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Loans

Federal Stafford Loans

The Federal Stafford Student Loan Program enables both need-based and higher income students to apply for this loan. The government pays the interest on need-based loans; the non need-based loans require the student to pay the interest while in school. The interest rate is set each July 1 for the next year and is a variable rate not to exceed 8.25%. Students begin repaying these loans six months after they graduate, stop attending school at least half-time, or withdraw from school at a payment of at least $50 per month. The Financial Aid Office will conduct an entrance interview before the student receives their first loan, and an exit interview at the conclusion of the student's enrollment at Lambuth, if the student becomes enrolled for less than half-time, or withdraws.

Federal PLUS Loan Program

The Federal PLUS Loan Program is a non-need based source of funds available to the parent of a dependent undergraduate student. If a student is independent or his/her parents cannot get a PLUS loan, students are eligible to borrow additional Stafford Loan funds. Parents may apply to borrow up to the cost of attendance minus financial aid. The interest rate is variable, set each July 1, and is usually around seven to nine percent. The maximum allowed by law is nine percent, and may vary depending on the date of the first loan borrowed.

Federal Perkins Loan

The Federal Perkins Loan is funded by the federal government but is administered by Lambuth. Under this low-interest loan program, undergraduate students may receive a maximum of $4,000 per year for an aggregate amount of $20,000. Students begin repaying these loans nine months after either completing their education or leaving school. No interest is charged until repayment begins, and then a five percent annual charge is applied to the unpaid balance. Repayment may be extended up to ten years, at not less than $40.00 per month. Loan cancellation and deferment options are available. Each recipient must request an exit interview with the Loan Management Office upon graduation or termination of enrollment at Lambuth.