Loans available

U.S. citizens or eligible non-citizens who are enrolled at least half time in a degree program, making satisfactory academic progress, and not in default or owing a return repayment on a grant or loan are able to borrow from a U.S. bank or lender some or all of the costs of their attendance at Monash University using the loan options offered under the Federal Family Education Loan Program (FFELP).

The U.S. Government guarantees these loans and generally the interest rates charged are lower than other commercially available loans. Some components of these loans may also be subsidised by the U.S. government and the interest charged on subsidised components is paid for you whilst you remain in study greater than half time.

FFELP offers the following loans to eligible Monash University students:

Federal Subsidized Stafford Loan

This loan is based on financial need as determined by the U.S. Department of Education. The U.S. federal government pays the interest while you are enrolled at least half time in university, during authorized periods of deferment and for the six-month grace period after you leave university or drop below a half time enrolment.  Although you are not required to make payments whilst you are studying, you will commence repayment six months after you graduate, leave university, or drop below half-time enrolment.

Federal Unsubsidized Stafford Loan

This loan is not based on financial need. You are responsible for paying the interest that accrues on the loan from the time the loan is disbursed. The interest may be paid as it becomes due, or it may be allowed to accumulate while you are in university, during any authorized period of deferment, and for the six-month grace period after you leave university or drop below half time enrolment. Allowing the interest to accumulate adds to the amount you will have to repay on your loan when you leave university, and it may increase the amount of your monthly payments.

Federal PLUS (Parent Loan for Undergraduate Students)

This loan is not based on financial need, but borrowers are required to pass a credit check. Parents are eligible for this loan if their child is a dependent undergraduate student as defined by the U.S. Department of Education, if they meet certain credit guidelines and if the loan is certified by the University. Payments are due within 60 days after the loan is fully paid out, although deferment of payment may be available through selected lenders. Interest begins to accrue when funds are disbursed and repayment begins within 60 days after the loan has been fully disbursed.

Federal Graduate PLUS Loan

Congress has expanded the eligibility for the PLUS loan program to include Graduate or professional students into the PLUS program.  Graduate students are strongly encouraged to apply for both subsidized and unsubsidized Federal Stafford loans before applying for a Graduate PLUS.  Repayment begins within 60 days after the loan has been fully disbursed unless an In-School Deferment form is completed, or the lender activates an automatic deferment.  PLUS loans do not have a grace period and repayment begins immediately after an In-School Deferment ends.

** A 3% origination fee is mandated by law on all PLUS loans and 1% default fee is paid by some lenders on behalf of borrowers.

2008-2009 Interest rates

Loans first disbursed on or after July 1, 2008 will have the following fixed-loan interest rates:

Subsidized Stafford Loan (Undergraduate students) – 6.0%
Subsidized Stafford Loan (Graduate students) – 6.8%
Unsubsidized Stafford Loan (Undergraduate & Graduate students) – 6.8%
FFEL PLUS loan (Undergraduate & Graduate students) – 8.5%

Aggregate limits

The maximum limits of Federal Stafford Loans are as follows (all in U.S. dollars):