ATTENTION ALL LOAN BORROWERS FOR LOANS ISSUED AFTER JULY 1, 2010: The U.S. Department of Education has mandated that all loans disbursed after July 1, 2010 will be Direct Student Loans (no longer Federal Stafford Loans in which funds are borrowed from a lender, i.e. Citibank, Wachovia, etc.). Please carefully review this document for these important changes.
Information is listed below regarding Stafford Loans, Parent PLUS Loans, Grad PLUS Loans and Private, Credit-Based Student Loans.
Stafford Loans- Annual Loan Limits:
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Student Type |
Max. Subsidized |
Max. Unsubsidized |
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Dependent Freshman |
$ 3,500 |
$ 2,000 |
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Dependent Sophomore |
$ 4,500 |
$ 2,000 |
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Dependent Junior /Senior |
$ 5,500 |
$ 2,000 |
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Independent Freshman or |
$ 3,500 |
$ 6,000 |
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Independent Sophomore or |
$ 4,500 |
$ 6,000 |
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Independent Junior /Senior |
$ 5,500 |
$ 7,000 |
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Graduate Students |
$ 8,500 |
$ 12,000 |
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Interest Rates
Over a four-year period beginning July 1, 2008, the interest rate on subsidized Stafford Loans made to undergraduate students will be reduced. The applicable interest rates for loans made during this period are as follows:
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First disbursement of a loan: |
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Made on or after |
And made before |
Subsidized |
Unsubsidized |
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July 1, 2009 |
July 1, 2010 |
5.6 percent |
6.8 percent |
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July 1, 2010 |
July 1, 2011 |
4.5 percent |
6.8 percent |
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July 1, 2011 |
July 1, 2012 |
3.4 percent |
6.8 percent |
These changes apply to subsidized Stafford loans first disbursed on or after July 1 of each year through June 30 of the next year. This change does not affect any prior loans made to borrowers or subsidized Stafford loans made to graduate students; the terms and interest rates of those loans remain the same. These reduced interest rates apply only to subsidized loans; any unsubsidized Stafford Loan for the same undergraduate borrower would be made at the fixed interest rate of 6.8 percent.
Subsidized vs. Unsubsidized
Subsidized
- Based on financial need as determined by the FASFA and educational costs. Need is simply COA (Cost of Attendance) - EFC (Expected Family Contribution)- it is not related to the estimated financial assistance.
- The federal government pays the interest on the loan while the student is enrolled at least half-time during the student's grace period and during periods of authorized deferment.
Unsubsidized
- Not based on financial need
- The student can elect to pay the interest while in school, or, if not paid, it will be capitalized (added to the principal balance) by the lender.
Stafford Loan Eligibility
Students enrolled in a degree seeking curriculum with a minimum of 6 credit hours.
Non-degree seeking students are eligible for private loans only.
Applying for Stafford Loans
Students who are in need of federal loans must complete the FAFSA.Upon the receipt of the FAFSA, students will be awarded federal loans and will be notified to complete documentation as needed. For specific questions pertaining to loan eligibility, please contact the Financial Aid Office at 561-803-2000.
Dependent students whose parent is unable to obtain a Parent PLUS Loan
- Freshman and sophomore maximum unsubsidized loan portion is raised to $6,000.
- Junior and senior maximum unsubsidized loan portion is raised to $7,000.
Refer to chart above.
Dependency Status
For information regarding Dependency Status as determined by the U.S. Department of Education, please go to the the Dependency Status Worksheet on the FAFSA website.
Private, Credit-Based Student Loans
Students may opt to take out a private, credit based loan. The student may apply online directly through the lender and, upon approval, the lender will send the school loan approval so we may update the students' award package.
- Compare private loans at www.simpletuition.com/pba.
- Before you borrow, learn more about private, student loans at the Wells Fargo Private Student Loan Guide.
Each student has a budget based on the cost of attendance. A budget is the total amount of financial aid a student may receive in an academic year. Students should consult with the Financial Aid Office prior to applying for a private loan to ensure the loan amount does not exceed the student's budget. Additionally, the information provided above is to provide resources. Palm Beach Atlantic University does not endorse or recommend specific lenders.
Parent PLUS Loan
The parents of dependent students may apply for a Parent PLUS Loan. Parent loans are a great resource for some families because parents are able to repay their plus loan over a ten-year period or more and interest can be fixed at 7.9%. Parents may also request payment deferment until after the student graduates and/or is no longer enrolled in at least six credit hours per term.
If a parent applies for a PLUS loan and is not approved, the student will be eligible for additional unsubsidized loans. Please see chart at the top of the page for loan eligibility.
To apply for a Parent PLUS loan, visit the Parent section of the PBA website.
Grad PLUS Loan
Students enrolled in a graduate level program may apply for a Grad PLUS loan, which is a credit-based federal loan with a fixed interest rate of 7.9%. This is also a valued resource for students interested in additional financial assistance. For more information, please visit https://studentloans.gov/.
If you have questions, please contact us:
Sailfish Service Center: (888) 468-6722 or (561) 803-2000
Financial Aid Fax: (561) 803-2130
E-mail