Federal Student Loans
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Youngstown State University awards student loans after eligibility for grants, scholarships, and Federal Work-Study (FWS) is
considered. Student loans must be repaid and a Free Application for Federal Student Aid (FAFSA) is required for all
Federal loan programs. |
Repeated Classes Eligibility
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Under new regulations, students passing a course with a grade of D or
above can retake the same course only one more time to receive financial aid
for that course. Courses taken for a third time are no longer eligible for
financial aid. The new regulations impact Federal Pell Grants, Supplemental Educational
Opportunity Grants, Work Study, Perkins Loans, Stafford Loans and PLUS Loans.
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Graduate Subsidized Loan Eligibility
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The Budget Control Act (BCA) of 2011 was signed into law on August 2, 2011.
This act dictates that effective for loans made for periods of enrollment (loan periods) beginning on or after July 1, 2012, graduate and professional students
are no longer eligible to receive Federal Direct Subsidized Loans.
The terms and conditions of Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012,
for either graduate or undergraduate study, are not affected by this change. The annual graduate limit of $20,500 is also not
affected by this change, however, all funds are awarded as Federal Direct Unsubsidized Loans.
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2012-2013 Federal Loan Changes
The Department of Education has made multiple changes to the Federal Stafford Loan program. In addition to the Graduate
Subsidized Loan Eligibility change summarized above, the following changes have been made to eligible programs:
These changes are effective on loans for which the first disbursement is on or afer July 1, 2012. For detailed information on these changes click here. |
Federal Direct Loan Participation
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Youngstown State participates in the Federal Direct Stafford Loan Program. Stafford loan disbursements will
be funded directly through the Department of Education; there is no involvement from third party lenders or guarantors.
Stafford loan borrowers at YSU must sign a Direct Stafford Loan Master Promissory Note and complete Federal Entrance Loan
Counseling. Studentloans.gov |
Federal Loan Resources
Federal Direct Stafford Loan Information
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Federal Direct Stafford Loans are federally backed student loans. Half-time enrollment is a requirement to secure Stafford
funding. Repayment of Federal Direct Stafford loans begins six months after graduation or when enrollment drops below
half-time. Stafford Loans are classified as either Subsidized or Unsubsidized. For current interest rates on Stafford Loans
click here.
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 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 servicer to set up payment arrangements. |
| Loan Limits | Dependent Undergraduates |
Independent Undergraduates |
Graduate Students |
| 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 loans *as of July 1, 2012, $0 of this amount may be in subsidized loans |
| 2nd year (Sophomore) |
$6,500 max $4,500 of this amount may be subsidized loans |
$10,500 max $4,500 of this amount may be subsidized loans |
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| 3rd & 4th year (Junior and Senior) |
$7,500 max $5,500 of this amount may be subsidized loans |
$12,500 max $5,500 of this amount may be subsidized loans |
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| 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. |
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Eligible students must maintain satisfactory academic progress and cannot be in default on any Title IV aid. For more information on Federal Stafford Loans from the Department of Education click here. |
Federal Perkins Loan Information
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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. Repayment and interest charges are deferred for nine months after the
student graduates or drops below half-time enrollment. Complete the FAFSA by February 15, as funds are limited.
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Federal Parent PLUS Loan
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Visit our PLUS web page for Parent PLUS application and information. |
Federal Grad PLUS Loan Information
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Grad PLUS Loans are federal loans that graduate and professional students with good credit history may borrow to help pay
educational expenses. This federally funded loan has a fixed interest rate, currently set at 7.9%. Half-time enrollment
is a requirement. For more information on Federal Grad PLUS loan from the Department of Education
click here. Youngstown State will participate in the Federal Direct Grad PLUS Loan Program beginning summer semester of 2010. Grad PLUS loan disbursements will be funded directly through the Department of Education; there is no involvement from third party lenders or guarantors. Grad PLUS Application |
