Loans
Bucknell students who demonstrate eligibility for need-based financial aid may borrow funds under several separate loan programs, as determined by the Office of Financial Aid. Since a student loan must be repaid after graduation or withdrawal from the university, it represents a serious commitment on the part of the student.
Federal Perkins Loan
These loans have an interest rate of 5% and repayment begins nine months after you either complete or withdraw from your educational program. Please be aware that we receive a limited amount of Perkins funds from the federal government, so not all students will be awarded this loan.
If you are awarded a Federal Perkins loan, over the summer additional documentation will be sent to you . The Perkins Master Promissory Note (MPN) will only need to be completed the first time you borrow.
In addition, each year you will receive a list of prior and current loan amounts so that you will be better able to monitor your student loan debt.
Federal Stafford Loan
This is a long-term low interest loan, fixed, as of July 1, 2009, at 5.690%. Loan limits per year are $3,500, $4,500, $5,500, and $5,500 respectively.
A subsidized loan is awarded on the basis of financial need, and the government will subsidize the interest while you are enrolled or in deferment.
An unsubsidized loan is not need-based, and you will be charged interest until you have repaid it in full. If you allow the interest to accumulate, it will be capitalized and added to the principal.
Note: New legislation effective 7/1/08 allows for undergraduate students to borrow up to $2,000 in additional Unsubsidized Federal Stafford Loan. However, we do not want to encourage unnecessary borrowing, so if you are interested in pursuing this option, please contact the Office of Financial Aid.
Federal regulations require multiple disbursements of these loans, so you will receive half in the fall and half in the spring. First-time borrowers must complete entrance loan counseling at www.aessuccess.org before the funds may be disbursed. The Stafford grace period is six months, and you may take up to 10 years to repay. Effective 7/1/08, undergraduate aggregate will be $45,000. Remember federal funds will not be posted to a student's Bucknell account until the first day of classes each semester.
For first year and first time borrowers, over the summer Bucknell will electronically send information to the guarantor, AES/PHEAA, and you will receive information about selecting your lender and completing your Master Promissory Note (MPN). If you do not wish to use AES as guarantor, please contact the Office of Financial Aid for further instructions.
For returning students, if you have already completed a Master Promissory Note in a previous year, you do not have to do so again since it only has to be done once.
Federal Parent Loan for Undergraduate Students (PLUS)
This non-need based, credit worthy loan allows parents to borrow for their students’ education expenses. The maximum amount eligible to be borrowed is financial aid cost of attendance minus other aid. The interest rate is currently fixed at 8.5%. Repayment usually begins 60 days after disbursement, but we encourage you to ask your lender of choice if you may be eligible to delay your repayment while your student is enrolled. You may also want to discuss with your lender the option of paying interest only. Lenders may deduct loan fees of up to 4% of requested amount from each disbursement.
Bucknell will begin the certification process in July. If you wish to borrow, we recommend that you borrow for the entire academic year. We suggest that you visit www.elmselect.com for information regarding lenders who have provided Bucknell students and parents with excellent customer service and loan processing over the past few years. The choice of lender is entirely up to you.
In order to prevent your lender from performing multiple credit checks, we recommend that you do not apply for PLUS until June. Please remember that federal funds will not be posted to a student's Bucknell account until the first day of classes each semester.
Extended Unsubsidized Federal Stafford Loan
If a parent applies for and is denied a PLUS loan (see below) due to adverse credit, we need documentation of this denial. The student may then borrow up to an additional $5000. (The maximum for first and second year students is $4000, and the maximum for third and fourth year students is $5000.) You must request and complete our Extended Unsubsidized Federal Stafford Loan form, available upon request beginning in July preceding the academic year.
A Note about Borrowing
It is very likely that you will receive numerous solicitations from lending institutions during the admission and financial aid season. Please know that you may choose any lender(s) that you wish. In making your selections, we suggest that you consider items such as annual maximum loan limits, fees, interest rates (and how often they could change), deferral of payments while in school, and any other questions you may have.
We suggest that you consider Federal Stafford and Federal Parent Loans for Undergraduates (PLUS) before alternative loans, as the federal programs have lower interest rates. Bucknell’s Office of Financial Aid has dealt with a number of lenders in the past, and we will be happy to guide you through the process if you need assistance.
We suggest that you visit www.elmselect.com for information regarding lenders who have provided Bucknell students and parents with excellent customer service and loan processing over the past few years. We are suggesting this website so that you may see for yourself information about the lenders with whom we have experience. The choice of lender is entirely up to you.
Bucknell's Lender Code of Conduct summarizes our terms and conditions with lenders.
