2008-2009 Loans
Stafford Loans
PLUS Loans
Alternative Loans
Stafford Loans
Subsidized Stafford Loan - A need-based student loan with a fixed interest rate (6% effective July 1, 2008). Loan maximum amounts are $3,500 (freshmen), $4,500 (sophomores), $5,500 (juniors and seniors) with a maximum cumulative total of $23,000. Both principal and interest are deferred while the student is enrolled at least half time. Repayment begins six months after completion of studies or leaving college and may extend up to ten years. A 2% fee (1% origination fee charged by the lender and 1% default fee charged by the guarantor) will be deducted from the total amount borrowed.
Unsubsidized Stafford Loan - Students who do not qualify for all or part of the subsidized Stafford Loan program may qualify for an unsubsidized Stafford loan. The interest rate is fixed at 6.8%. Accrual of interest begins at time of disbursement (or the student can choose to pay the interest while still in school by contacting the lender). For dependent undergraduate students, the same maximums as listed for the Subsidized Stafford Loan apply. Independent undergraduate students may borrow up to an additional $6,000* (for freshmen and sophomores) and $7,000* (for juniors and seniors). A 2% fee (1% origination fee charged by the lender and 1% default fee charged by the guarantor) will be deducted from the total amount borrowed.
*these additional unsubsidized Stafford Loan amounts include the recent $2,000 increase mentioned below.
PLEASE NOTE: THE FEDERAL GOVERNMENT HAS RECENTLY INCREASED THE UNSUBSIDIZED STAFFORD LOAN LIMIT BY $2,000 FOR ALL UNDERGRADUATE STUDENTS. IF YOU ARE INTERESTED IN BORROWING THESE ADDITIONAL FUNDS, PLEASE CONTACT THE FINANCIAL AID OFFICE TO CHECK YOUR ELIGIBILITY. |
Application Process
IMPORTANT: ALL first time borrowers must complete an online Stafford Loan Entrance Interview. Once the requirement is complete, notification will be sent electronically to the Financial Aid Office.
| All students must first file the Free Application for Federal Student Aid in order to determine Stafford Loan eligibility. |
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Union College participates in the Federal Family Education Loan (FFEL) Program. Under the FFEL Program, students select the lender of their choice for their Stafford Loan. Union has researched a variety of lenders and has compiled a list of those who provide among the best rates, service and convenience for our students. Union will certify a loan with ANY lender you choose - you are not required to use any of the lenders on our list and will suffer no penalty for choosing a different lender. Union receives no incentive or financial benefit from any lender whether or not they are on Union's list. |
The Following lenders are listed in alphabetical order along with the benefits they are offering for the 2008-2009 academic year - Bank of America, Chase Bank, Citibank, Citizens Bank, Key Bank, and Sallie Mae Education Trust. The benefits were provided directly by the lenders and are subject to change. For specific questions regarding any benefits, please contact the lenders directly:
Bank of America | Apply For Bank of America |
| Benefits | Services |
| 0.25% interest rate reduction for Bank of America Checking or Savings account customers. |
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Chase Bank | Apply For Chase Bank |
Benefits | Services |
0.25% interest rate reduction for borrowers who elect to have their monthly payments automatically deducted from a bank account. |
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Citibank | Apply For Citibank |
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Citizens Bank | Apply For Citizens Bank |
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| Citizens Bank has a complete package of products available for students with our Citizens Bank Everyday Student Banking |
Key Bank | Apply For Key Bank |
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Sallie Mae Education Trust | Apply For Sallie Mae Education Trust |
Benefits | Services |
.25% interest rate reduction for automatic debit of payments. | For loans serviced by Sallie Mae, this benefit will be available during active repayment for as long as the borrower's monthly payment is successfully deducted from the borrower's bank account. |
| Parent Loan for Undergraduate Students (PLUS) | Back to top |
Parents of undergraduate students may be eligible to borrow up to the cost of attending Union (minus other financial aid accepted)* if creditworthy. The PLUS loan has a fixed interest rate of 8.5% and repayment begins 60 days after the funds are fully disbursed. A 4% fee (3% origination fee charged by the lender and 1% default fee charged by the guarantor) will be deducted from the total amount borrowed. Please note – new federal guidelines have made it possible for parents to choose to defer payments on a PLUS loan until six months after the student ceases to be enrolled at least half-time. Accruing interest could either be paid by the parent borrower monthly or quarterly, or be capitalized quarterly. Interested parents should contact their lender directly for more information.
