Type of Loans

FEDERAL LOAN PROGRAMS

PERKINS LOAN:

• Based on financial need as determined by the FAFSA form.
• Loan amounts are subject to budget. (Most loans are between $1,000 and $3,000 per academic year.)
• Interest rate is 5% fixed.
• Interest will not begin to accrue until repayment begins.
• Repayment begins 9 months after the borrower is no longer enrolled at least half-time.
• The loan has a 10-year repayment period.
• There are no fees deducted from the loan.
• Please do not submit your Perkins Loan Master Promissory Note (MPN) and Reference Sheet until you have received your Financial Assistance Notification.
• Click here to see a sample repayment chart for the Perkins Loan.

SUBSIDIZED STAFFORD LOAN:

• Based on financial need as determined by the FAFSA form.
• The annual loan amount is based on the grade level of the student:

• Loans disbursed on or after July 1, 2008 will have a fixed interest rate of 6.0%.
• Interest will not begin to accrue until the borrower enters repayment.
• Repayment begins 6 months after the borrower is no longer enrolled at least half-time.
• The loan has a 10-year repayment period.
• Depending on the lender selected, there will be a 0 - 1.0% fee deducted from the loan proceeds.  There may also be a 1% Federal Default Fee deducted from the loan proceeds. 

UNSUBSIDIZED STAFFORD LOAN:

• Non-need-based funding for students who do not qualify for the full Subsidized Stafford loan. Subsidized Stafford plus Unsubsidized Stafford loan amount cannot exceed:

• The loan will have a fixed interest rate of 6.80%.
• Interest will begin to accrue when the loan is disbursed.
• Repayment begins 6 months after the borrower is no longer enrolled at least half-time.
• The loan has a 10-year repayment period.
• Depending on the lender selected, there will be a 0 - 1.0% fee deducted from the loan proceeds.  There may also be a 1% Federal Default Fee deducted from the loan proceeds.  

ADDITIONAL UNSUBSIDIZED STAFFORD LOAN #1:

• Effective for Unsubsidized Stafford loans disbursed on or after July 1, 2008:

  Dependent and Independent Undergraduate Students $2,000

ADDITIONAL UNSUBSIDIZED STAFFORD LOAN #2:

• Independent students and dependent students whose parent is denied the PLUS loan:

   

  Academic Year	2008-09
  Freshman & Sophomore (0 - 59 units)	$4,000
  Junior & Senior (60+ units)	$5,000

STAFFORD LOAN ENTRANCE COUNSELING:

Federal regulations require that first time Stafford Loan borrowers complete Loan Entrance Counseling prior to the loan being disbursed.  You can complete your Loan Entrance Counseling session online at Mapping Your Future.

STAFFORD LOAN MASTER PROMISSORY NOTE:

The Stafford Loan Master Promissory Note (MPN) is the only time a student is required to complete a promissory note for the Stafford Loan. The MPN can be used for up to 10 years of borrowing for educational expenses. If no loan is funded within 12 months of the original borrower sign date, a new MPN will be required. If you change lenders, a new MPN must be signed. It is therefore recommended that you remain with one lender.

Click here to see a sample repayment chart for the Subsidized and Unsubsidized Stafford Loan.

PLUS LOAN (Parent Loan for Undergraduate Students):

• A completed FAFSA form is required.
• This loan is for Dependent status students only.
• This loan is borrowed in the parent's name only.
• The loan is credit-based and the parent must have a satisfactory credit history.
• The maximum annual amount is the Cost of Education minus other financial aid awarded.
• The loan will have a fixed interest rate of 8.50%.
• Repayment begins immediately after the loan is fully disbursed.
• Deferment or forbearance of payments is available. 
• The loan has a 10-year repayment period.
• A 3.0% fee will be deducted from the loan proceeds.  Depending on the lender selected, there may also be a 1% Federal Default Fee deducted from the loan proceeds.  

Click here to see a sample repayment chart for the PLUS Loan.

If the parent is denied the PLUS Loan, we will e-mail information to the parent regarding Additional Unsubsidized Stafford Loan and Private Loan eligibility.

INSTITUTIONAL LOAN PROGRAMS

Pepperdine University Restricted Loan (Weingart/PURL):

• Eligibility is based on specific criteria set by Pepperdine University and the donor (for example, the student must be a California High School graduate).
• You must be enrolled full-time status in order to receive the PURL Loan. If you drop below full-time status at any time during the semester your PURL Loan will be cancelled.
• Award amounts may vary as determined by the Office of Financial Assistance.
• Interest rate is 0%. The rate will remain at 0% as long as the borrower is not 120 days or more delinquent and is not in default on the loan.
• Repayment begins 6 months after the borrower is no longer enrolled at least half-time at Pepperdine. The loan is not deferrable for future education.
• The repayment period is not to exceed 10 years, but may be less than 10 years, based on the loan balance as determined by Pepperdine University.
• The loan has no fees.

Click here to see a sample repayment chart for the PURL Loan.

PRIVATE LOAN PROGRAMS

Private loans are offered by private lenders. Most lenders that offer Federal Stafford and Federal PLUS loans also offer a private loan. You should exhaust your federal loan eligibility before borrowing a private loan. Eligibility for a private loan is based on the student's and co-signer's (if required) credit history. Most private loans have a variable interest rate. Click here to apply online for a private loan.