College of Veterinary Medicine - Cornell University

Loans

Subsidized Loans

Federal Direct Stafford Loans (FDSL)

Students in a professional curriculum who demonstrate need may borrow up to $8,500 per year, to an aggregate undergraduate and graduate limit of $65,000. The interest rate is fixed at 6.8%. Interest is subsidized (paid by the federal government) until loan repayment begins six months after the borrower leaves school. An origination fee of 1.5% of the principal amount of the loan (with an upfront rebate of 1%) is assessed as each loan is disbursed.

The FDSL is expected to be the first self-help loan. Perkins Loans, Health Professions Student Loans, and College grants are offered to eligible students as supplemental to this loan.

Federal Perkins Loan (FPL)

Eligibility is based on current need, prior indebtedness, and prior borrowing of Perkins/NDSL money. Borrowing is limited to $60,000 (undergraduate plus graduate). Payment of principal plus 5% interest begins nine months after full-time enrollment in an eligible program ends.

Health Professions Student Loan (HPSL)

Eligibility criteria are similar to that described for the FPL. However, regardless of the student's age or marital status, complete parental data is required on both the FAFSA and the CSS Profile. The maximum annual loan available is defined as cost of attendance; however, available funds are usually not sufficient to allow maximum awards. Interest is fixed at 5% during the repayment period, which begins one year after the borrower ceases to be enrolled at least half-time.

Unsubsidized Loans

Federal Direct Unsubsidized Stafford Loans (FDUSL)

The Federal Direct Unsubsidized Stafford/Ford Loan for Middle Income Borrowers is intended for those students who do not qualify for (some or all of) the FDSL. A total of $40,500* per year is available through the Federal Direct Stafford/Ford Loan Program. The amount of FDUSL available is the difference between $40,500* and the student's eligibility for the subsidized direct loan. The interest rate and origination fee are the same as for the subsidized Stafford/Ford Loan. The difference is that, although principal is deferred, interest accrues from the date of disbursement.

*for Health Professions students

Federal Direct Grad PLUS Loan

The Federal Direct Grad PLUS loan is available to graduate and professional students who have borrowed the maximum subsidized and unsubsidized loan amounts but still have educational costs that are not covered by other financial aid.  In addition to the FAFSA, this program requires a separate application and approval is based upon a credit history review. The interest rate is fixed at 7.9% and there is a 4% origination fee on the amount borrowed. Direct Loan offers a 1.5% upfront rebate. However, once in repayment, 12 consecutive payments are required or the rebate will be added back into the principal balance of the loan. Interest starts to accrue on disbursement, and repayment starts 60 days after the final disbursement. Students are eligible for an in-school deferment as long as they are enrolled for at least half-time. Standard repayment is 10 years and can be extended to 25 years depending on the amount borrowed.

Summary: Provision of Education Loans Programs

FDSL - Federal Direct Stafford Loan
FPL - Federal Perkins Loan
HPSL - Health Professions Student Loan
FDUSL - Federal Direct Unsubsidized Stafford Loan

Loans offered through the federal student assistance programs are guaranteed for repayment by the federal government should the borrower die or become totally disabled before repayment is completed.

	Subsidized Loans
	FDSL	FPL	HPSL
Annual Maximum	$8,500	$8,000	Cost of Attendance
Aggregate Maximum	$65,000	$60,000 (includes undergraduate Perkins loans)	None
Interest Rate	6.8%	5%	5%
Eligibility Evaluation	FAFSA (no parental data required)	FAFSA (no parental data required)	FAFSA and PROFILE with parental data
In-School Repayment	None	None	None
Origination Fee	.5%(1.5%-1% rebate)	None	None
Insurance Premium	None	None	None
Grace Period	6 months	9 months	1 year
Minimum Monthly Payment	$50	$40	$40
Standard Years to Repay	10 yrs (can go to 25 yrs)	10 yrs	10 yrs

	Unsubsidized Loans
	FDUSL	Grad PLUS loan
Annual Maximum	$40,500 (minus FDSL)***	Cost of Attendance
Aggregate Maximum	Defined by U.S. Dept. of Education*	None
Interest Rate	6.8%**	7.9%
Eligibility Evaluation	FAFSA (no parental data required)	FAFSA (no parental data required)*requires credit check
In-School Repayment	Interest, OR may capitalize	Interest, OR may capitalize
Origination Fee	.5% (1.5%-1% rebate)	2.5%
Insurance Premium	None	None
Grace Period	If have FDSL, 6 months, principal only	None
Minimum Monthly Payment	$50	$50
Standard Years to Repay	10 yrs (can go to 25 yrs)	10 yrs (can go to 25 yrs)

Deferments (see below)

Refer to your copies of loan documents to determine which of the possible reasons for deferment listed below are allowable. The deferments allowed for each individual loan program vary, depending on when you received your loans.

Deferments

• At least half-time attendance
• Limited period of unemployment
• Limited period of economic hardship
• Graduate or post graduate fellowship-supported study outside of U.S.
• Limited period of military service
• National service volunteer
• Approved rehabilitation programs for disabled individuals
• Approved periods of community service activity
• Advanced period of temporary disability
• Limited period of temporary disability
• Full-time graduate study within U.S.

* Total undergraduate and graduate/professional unsubsidized Stafford Loan aggregate limit is $189,125 minus total subsidized Stafford Loans. Aggregate limit for health professions students is $224,000.

** Interest rate for graduate/professional students

*** Amount refers to health professions students