Rutgers University participates in the Federal Direct Student Loan Program. Under this program, federal student loans are disbursed directly from the U.S. Department of Education into the borrower’s student account at the university. This eliminates the need for outside lenders, such as banks or other third-party providers. Students must either be U.S. citizens or permanent residents and must file a Free Application for Federal Student Aid (FAFSA) to access these loans. In addition, they must be enrolled at least half time per semester; not be in default on prior loans or owe refunds to a federal grant program; have a valid Social Security number; and register with the U.S. Selective Service Administration, if required. Rutgers Financial Aid Office will advise students of their eligibility for these loans in their financial aid package, and will assist in processing this funding.
The following loans are available through this program:
William D. Ford Federal Direct Subsidized Stafford Loan. This loan is based on financial need. The interest rate is fixed at 6.8 percent for loans disbursed after July 1, 2006. However the government subsidizes this loan and pays the interest while the student is attending school and for a 6 month grace period following graduation or dropping below half-time enrollment. An origination fee of 1% will be charged. Graduate students may borrow a maximum of $8,500 each year. Total Subsidized Stafford Loan debt may not exceed $65,500, including loans for undergraduate years. This loan is no longer available for graduate students as of the 2012-2013 academic year.
William D. Ford Federal Direct Unsubsidized Stafford Loan. This loan is not based on need. All students who meet the eligibility requirements can receive this funding. The interest rate is fixed at 6.8%, and all interest charges must be paid by the student. Interest will begin to accrue as soon as the funds are disbursed. Students may elect to pay the monthly interest charges or to defer those payments until 6 months after graduation or dropping below half-time enrollment. An origination fee of 1% will be charged. Students may borrow up to $20,500 per year. The aggregate lifetime limit for Federal Direct Stafford Loans, including both subsidized and unsubsidized amounts, is $138,500 for a graduate or professional student (including loans for undergraduate study).
Federal Graduate PLUS Loan. The Federal Graduate PLUS Program is a low-interest loan made to law students enrolled at least half-time. Students may borrow up to the cost of attendance minus any other financial assistance. The interest rate is fixed at 7.9% through the Direct Lending Program and there is a 4% origination fee that will be deducted from the amount borrowed. Students will be granted an In School deferment. This loan will go into repayment nine months following graduation or dropping below half-time enrollment. Students with adverse credit or who have filed bankruptcy in the past may be denied.
Federal Perkins Loan. The Federal Perkins Loan is awarded to students who demonstrate the highest level of need through the FAFSA. The amount of the loan is contingent upon available funds. Interest at the rate of 5% begins nine months after graduation, or after the borrower ceases to be enrolled for a minimum of 6 credits per semester; repayment extends over a maximum period of 10 years. Deferment of repayment is permitted for certain kinds of federal service, and cancellation of loans is permitted for certain public service work. Due to federal funding cuts, Rutgers University does not currently offer Perkins Loans to graduate students.
Additional sources of loans are:
Private Educational Loan Programs. Private educational loans, or alternative educational loans, are available to bridge the gap between a student’s financial aid award package and the university’s stated cost of attendance. These loans are credit-based and must be certified by the university. Students should carefully consider the interest rates, loan fees, and terms of the program before selecting a private loan. Since these private loans depend on the credit-worthiness of the borrower and/or co-signer, students should know their credit score, and do everything possible to improve their score before applying. Students can obtain a free copy of their credit report at http://www.annualcreditreport.com/. Additional information is available at the law school, at all university financial aid offices, and online at https://studentaid.rutgers.edu/alc.aspx under “Private Loans.”
Law School Emergency Loan. Students experiencing unexpected financial difficulties may request assistance through the law school’s short-term emergency loan. This loan is interest-free, but must be repaid within 90 days. Loans must be certified by the law school's coordinator of financial aid, and are subject to the availability of funds.
University Emergency Loans. Students who are experiencing a financial emergency may apply for a university loan of up to $500. The interest rate is 3 percent, and the loan must be repaid within the same semester. Emergency need must be demonstrated and funds must be available.
Contact Nicky Fornarotto in the financial aid office, Room 229, at 973-353-1702 or email@example.com