Northern Arizona University

4. Need-Based Options

Students with a great financial need are eligible for many awards—including loans, grants, work-study, and state programs—that are specifically designed to benefit them.

Loans

Need-based student loans are appealing because they can be repaid over a long period of time with a low interest rate.

• Another big benefit of loans is that Northern Arizona University is a federal direct lender. That means we lend funds to you directly from the U.S. Treasury, so you don’t have to complete bank loan forms or wait for checks to arrive from lenders. You get the money right when you need it.
  
• These loans are sponsored by the federal government, but Northern Arizona University determines your eligibility and handles processing. All first-time borrowers are required to complete entrance counseling online and sign a Master Promissory Note.

Entrance Counseling

Master Promissory Note

Use this handy online calculator to help you determine your repayment options.

Loan Repayment Calculator

If you currently have a loan, get the latest information on it here.

National Student Loan Data System 

Subsidized Federal Direct Stafford Student Loan

• Maximum amount per academic year:
  Please Note: your dependency status is determined by the US Government

• Maximum amount for dependent students:
  The numbers in brackets are effective beginning July 1, 2007.

$2,625 [$3,500]     (Freshmen)

$3,500 [$4,500]     (Sophomores)

$5,500/year           (Juniors and Seniors)

• Maximum amount for independent students:

$6,625 [$7,500] - no more than $2,625 [$3,500] may be subsidized. (Freshmen)

$7,500 [$8,500] - no more than $2,625 [$4,500] may be subsidized.  (Sophmores)

$10,500/year -  no more than $5,500 maybe be subsidized.  (Juniors and Seniors)

$18,500 [$20,500] -  no more than $8,500 may be subsidized. (Graduate/Professional)

• Interest rate: Varies with a maximum of 8.25% and interest begins accruing once funds are disbursed. However, new Stafford loans disbursed on or after July 1, 2006 will have a fixed interest rate of 6.8%.
  
• Repayment period: several plans available
  
• Repayment and interest charge are deferred until six months after graduation or when your enrollment status drops below half-time (less than 6 credit hours for undergraduates, less than 5 for graduate students). An exit interview is required before you begin repayment.
  
• Apply by completing the FAFSA

Federal Perkins Loan

• Loans are available for undergraduate and graduate students who are enrolled full time
  
• Maximum amount: $2,500/year for undergraduates, $4,000/year for graduates
  
• Interest rate: 5 percent
  
• Repayment period: up to 10 years
  
• Repayment and interest charge can be deferred until nine months after graduation or when your enrollment status drops below half-time (less than 6 credit hours for undergraduates, less than 5 for graduate students).
  
• Priority is given to students showing exceptional financial need.
  
• Apply by completing the FAFSA.

Federal Grants

Federal grants differ from loans in that they do not have to be repaid.

Pell Grant

• Grants are available to undergraduate students without a baccalaureate degree
  
• Award amounts may range from $400/year to $4,050/year
  
• Apply by completing the FAFSA
  
• If you currently have a Pell Grant, get the latest information on it here

National Student Loan Data System

Supplemental Education Opportunity Grant (SEOG)

• Grants are available to undergraduate students without a baccalaureate degree
  
• Award amounts may range from $500/year to $1,500/year
  
• Apply by completing the FAFSA