Federal Perkins Loan
The Federal Perkins Loan is a campus-administered federal program that provides low-interest loans to exceptionally needy students. Interest does not accrue while the student is enrolled at least half-time or during grace or deferment periods.
Federal regulations require that all first time borrowers of Federal Perkins Loans complete Entrance Counseling and a Master Promissory Note (MPN). First time borrowers will receive an email from the Brown University Loan Office with detailed instructions regarding completion of the following requirements:
Federal Perkins Loan Entrance Counseling: Complete Federal Perkins Loan Entrance Counseling on line. This session will give you guidance on managing your student loans both during and after college, and provide information on your Federal Perkins Loan rights and responsibilities.
Federal Perkins Loan Master Promissory Note (MPN): A Perkins Master Promissory Note (MPN) is required before disbursing any Perkins Loan funds to your student account. By signing the MPN, you promise to pay back to Brown University all loan amounts disbursed while enrolled at Brown plus interest accrued. A single MPN covers all Perkins Loans awarded by Brown University for up to ten years.
Students should refer to their financial aid award letter to determine the amount of their annual Perkins Loan. Unless requested otherwise through the Office of Financial Aid, disbursement of any annual amount is generally split across semesters and applied to the student's tuition account.
|Loan Limits||$5,500 Undergraduate per year, $8,000 Graduate per year. Cumulative limits of $11,000 for Undergraduates in years one and two, $27,500 for Undergraduates in years three and four, and $60,000 for graduate/professional students (combined with undergraduate borrowing).|
|Interest Rate||5% Fixed|
|Grace Period||9 month original, 6 month post deferment|
|Minimum Repayment||Minimum of $40 per month over a maximum repayment period of 10 years.|
Direct Subsidized and Unsubsidized Stafford Loans
The William D. Ford Federal Direct Stafford Loan Program provides low-interest educational loans to assist students in paying for educational expenses. The Department of Education acts as the lender, providing funds for Stafford and PLUS Loans.
Students may receive a Direct Subsidized Loan, a Direct Unsubsidized Loan, or both for the same academic year. Qualification for a Direct Subsidized Loan is based on financial need, as determined under federal regulations. A student’s need is not a factor in determining eligibility for a Direct Unsubsidized Loan. Students may qualify for a Direct Unsubsidized Loan regardless of their financial need.
Direct Subsidized Loan: The interest on a Direct Subsidized Loan is paid by the federal government while the student is enrolled in school at least half time, and during grace and deferment periods. (NOTE: The Consolidated Appropriations Act of 2012 temporarily eliminates the subsidy during the 6 month grace period on Direct Subsidized Stafford Loans first disbursed on or after July 1, 2012 and prior to July 1, 2014. The interest will continue to be subsidized while the student is enrolled in school at least half time.)
Direct Unsubsidized Loan: The interest on a Direct Unsubsidized Loan continues to accrue even while the student is in school and during grace and deferment periods. Students are responsible for paying the interest that accumulates, either while in school, or having the interest capitalized until entering repayment.
Disbursement of annual Stafford Loan to the student account must occur in equal payments across semesters for which the student is enrolled at least half time.
The Budget Control Act of 2011 made two important changes to the Direct Loan Program:
1. 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 Direct Subsidized Loans. Direct Subsidized Loans received by any student for loan periods beginning before July 1, 2012 are not affected by this change. (NOTE: It is the beginning date of the loan period that determines whether a graduate student can receive a subsidized loan, not the first disbursement date.)
2. Effective for loans first disbursed on or after July 1, 2012, the law eliminates any repayment incentives to Direct Loan borrowers to encourage on-time repayment of loans, including any reduction in the interest rate or origination fees. As a result, the up-front interest rebate that has been provided to Direct Loan borrowers at the time of loan disbursement will not be offered on any Direct Loan with a first disbursement date that is on or after July 1, 2012. The law continues to authorize the Department to offer interest rate reductions to Direct Loan borrowers who agree to have payments automatically electronically debited.
Loan Amount Limits
Student Level & Dependency Status
Max Stafford (Subsidized and Unsubsidized combined)
|Dependent Junior or Senior*||$7,500||
|Independent Junior or Senior||$12,500||$5,500|
* Dependent students may be eligible for additional Unsubsidized eligibility if parent is denied Federal PLUS Loan.
** See additional information above regarding Budget Control Act of 2011
2013-2014: Loans first disbursed between July 1, 2013 and June 30, 2014 will be charged a 1.051% origination fee.
2012-2013: Loans first disbursed between July 1, 2012 and February 28, 2013 will be charged a 1% origination fee. Due to the impact of Sequestration, loans first disbursed between March 1, 2013 and June 30, 2013 will be charge a 1.051% origination fee.
