Graduate Student Loans

Barry University certifies 3 types of loans for graduate students: federal Stafford loans, federal Graduate PLUS loans, as well as private alternative loans. It is your right as well as your responsibility to choose the lender from which you wish to borrow your loans.

Barry University does not maintain a “preferred lender list”. Your loan will be certified through any lender you select that is eligible to participate in the Federal Family Educational Loan Program (FFELP).

Federal Stafford Loan Program
Federal Stafford loans are low-interest, fixed-rate guaranteed loans available to students attending school at least half time. Stafford loans are the most common source of college loan funds. Benefits include deferred payments while enrolled at least half time, a six-month grace period after you leave school, and no prepayment penalties. There are two types of federal Stafford loan: subsidized and unsubsidized. The interest rate is fixed at 6.8%.

Subsidized Stafford Loan
The federal subsidized Stafford loan is a need-based loan that qualifies for an interest subsidy. The federal government will pay the interest on subsidized Stafford loans as long as you are enrolled at least half time.

Unsubsidized Stafford Student Loan
The federal unsubsidized loan is not need-based. Students are responsible for all accrued interest, and have the option of making interest payments while enrolled.

Federal Stafford Loan Limits
Graduate students may borrow up to $20,500 annually (maximum $8,500 subsidized). The lifetime aggregate limit for Stafford loans is $138,500 (maximum $65,500 subsidized).

Podiatric Medicine students may borrow $40,500 in the first year of study, and $47,167 in the 2nd, 3rd, and 4th years (maximum $8,500 subsidized). The lifetime aggregate limit for Stafford loans is $224,000 (maximum $65,500 subsidized).

Federal Graduate PLUS Loan Program
Federal Graduate PLUS loans are supplemental loans available to graduate and professional students who have borrowed the annual maximum in federal Stafford loans, or have exhausted their lifetime eligibility. This program allows you to borrow up to the full cost of attendance minus any other financial aid received. The interest rate is fixed at 8.5%. Repayment begins 60 days after the loan is disbursed, but you may defer payments as long as you are enrolled at least ½ time. There is no grace period for PLUS loans; however, you may apply for a 6-month forbearance.  Graduate PLUS loans may be consolidated with your federal Stafford loans after graduation.

While you do not need to demonstrate financial need to qualify for a Graduate PLUS loan, you must show that you are credit-worthy by passing a basic credit check. You may not be approved for a Graduate PLUS loan if your credit history includes any of the following during the five years preceding the date of the credit report:

• Delinquency of 90 days or more
• Default determination
• Bankruptcy or loan discharge
• Foreclosure
• Repossession
• Tax lien or wage garnishment
• Write-off of Title IV debt

Please note: You will not be denied a Graduate PLUS loan due to lack of credit history. If you have an adverse credit history, you may still be approved for a Graduate PLUS loan by obtaining a credit-worthy endorser.

Before considering the federal Graduate PLUS loan, you should exhaust your annual eligibility under the federal Stafford loan program first. This will give a significant savings in accrued interest.

Alternative/Private Student Loans
Alternative loans are credit-based education loans offered by banks and other lending organizations; they are not guaranteed by the federal government. Alternative loans are supplemental loans available to graduate and professional students who have borrowed the annual maximum in federal Stafford loans, or have exhausted their lifetime eligibility. This program allows you to borrow up to the full cost of attendance minus any other financial aid received. Alternative loan interest rates are variable depending on your credit score. Students should borrow either an Alternative or a Graduate PLUS loan, not both.

When applying for alternative loans, it is the student’s responsibility to investigate the product and compare interest rates, fees, repayment options, etc as these items change frequently. The following items should be compared when shopping for an alternative loan:

• Origination Fee: This can be a flat amount, or a certain percentage of the amount you borrow. If there is an up-front fee, the amount can either be added or deducted from the amount you borrow.
• Interest Rate: This is an amount charged for the use of your loan and is expressed as an annual percentage of the principal. You will want to determine whether the interest rate on your loan is fixed or variable and whether there is a cap that the interest rate cannot exceed. Some lenders require that you make payments on the interest while enrolled in school, while others will allow the interest to accrue.
• Repayment: Most alternative loans have options to defer repayment until after you graduate. It is important to understand what options are available to you, when, for how long, and what the cost to you will be. In some cases, there is a fee that is charged at the start of repayment. This can be a flat amount, or a percentage of your balance.

Please contact the Financial Aid Office at 1-800-695-2279 or e-mail us at gradfa@mail.barry.edu should you require any assistance.