There are several types of loans available. Some loans are available through the government, while others are available through private lenders.
Below, we'll cover what loans may be available to you through Labouré, and what other sources you may consider when looking for private loans.
Federal Direct Stafford Loan—Subsidized and Unsubsidized
This is a low-interest government loan program. The Direct Stafford Loan is the basic undergraduate loan in the United States. The money comes from the federal government, and there is no credit check. The interest rate changes once per year, on July 1. The Department of Education may keep an origination fee that will be deducted from loan proceeds. The origination fee for Direct Stafford Loans disbursed between October 1, 2022 and October 1, 2023 is 1.057%. For the 2022-2023 award year, the interest rate will be fixed at 4.99% (the temporary 0% interest rate for the pandemic has been extended to November 22, 2022). There are lifetime Direct Stafford Loan limits. For Independent students, the lifetime limit is $57,500 with no more than $23,000 in subsidized loans. For Dependent students, the lifetime limit is $31,000 with no more than $23,000 in subsidized loans. Repayment of loans begins six months after one ceases to be a half-time student. Normally, students have 10 years to repay Direct Stafford Loans, but there are various payment plans available that may allow borrowers to extend the 10-year period.
Subsidized means the government pays the interest while the student is attending classes at least half-time and qualifies for a subsidized loan by having need. By regulation, the annual amount a student may receive for Labouré's degree programs is $3,500 as a first-year student, $4,500 as a second-year student, or $5,500 as a third-year student or higher.
Unsubsidized means the borrower is responsible for the interest while enrolled in classes. One may pay the interest while a student or may capitalize the interest and pay it when it is time to repay the loans. A student does not have to demonstrate financial need to qualify for an unsubsidized loan. Independent students may borrow annually $6,000 in unsubsidized loan as first- and second-year students. Combined with the subsidized amount, this is $9,500 in Direct Stafford Loans per year for first-year students and $10,500 in Direct Stafford Loans per year for second-year students. Third-year students and beyond can borrow up to $7,000 per year for a combined total of $12,500 in Stafford Loans per year. Dependent students may borrow annually $2,000 in unsubsidized loans. This means that first-year dependent students can borrow up to a total of $5,500, second-year students can borrow up to a total of $6,500, and third-year or higher students can borrow up to a total of $7,500 in Stafford Loans a year. Also, dependent students whose parents cannot obtain a Federal Direct PLUS Loan may borrow up to an additional $4,000.
Federal Direct PLUS Loan
This is a low-interest unsubsidized federal loan for the parent of a dependent student. For the 2022-2023 academic year the interest rate is a fixed 7.54% (the temporary 0% interest rate for the pandemic was extended through November 22, 2022). The Department of Education may keep an origination fee that will be deducted from the loan proceeds. The origination fee for Direct PLUS Loans disbursed between October 1, 2021 and October 1, 2022 is 4.236%. There is a credit check on the borrower. The funds come from the federal government. If a dependent student’s parent cannot obtain a Direct PLUS loan, then the dependent student may borrow up to $4,000 in unsubsidized Stafford Loan. This is an excellent educational financing option for dependent students.
Nursing Student Loan
This is a fixed-rate (5%) loan through the Department of Health and Human Services specifically for nursing majors. Students have to demonstrate need and meet other eligibility criteria to qualify. Repayment begins after a nine-month grace period, and the monthly payment is $40 per month, perhaps more, depending on amount borrowed. There is limited funding for this loan.
This is known as a private loan. Students apply directly to financial institutions and have to be credit worthy or have a credit worthy co-signer. Private loans are often used by students who need assistance in addition to the Federal Stafford Loan, who require funds for living expenses, or who do not have access to the Federal Stafford Loan. We caution all students to borrow the minimum amount needed to cover education expenses. Labouré College of Healthcare suggests using one of the following two loan comparison tools to find the right loan for you:
- Private Loans - Credible: Credible partners with multiple lenders to be able to offer personalized options for comparison.
- Private Loans - ELM: The lenders shown on the ELM site have been used by Labouré College students within the past three years.
We want to ensure that you are aware that you are not required to use the lenders listed on the ELM or Credible site. Labouré College of Healthcare does not recommend or prefer any one lender over another and will process all eligible loan applications received, even if applied through the lender's site directly, as opposed to ELM or Credible. Please make sure you compare all your lending options and read carefully through the terms and agreements to find the lender that works best for you.