Federal Student Loans
Youngstown State University offers loan assistance through the Federal Family Education Loan Program (FFELP).  These are low-interest loans made to students attending school at least half time.  YSU participates in the FFELP, where loans are made by a lender such as a bank, credit union, or savings and loan association.  These loans are insured by a guaranty agency and reinsured by the federal government.  Federal loans must be repaid and a Free Application for Federal Student Aid (FAFSA) is required.

Federal Stafford Loans

Federal Stafford Loans have a fixed interest rate set at 6.8 percent for loans disbursed after July 1, 2006.  Stafford Loans are classified as either Subsidized or Unsubsidized.

  • A subsidized loan is awarded based on financial need.  Student borrowers are not required to pay the interest that accrues while enrolled in school.  The federal government pays the interest for subsidized loans for students that are enrolled at least half-time.
     
  • An unsubsidized loan is not awarded based on financial need.  Student borrowers are charged interest while in school.  The borrower may choose to have the interest payment capitalized or deferred while in school.  If the borrower selects to defer interest payments while in school, at repayment, the amount owed will be increased by the interest that has accrued.  If the borrower chooses to pay the interest while in school, the borrower will need to contact their lender to set up payment arrangements. 

Repayment of Federal Stafford loans begins six months after graduation.  An undergraduate will also be placed into repayment six months after leaving school or dropping below half-time.

Eligible students must maintain satisfactory academic progress and cannot be in default on any Title IV aid.  The current fixed Stafford Interest Rate is 6.8 percent.  For more information on Federal Stafford Loans from the Department of Education click here.  (YSU is a FFELP school.)
 

Annual and Aggregate Loan Limits for Stafford Loans
   

Dependent
Undergraduates

Independent
Undergraduates

 Graduate Student
1st year
(Freshman)
 		 $5,500 Max
$3,500 of this amount may be subsidized loans		 $9,500 Max
$3,500 of this amount may be subsidized loans
 		 $20,500 Max
$8,500 of this amount may be in subsidized loan.
 
2nd year
(Sophomore)

Assoc. Degree borrow as 2nd year students
  		$6,500 Max
$4,500 of this amount may be in subsidized loans		 $10,500 Max
$4,500 of this amount may be in subsidized loans
3rd & 4th years (each)
(Junior and Senior)
  		$7,500 Max
$5,500 of this amount may be in subsidized loans		 $12,500 Max
$5,500 of this amount may be in subsidized loans
 
Aggregate Loan Limits for life of student's education
  		$31,000 Max
$23,000 of this amount may be in subsidized loans		 $57,500 Max
$23,000 of this amount may be in subsidized loans		 $138,500 Max
$65,500 of this amount may be in subsidized loans.

The graduate debt limit includes Stafford Loans received for undergraduate study.

Federal PLUS Loan

Federal PLUS loans enable parents of dependent students with good credit histories to borrow funds to help pay for their child's college education.  Dependent children must be enrolled at least half time and have a completed FAFSA on file for parents to have the loan processed at YSU.  These loans, like Federal Stafford loans, are made by a lender such as a bank, credit union, or savings and loan, and are awarded on the basis of the student's cost of education minus other financial aid.

PLUS loans have a fixed interest rate set at 8.5 percent for loans disbursed after July 1, 2006.  For more information on Federal PLUS Loans from the Department of Education click here.
 

Federal Perkins Loans

A Federal Perkins Loan is a low-interest (5%) educational loan available to undergraduate and graduate students with financial need.  Federal Perkins Loan eligibility is based on financial need and is determined by the result of the Federal Student Aid Application (FAFSA).  Students must indicate on the FAFSA that they are interested in student loans to be considered for Perkins and must also attend school at least half-time.  Complete the FAFSA by February 15, as funds are limited.  For more information on Federal Perkins Loans from the Department of Education click here.

 

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Site maintained by:  Office of Financial Aid and Scholarships - Room 203 Meshel Hall
Youngstown State University, One University Plaza, Youngstown, Ohio, 44555
phone:  (330) 941-3505 | email:  ysufinaid@ysu.edu