• First time borrowers such as freshmen and transfer students, should start by looking at Stafford loans.
  
  
• Returning students need take no further action for their Stafford loans unless their Stafford lender for 2007-2008 was MEFA. Due to changes in the Student Loan industry, these lenders are no longer participating in the Federal Stafford loan program, and therefore you will need to choose a new Stafford loan lender.
  
  
• After Stafford loans, you might consider PLUS loans or private loans to cover other charges. However, we encourage all students to consider using their maximum subsidized and unsubsidized Stafford eligibility prior to seeking any alternative loan, as there are many benefits associated with the Stafford Federal Loan Program.

Subsidized Stafford Loan
This is a federally subsidized loan, which means that the government pays the interest to the lender while you are enrolled at least half time, and for six months after you leave school or drop below half time. This six-month period is called a grace period. Deferment information is available here.

Eligible undergraduates may borrow up to $3500 in the first year, $4500 in the second year, and $5500 in each of the third and fourth years. The undergraduate interest rate for 2008 - 2009 is 6% and fees are around 2%, depending on lender chosen.

Unsubsidized Stafford Loan
If you are not eligible for a Subsidized Federal Stafford Loan (or if your parent has been denied a Federal PLUS loan) you may borrow an Unsubsidized Federal Stafford Loan. All interest charges are the responsibility of the borrower: 6.8% fixed for the life of the loan. Fees are around 2% depending on the lender chosen. Borrowers can choose to make interest payments by checking off the box on the MPN. You may choose to capitalize the interest (add interest charges to the amount owed) but this will significantly increase the total amount of your debt burden at repayment. Students may borrow up to their grade level maximum, which is the same as the Subsidized Stafford loan (plus an additional $6000 to $7000 for undergraduates, if due to a PLUS denial. These additional amounts have increased from previous years.) 

NEW:  Students who borrow their maximum grade level with the Subsidized Stafford can now also borrow an additional $2000 in Unsubsidized Stafford loan, even if a parent PLUS has not been denied. Concerned about loan indebtedness, and the impact of loan repayment on future quality of life, we encourage students not to borrow unless absolutely necessary.

Choosing a Stafford Loan Lender
ENC has a process to review the loan offerings of most of the major lenders. Based on this review we provide a list of the lenders who offer competitive rates and borrower benefits as well as superior customer service. Be assured that ENC receives no benefits, financial or other, from these lenders for being chosen to be on our preferred lender list. And, if you wish, you are still entitled to use any lender of your choice. With the quickly changing loan market there are times that loan providers could offer better benefits than our Lender List. As of this writing www.aaa.com and www.discoverstudentloans.com have 0% fees on their Stafford loans and are worth looking into even though we can not vouch for their reliability or customer service.

ENC Stafford Preferred Lender List

When considering a PLUS loan, keep the following points in mind:

• As of July 1st 2008 PLUS loans can be deferred until 6 months after their dependent, undergraduate student is enrolled in school at least half-time.
  
  
• Interest rate on a PLUS Loan is fixed at 8.5%. The rate is determined by the federal government.
  
  
• Origination/Guarantee fee of 3% will be assessed by most lenders. These fees are subtracted from the amount borrowed.
  
  
• Borrower must be a U.S. citizen or permanent resident.
  
  
• Student must also be a U.S. citizen or permanent resident, and must be making satisfactory academic progress towards a degree.
  
  
• Borrower must pre-qualify (pass a credit check). After pre-approval, or pre-qualifying, a borrower is required to complete a Promissory Note. The Promissory Note is completed during the application process from one of the lenders on our list or any other lender that you chose to use.
  
  
• Applicants may borrow up to the cost of attendance less other financial aid.
  
  
• Most PLUS loans are made to cover fall and spring semester costs. The loan funds are disbursed (minus fees) in two equal payments, 1/2 for the fall semester and 1/2 for the spring semester.
  
  
• The maximum repayment term is 10 years.
  
  
• If a PLUS is borrowed and the parent borrower is subsequently permanently disabled, or deceased, the loan is forgiven.

Choose a PLUS Loan Lender
ENC has a process to review the loan offerings of most of the major lenders. Based on this review we have chosen the lenders who offer competitive rates and borrower benefits as well as superior customer service. Be assured that ENC receives no benefits, financial or other, from this lender for being chosen to be on our preferred lender list. And, if you wish, you are still entitled to use any lender of your choice. With the quickly changing loan market there are times that loan providers could offer better benefits than our Lender List. As of this writing www.aaa.com and www.discoverstudentloans.com have zero fees on their Stafford loans and are worth looking into even though we can not vouch for their reliability or customer service.

ENC Plus Loan Preferred Lender List

We encourage all students to consider using their maximum Subsidized and Unsubsidized Stafford eligibility prior to seeking any alternative loan, as there are many benefits associated with this federal loan program.

There are a variety of banks and private lenders who offer alternative loans for financing education costs for undergraduate students and their families. Eastern Nazarene College has a process to review the loan offerings of most of the major lenders. Based on this review, we have chosen the lenders who offer competitive rates and borrower benefits as well as superior customer service. Be assured that Eastern Nazarene College receives no benefits, financial or other, from these lenders for being chosen to be on our preferred lender list.

You are under no obligation to borrow from one of these lenders. If you would like to borrow from a lender who is not on this list, you can simply select the lender of your choice and apply directly with that lender. The lender will be responsible for getting your loan information to us.

ENC Private Loan Preferred Lender List