory Note (MPN). There is an entrance interview required which reviews your legal rights and responsibilities. Then you will have an opportunity to select your lender from a list of close to 100 lenders.
If you wish to borrow from a lender that is not listed, please obtain the name and the lender ID number for your lender of choice, and contact the Financial Aid Office for assistance at 800-695-2279.
STUDENT AND PARENT LOAN INFORMATION
Federal Family Education Loan Program (FFELP) is the collective name for a group of federal loan programs designed to provide low interest loans to help you pay for postsecondary education. This program consists of low-interest loans for students and parents. There are two types of FFELP loans: Stafford (subsidized and unsubsidized loans) and Parent Loan for Undergraduate Students (PLUS).
Stafford Loans: They can be subsidized and unsubsidized.
- The Subsidized Federal Stafford Loan: Based on financial need. The government pays the interest while the student is enrolled at least half-time. Repayment begins six months after graduation or when the student drops to less than half-time enrollment.
Subsidized loans:
Maximum amount of based on your academic level |
Freshmen |
up to 29 credits |
$3,500 a year |
Sophomore |
30 to 59 credits |
$4,500 a year |
Junior/Senior |
60 or above credits |
$5,500 a year |
- The Unsubsidized Federal Stafford Loan: Not based on need. However, the student is responsible for all interest which accrues during in-school, grace, and deferment periods. The interest rate is variable, capped at 8.25%. For dependent students, the annual loan limit for combined Subsidized and Unsubsidized
Unsubsidized loans:
Maximum amount of based on your academic level |
Freshmen/Sophomore |
up to 59 credits |
$4,000 a year |
Junior/Senior |
60 or above credits |
$5,000 a year |
Parent Loan for Undergraduate Students (PLUS): Under the Federal Parent Loan for Undergraduate Students (PLUS), parents of dependent students may borrow up to the difference between the cost of education minus other financial aid. The interest rate is variable, capped at 9%. The PLUS loan is credit-based, and repayment begins immediately following disbursement.
OTHER WAYS TO FINANCE YOUR EDUCATION
Federal Perkins Loan Program: This is a low-interest (5%) loan made by Barry University, but federally subsidized. It is awarded to you based on exceptional financial need. Repayment begins nine months after leaving school or student dropping below half-time enrollment.
Alternative Loans: If you have utilized all other forms of financial aid and still require additional funding to pay your education, banks and other lending corporations make available education loans which require you and sometimes a co-signer to pass a credit check. These loans vary according to each lender. You should look into them closely before committing to a particular lender in order to determine your responsibilities according to their terms and conditions.
GUIDE TO CHOOSING A LENDER
While Federal Stafford and parent (PLUS) loans are regulated by the federal government; banks and other lending organizations provide the funds for the program. Thus it is necessary for you, the borrower, to choose a lender. It is your right as well as your responsibility, to choose the lender you wish to borrow your Federal Stafford or parent (PLUS) from and then provide that information to us.
If you already have Federal Stafford or parent (PLUS) loans, it is generally best to retain the same lender.
Since student and parent loans are well regulated by the Federal government, there often is no significant difference between lenders. We encourage you to be educated consumers and investigate the features and benefits offered by the various lenders in order to choose the most appropriate lender for your needs. When choosing your lender, pay particular attention to the following:
For all Federal Stafford and PLUS loans there is a guarantee fee up to 1% of the amount borrowed. Some guarantor agents will absorb the fee and that is beneficial to you.
Lenders may charge up to 3% of the amount borrowed as an origination fee. In some cases, some lenders may charge 2%, 1% or in rare cases, no fee at all. This can save you money up front. However, you should also consider the repayment benefits offered and pick the lender with the best overall benefits.
Once you start repayment of your Federal Stafford or PLUS (Parent) loans, each lender may offer financial incentives for on-time payments. In some cases this could be a percent returned to you at the start of repayment, discounts for setting up automatic debits, or reduced interest rates for making on-time payments for a specific period of time. Pay special attention to the fine print, as to receive some benefits you must make consecutive on-time payments for a substantial period of time (24, 36 or 48 months). Missing one payment, sometimes by just one day, may disqualify you from receiving the benefit.
Some lenders will sell your loan to another company after it is fully disbursed. It is important to be aware of this so that you can keep track of your loans. Whenever possible, it is usually best to have all of your loans serviced by the same organization.
Sample Estimated Monthly Repayment Chart
Based on a ten year repayment schedule:
Amount Borrowed |
5% |
8.25% |
Term |
$6,000 |
Monthly Payment = |
$64 |
$74 |
10 Years |
$10,000 |
Monthly Payment = |
$106 |
$123 |
10 Years |
$20,000 |
Monthly Payment = |
$212 |
$245 |
10 Years |
$30,000 |
Monthly Payment = |
$318 |
$368 |
10 Years |
Barry University will process your Federal Stafford and PLUS (Parent) loan through whatever lender you decide to use. However, if you are not sure which lender to choose, Barry University has established a smooth working relationship with these lenders.
Please contact the Financial Aid Office at 1-800-695-2279 or e-mail us at finaid@mail.barry.edu should you require any assistance. |
