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Loan Types

Below is some information that will help you get started on your search for the best loan program to meet your needs. Roosevelt University participates in the Federal Direct Lending Program.

Federal Direct Subsidized Stafford Loan Program

This program consists of low interest rate loans borrowed from the federal government. Interest payments on these loans are deferred. Annual maximums limits are:

2014/2015

  • $3,500 freshmen
  • $4,500 sophomores
  • $5,500 juniors and seniors
  • $0 for graduate-level applicants
  • $5,500 PARALEGAL Students

The interest rate is a fixed rate of 4.66% for loans first disbursed between July 1, 2014 - June 30, 2015.

A processing fee is assessed at 1.072% for federal loans disbursed between December 1, 2013 - September 30, 2014.
A processing fee is assessed at 1.073% for federal loans disbursed between October 1, 2014 - September 30, 2015.

You must be enrolled at least half-time and meet other federal financial aid eligibility requirements to participate in the federal direct loan program. Loans must be repaid!

Federal Direct Unsubsidized Stafford Loan Program

This program is similar to the Federal Direct Stafford Loan program; however, it is targeted to students who have partial or no Federal Direct Stafford Loan eligibility.

Annual maximums limits for independent students are:

2014/2015

  • $9,500 freshmen
  • $10,500 sophomores
  • $12,500 juniors and seniors
  • $20,500 graduate-level applicants
  • $12,500 PARALEGAL students

The interest rate is a fixed rate of 4.66% for loans first disbursed between July 1, 2014 - June 30, 2015.

A processing fee is assessed at 1.072% for federal loans disbursed between December 1, 2013 - September 30, 2014.
A processing fee is assessed at 1.073% for federal loans disbursed between October 1, 2014 - September 30, 2015.

Annual maximums limits for dependent students are:

2014/2015

  • $5,500 freshmen
  • $6,500 sophomores
  • $7,500 juniors and seniors

Aggregate loan limits are the same as subsidized direct Stafford loans, less amounts borrowed under that program. Interest rates are the same as the subsidized direct Stafford loan except the borrower is responsible for accrued interest. The interest rate is a fixed rate of 4.66% for loans first disbursed between July 1, 2014 - June 30, 2015 for undergraduate students. The interest rate for Graduate or Doctoral Students is a fixed rate of 6.21% for loans first disbursed between July 1, 2014 - June 30, 2015. This interest may be capitalized at the borrower’s request.

You must be enrolled at least half-time and meet other federal financial aid eligibility requirements to participate in the federal direct loan program. Loans must be repaid!

Federal Direct PLUS/Graduate PLUS Loan

Federal Direct PLUS/Graduate PLUS Loans enable parents, or graduate students, to borrow up to the cost of education minus other financial aid for each child (or yourself if a graduate student) enrolled at least half-time who is a dependent student (not applicable for graduate students).

This amount is in addition to the direct Stafford limits, but the total may not exceed the cost of education. The interest rate for these loans is fixed at 7.21% for loans first disbursed between July 1, 2014 - June 30, 2015.

In addition a processing fees is assessed at 4.288% for loans disbursed between December 1, 2013 - September 30, 2014 and 4.292% for loans disbursed between October 1, 2014 - September 30, 2015.

The student must be enrolled at least half-time and meet other federal financial aid eligibility requirements to participate in the federal direct loan program. A Free Application For Federal Student Aid (FAFSA) must also be submitted.

Dependent student’s whose federal direct PLUS application has been denied are eligible to receive the Unsubsidized direct Stafford Loan in the amount up to the maximum eligibility for his/her academic level. The loan cannot exceed the cost of attendance budget. Loans must be repaid!.

Private Loans

Private loans, also called alternative loans, are credit-based loans offered by lenders and other financial institutions. Eligibility for most of these loan programs is based on the creditworthiness of the borrower and the borrower may require the assistance of a parent or another credit-worthy co-signer. Private loan programs are alternate options that can assist with bridging the gap between the cost of attendance and the financial aid awarded.

