Types of Loans

Baker College currently offers loans through the Federal Family Education Loan Program (FFELP).

This loan program offers low interest rate loans to students and parents, and is available to all qualified students (undergraduate and graduate) regardless of financial need. The student must attend at least half-time to be eligible for any type of loan. Remember, these loans must be repaid.

Federal Stafford Loans
Federal Stafford Loans are available to student borrowers at a fixed interest rate (for new loans disbursed on or after July 1, 2006). Up to a 2.0 percent fee will be taken from each loan disbursement (see Benefits and Fees for detailed information). There are two types of Federal Stafford Loans:

• Subsidized Stafford Loan eligibility is based on financial need. Under this loan program, the student is not required to make any payments while he/she is in school at least half-time; no interest will be accumulated during this time.  The interest rate is 6.0 percent for new loans disbursed on or after July 1, 2008 (for loans prior to this date, contact your lender for the current interest rate).
  
• Unsubsidized Stafford Loan eligibility is not based on financial need. Under this loan program, the student is not required to make any payments while he/she is in school; however, interest will accumulate if not paid by the borrower.  The interest rate is 6.8 percent for new loans disbursed on or after July 1, 2008 (for loans prior to this date, contact your lender for the current interest rate).

Loan Limits for Dependent Students

Grade Level	Base Amount	Additional Unsubsidized **
Freshman	$3,500	$2,000
Sophomore	$4,500	$2,000
Junior/Senior	$5,500	$2,000
Aggregate Undergraduate	$23,000	$8,000

Loan Limits for Independent Students

Grade Level	Base Amount	Additional Unsubsidized **
Freshman	$3,500	$6,000
Sophomore	$4,500	$6,000
Junior/Senior	$5,500	$7,000
Graduate	$8,500	$12,000
Aggregate Undergraduate	$23,000	$34,500
Aggregate Graduate	$65,500	$73,000

** Dependent students whose parents cannot borrow under the Federal PLUS
     loan program are eligible for the independent student amounts listed above.

Federal PLUS Loans
Federal PLUS Loans are available for parents of eligible undergraduate students at a fixed interest rate of 8.5 percent (for new loans disbursed on or after July 1, 2006). Up to a four percent fee will be taken from each loan disbursement (see Benefits and Fees for detailed information).

Federal Graduate PLUS Loans
Federal graduate PLUS Loans are available for graduate students at a fixed interest rate of 8.5 percent (for new loans disbursed on or after July 1, 2006). Up to a four percent fee will be taken from each loan disbursement (see Benefits and Fees for detailed information).