Federal Stafford Loans
The Federal Stafford loan is obtained from a lending institution and is insured by the federal government.  You are eligible for the Federal Stafford Loan if your financial aid award letter includes the Federal Stafford Loan and/or the Federal Unsubsidized Loan. Federal Stafford loans are loans in the student’s name.  The Stafford loan has a fixed interest rate, an origination fee and the payments are deferred while the student is enrolled.  You are required to begin repayment 6 months after you leave school or reduce your class load to less than 6 credits.  They are included on your award letter as either subsidized and/or unsubsidized based on information from your FAFSA.  First Time Stafford Loan borrowers must complete Stafford Loan Entrance Counseling and a Stafford Loan Master Promissory Note to ensure your Stafford Loans pay into your account.

Subsidized Stafford loans are awarded to students who demonstrate financial need based on information provided on the FAFSA.  The government pays the interest on this loan while the student is enrolled.  The loan has a fixed interest rate of 5.6% and an origination fee of 0.5% (a processing fee charged by the lender that is deducted from the loan before the funds are sent to the school).

Unsubsidized Stafford loans are for students who are not eligible to borrow the Subsidized Stafford Loan as determined by their financial need.  The difference is that you, rather than the federal government, are responsible for the interest payments while you are in school, however you have the option to defer payments. The interest will begin to accrue on the loan once the funds are released to Rider University by the lender.  The loan has a fixed interest rate of 6.8% and an origination fee of 0.5% (a processing fee charged by the lender that is deducted from the loan before the funds are sent to the school).

Additional Unsubsidized Stafford
Additional Unsubsidized Stafford is awarded based on a PLUS Pre-screen denial.  Many lenders offer an online PLUS Pre-screen. If a parent is denied, the student may be awarded additional Unsubsidized Stafford loans.

Federal Perkins Loan
If your financial aid package includes a Federal Perkins Loan, expect to complete the appropriate paperwork and Promissory Note for the loan.  These forms will be mailed to you, or you may complete them at our office. 

Parent PLUS Loan
Parent PLUS and Graduate PLUS loans are optional, credit-based federal loans used to help cover any remaining unmet educational cost.  Qualified borrowers include the parent of a dependent student or a graduate student.  The loans carry a fixed interest rate of 8.5% and a standard 3% origination fee (This fee is deducted from the loan amount before funds are sent to the school.  For example, if your requested borrowed amount is $10,000 with a 3% origination fee, the amount that Rider will receive is $9,700. Please consider this fee when determining the requested borrowing amount).
   
In-school deferment options are available upon request to the lender. Repayment normally begins within 60 days after the full disbursement of a Parent PLUS Loan.  Parents may also choose an option to pay the interest on the loan for a period of 24 or 48 months.
  
How to begin the PLUS Loan or pre-screen process:  Parents may complete a very brief pre-screening, which allows a lender to determine the parent's eligibility for the PLUS loan.  Notice of approval or denial is generally received within 3 minutes if applying online or by phone.  Parents can complete an online Parent PLUS Pre-screen with one of our suggested lenders or you may use any lender you desire that provides PLUS loans.  If a parent is approved, an application, or promissory note, must be completed to initiate the loan process.

Non-Federal Supplemental Loans
These are optional, credit-based loans used to help with the remaining unmet costs. They are generally borrowed by the student with a credit-worthy cosigner. They may have variable interest rates, origination fees and are certified by the school. Please refer to the Supplemental Borrowing Chart for a comparison of some loan options.  If you are planning to utilize a supplemental loan, borrowers must complete an application with their chosen lender.  If requested, be sure to provide supporting documents to your lender.