These loans are meant to provide additional educational funding only after a student and his/her family has exhausted all other sources of funding such as Federal and State aid.

These loans are not guaranteed by the Federal government and often carry higher interest rates and origination fees than the federal loan programs. All require credit checks and most will require a co-signer if the borrower has little or no credit history. Private loans cannot be consolidated with other educational loan borrowing in the future.

How do I apply for a Private Loan?

Students are required to select the lender of their choice for a private loan. While Roosevelt University does not maintain a list of lenders and does not recommend a specific lender(s), we do advise that borrowers consider the following when applying for a private loan:

  • Conduct your search online and choose lenders or financial institutions that are credible
  • Thoroughly research all terms and features of the loan (interest rates and how they are determined, applicable fees, grace periods, lengths of repayment terms, co-signer release availability, borrower benefits or incentives)
  • Determine if you will be required to make payment(s) on the loan while you are enrolled in school
  • Try to only borrow the amount absolutely necessary to cover your unmet costs to reduce loan indebtedness
  • Inquire if there is an aggregate maximum, or a limit to how much you can borrow over a lifetime, with the lender

Once you have chosen your lender, you will begin the loan application process directly with the lender on the lender’s website or via a paper loan application. The lender will communicate directly with you regarding the approval of your loan application and any additional items needed. The Financial Aid Office confirms your enrollment at the University to the lender and applies the loan funds received from the lender to your student university account.

Private Loan terms to know

The following are terms that you may encounter during the private loan application process:

Loan Period

This refers to the period during which you wish to receive your loan. We recommend that you apply for an alternative loan for the entire academic year for which the loan period would be from August to May of that year (i.e., 08/01/2014 to 05/30/2015).

Loan Certification

The Financial Aid Office will receive a request from the lender to confirm your enrollment at the University. It may take up to 7-10 business days from the day we receive the request to certify your private loan. RUAccess is updated by the Financial Aid Office when certification has been completed and the loan has been added to your financial aid award.

Loan Disbursement Date

The disbursement date for a loan is scheduled by the lender once the loan has been certified by the Financial Aid Office.

Loan Disclosures

The Higher Education Opportunity Act requires that student borrowers submit three loan disclosures provided to them by their lender during the application process: Application Disclosure, Approval Disclosure, and the Final Disclosure.

Once you complete and submit these disclosures to the lender, the lender will request that the Financial Aid Office confirm your enrollment to the lender. You will also receive a Self-Certification Form that must be completed before any loan funds are disbursed.

The purpose of these disclosures is to:

  • Present the terms and costs of the loan in a clear and consistent manner
  • Allow for comparison shopping and re-evaluation of borrowing a private loan during the application process
  • Present lower cost federal options that should be exhausted prior to considering a private loan
  • Reduce overall borrower indebtedness

Loan Timeline

The overall process of applying for a private loan to the time the funds are paid to your University account can take an estimate of 2-3 weeks. The timeline below outlines all the steps that need to occur before the funds are made available.

  • Step 1: Student completes their section of the online application and accepts the Application Disclosure
  • Step 2: Co-signer completes their section of the application and accepts the Application Disclosure
  • Step 3: Loan is credit approved
  • Step 4: Student accepts and e-signs Approval Disclosure, and downloads Self-Certification Form
  • Step 5: Co-signer accepts and e-signs Approval Disclosure
  • Step 6: Lender requests school certification
  • Step 7: Student completes and submits Self-Certification Form to the lender
  • Step 8: School completes certification and sends to the lender
  • Step 9: Final Disclosure is sent to the student
  • Step 10: Loan application undergoes a federally-mandated, 6-10 business day rescission period. The loan disbursement cannot be made until this period has ended, allowing the borrower time after certification to request the cancellation of the loan
  • Step 11: Disbursement of funds from the lender to the University
  • Step 12: Loan funds are paid to University account balance
  • Step 13: A refund is issued by the Student Accounts Office if there are funds in excess of the amount owed

 


FATV - Loan Programs