The loan fee/origination fee is subtracted proportionately from each loan disbursement.
2013-2014: The rates are anticipated to return to 6.8% for all Federal Direct Subsidized and Unsubsidized Stafford Loans.
2012-2013: Fixed at 3.4% for all undergraduate Federal Direct Subsidized Stafford Loans first disbursed on or after July 1, 2012 and before July 1, 2013
Standard: Fixed monthly payments of at least $50 over a maximum 10 year period.
Extended: Fixed monthly payments of
at least $50 over a period of 12 to 30 years.
Income Based: Available as of July 1, 2009, available to borrowers who demonstrate a partial financial hardship. Monthly payments are based on your annual adjusted gross income, your family size, and your state. Payments will not exceed 15% of your discretionary income. After 25 years, any remaining debt will be discharged, but you may have to pay taxes on the amount forgiven.
Federal regulations require that all first time borrowers of Federal Direct Stafford Subsidized and Unsubsidized Loans complete Entrance Counseling and a Master Promissory Note (MPN). First time borrowers will receive an email from the Brown University Loan Office with detailed instructions regarding completion of the following requirements:
(NOTE: To gain access and complete requirements, the student borrower will be required to use their U.S. Department of Education issued Personal Identification Number (PIN). This is the same PIN that you may have used to sign your Free Application for Federal Student Aid (FAFSA). If you do not have a PIN, or can not recall it, please visit the Federal PIN web site at http://www.pin.ed.gov and allow approximately 10 business days to receive it.)
Federal Direct Loan Entrance Counseling: To complete Federal Direct Stafford Loan Entrance Counseling, visit the Direct Loan Servicing Center web site at http://studentloans.gov. This interactive entrance counseling session will provide useful tips and tools to help you develop a budget for managing your educational expenses, and help you understand your loan rights and responsibilities. This session will take approximately 20 minutes to complete.
Federal Direct Loan Master Promissory Note (MPN): To complete a Federal Direct Stafford Loan Master Promissory Note (MPN), visit the U.S. Department of Education Federal Student Aid web site at http://studentloans.gov. When you sign the MPN, you are confirming your understanding that Brown University may make multiple loans for you for the duration of your education (up to ten years) without having to sign another promissory note. You are also agreeing to repay the U.S. Department of Education all loans made to you under the terms of the MPN.
The Brown University Loan Office will receive confirmation from Direct Loan Servicing and the U.S. Department of Education once these requirements have been completed. You should keep copies of the confirmations for your records.
Brown University Loan
The Brown University Loan provides non-federal educational loans made through the University. Interest does not accrue while the borrower is enrolled at least half-time and during the grace period. Students must sign a promissory note at the start of each semester or whenever an adjustment to the loan amount is made. Disbursement of any annual amount awarded is generally split across semesters and applied to the student's tuition account.
|Loan Limits||Established by Financial Aid|
|Interest Rate||9% Fixed|
|Grace Period||6 month|
||Minimum of $25 per month over a maximum repayment period of 10 years.|
Private education loans are available through private agencies and banks. These loans are based on applicant creditworthiness and not a student's financial need. For more information, visit the Financial Aid Office web site.
Installment Payment Plan
Installment Payment Plans are administered by the Bursar's Office. Click here to obtain more information.
Tuition Pre-Payment Plan (TPP) - Undergraduate Students
Parents may prepay two, three, or four years of undergraduate tuition at the rate in effect when the student enters the plan. The cost of the plan will be based on the upcoming year's tuition rate. By prepaying undergraduate tuition, families avoid future tuition increases. Fees such as room, board, and other miscellaneous charges cannot be financed via TPP.
TPP opens each year on March 1 and closes on August 1. Participants may only enter the Tuition Prepayment Plan within this designated time. Families interested in opening a plan beginning Fall 2013 must complete a Tuition Prepayment Plan Agreement and send payment by August 1, 2013.
Steps to initiating a TPP
- Complete a TPP Agreement. Download the form from the link provided. Please type all information so that it is legible, then print the form.
- Return completed form along with payment for respective number of TPP years to Brown University Financial Services. Please note that the form must be signed by the plan participant and must be notarized. Faxed or scanned copies are not acceptable. If payment is to be sent separate from the agreement, the agreement must be received first, along with a letter indicating details where funds are expected from (i.e via wire or a third party).
- A letter confirming enrollment in the TPP will be sent to all participants no later than August 1, 2013 along with a copy of the signed agreement.
Note: Families interested in participating in Tuition Prepayment may want to seek the advice of a tax counsel / accountant about potential tax implications (i.e. withdrawal of funds from an education savings plan).Questions regarding the TPP should be directed to email@example.com.