Rollins participates in the federal Direct Loan program for all federal Stafford and PLUS loans. Rollins has established a Student Loan Code of Conduct. Please note, if you are graduating at the end of fall semester, review information on loan proration as your loan amounts will be impacted.
A federal Stafford loan is a low interest rate loan for students that can be used to help pay for your college education. There are two types of federal Stafford loans: subsidized and unsubsidized.
If you meet certain financial need criteria (based upon information supplied on your FAFSA), the federal government will pay the interest on your federal Stafford Subsidized loan while you attend school at least half time or during times when you qualify for an authorized deferment. Note: Effective July 1st, 2012 the Department of Education has eliminated the interest subsidy on all new federal Stafford Loans for graduate students. All graduate Stafford loans issued with a first disbursement date on or after July 1st, 2012 will be unsubsidized. If you were issued a federal subsidized Stafford loan prior to July 1st, 2012 you will continue to retain your interest subsidy during qualified periods of deferment.
If you do not meet the financial need criteria (based upon information supplied on your FAFSA) to qualify for a Subsidized loan, you still can receive a federal Stafford Unsubsidized loan. You are responsible for paying the interest while you are in school. If you do not make the interest payments, the interest will be added to your principal balance through a process called capitalization.
Unsubsidized loans for undergraduate borrowers first disbursed on or after July 1, 2013 will have a fixed interest rate of 3.86 percent. For graduate students, the interest rate is 5.41 percent.
Subsidized loans for undergraduate borrowers have a fixed interest rate that will be based on the first disbursement date as listed in the table below:
|Interest Rate||Date of Loans|
|5.6%||Loans first disbursed on or after July 1, 2009 and prior to July 1, 2010|
|4.5%||Loans first disbursed on or after July 1, 2010 and prior to July 1, 2011|
|3.4%||Loans first disbursed on or after July 1, 2011 and prior to July 1, 2013|
|3.86%||Loans first disbursed on or after July 1, 2013 and prior to July 1, 2014|
The annual borrowing limit is determined by your degree status grade level and your dependency status (based upon information you supplied on your FAFSA). In addition to annual loan limits, there are also lifetime Stafford loan borrowing limits, also known as the aggregate limit.
|Annual Limits||Dependent Student||Independent Student|
|First Year Undergraduate (0-29 credit hours earned)||$5,500||$9,500|
|Second Year Undergraduate (30-59 credit hours earned)||$6,500||$10,500|
|Third Year and beyond Undergraduate (greater than 60 credit hours)||$7,500||$12,500|
In addition to the annual borrowing limits, there is also an aggregate, or cumulative, lifetime borrowing limit.
With either the federal Stafford Subsidized or Unsubsidized loans, repayment on the principal begins six months after graduation, leaving school, or dropping below half-time status. There are multiple repayment plans ranging from 10 years to 30 years.
New federal Stafford Loan recipients are required to complete entrance counseling. New federal Stafford Loan borrowers are notified and typically complete entrance counseling online as they sign the Master Promissory Note (MPN).
Exit counseling is required for all students who have received a federal Stafford Loan and who are expected to graduate or will not be attending Rollins at least half-time. An exit interview is your opportunity to review the amount of your loans and your rights and responsibilities in repaying these loans.
- Name or address changes
- Failure to enroll at Rollins
- Failure to enroll on at least a half-time basis or for the loan period certified
- Withdrawal from school or reduction of attendance to less than half time
- Transfer from one school to another
If you meet the eligibility requirements, you have a right to repayment deferments, which suspend principal loan payments for specified periods of time.
Federal regulations require Rollins to prorate a dependent or independent undergraduate student's annual Stafford loan limits when you enroll in one semester and will graduate in the same academic year. Typically, this impacts students who will graduate at the end of the fall semester.
Loan Proration Formula:
Loan Proration Example for Full-Time Enrollment:
12 credits enrolled
Loan Proration Example for Half-Time Enrollment:
8 credits enrolled