Before determining the amount of PLUS loan needed, please read the following regarding additional unsubsidized Stafford Loan funds.
Application Process
Beginning with the 2008-2009 school year, families will be required to complete the FAFSA in order to borrow a PLUS loan. Parents will apply directly with the lender of their choice. The lender will perform a credit check. Once the credit is approved*, the parent will be instructed to complete a Master Promissory Note. The lender will notify Union College of the pending PLUS loan. The Financial Aid Office will begin certifying PLUS loans in August.
*If the parent is denied a PLUS loan due to adverse credit, the student will be eligible for additional unsubsidized Stafford Loan funds up to $7,000. For more information, please contact the Financial Aid Office directly.
PLUS loans are part of the Federal Family Education Loan Program. Under the FFEL Program, parents select the lender of their choice for their PLUS Loan. Union has researched a variety of lenders and has compiled a list of those who provide among the best rates, service and convenience for our parents. Union will certify a loan with ANY lender you choose - you are not required to use any of the lenders on our list and will suffer no penalty for choosing a different lender. Union receives no incentive or financial benefit from any lender whether or not they are on Union's list. If you choose one of the lenders listed below, you can apply by using the link provided by the lender. If you choose a lender not on the list, contact that lender and they will provide you with more information. |
The Following lenders are listed in alphabetical order along with the benefits they are offering for the 2008-2009 academic year - Bank of America, Chase Bank, Citibank, Citizens Bank, Key Bank, and Sallie Mae Education Trust. The benefits below were provided by the lenders and are subject to change. For specific questions regarding any benefits, please contact the lenders directly:
| Bank of America Lender Code: 824421 Customer Service: 1-800-344-8382 Website: www.bankofamerica.com/studentloans | Apply For Bank of America |
| Benefits | Services |
| 0.25% interest rate reduction for Bank of America Checking or Savings account customers. | Once applied, these benefits can never be lost. Payments can be made in any form. Auto-debit is not required to receive benefits. Free checking, savings, online banking and billpay. Deferments and flexible repayment options are available. Payments made up to 15 days late will be considered "on time". |
Chase Bank | Apply For Chase Bank |
Benefits | Services |
0.25% interest rate reduction for borrowers who elect to have their monthly payments automatically deducted from a bank account. |
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Citibank | Apply For Citibank |
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Citizens Bank | Apply For Citizens Bank |
Benefits | Services |
| Personalized services of our Customer Service Department |
Key Bank | Apply For Key Bank |
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Sallie Mae Education Trust | Apply For Sallie Mae Education Trust |
Benefits | Services |
.25% interest rate reduction for automatic debit of payments | For loans serviced by Sallie Mae, this benefit will be available during active repayment for as long as the borrower's monthly payment is successfully deducted from the borrower's bank account. |
Alternative Student Loan | Back to top |
Union has researched a variety of lenders and has compiled a list of those who provide among the best rates, service and convenience for our students. Union will certify a loan with ANY lender you choose - you are not required to use any of the lenders on our list and will suffer no penalty for choosing a different lender. Union receives no incentive or financial benefit from any lender whether or not they are on Union's list. |
Before determining the amount of an Alternative loan needed, please read the following regarding additional unsubsidized Stafford Loan funds.
Application Process
Students should apply directly with the lender of their choice. Once the student (and co-signer, if applicable) has completed the application process and the loan is approved, the lender will notify Union College of the pending loan. The Financial Aid Office will be certifying alternative loans in August. If you choose one of the lenders listed below, you can apply by using the link provided by the lender. If you choose a lender not on the list, contact that lender and they will provide you with more information.
The Following lenders are listed in alphabetical order along with the benefits they are offering for the 2008-2009 academic year - Chase Bank, Citibank, Key Bank, and Sallie Mae. The benefits below were provided by the lenders and are subject to change. For specific questions regarding any benefits, please contact the lenders directly:
Chase Bank - Chase Select Loan | Apply for Chase Select Loan |
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Citibank – CitiAssist Loan | Apply for CitiAssist Loan |
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Key Bank - Key Alternative Loan | Apply for Key Alternative Loan |
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Sallie Mae Bank Referred by Sallie Mae Education Trust - Signature Loan | Apply for Signature Loan |
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