Northern Arizona University

5. Non-Need-Based Options

Non-need-based awards include programs for both students and parents. While most of these awards are given to students regardless of their financial need, some have specific eligibility requirements.

Loans

Non-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 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.
  
• The first two loans listed below 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.

Entrance Counseling

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

Loan Repayment Calculator

Unsubsidized Federal Direct Stafford Student Loan
Please note: your dependency status will be 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 charges can be 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
  
• If you currently have a loan, get the latest information on it here.

National Student Loan Data System

Federal Direct Parent Loan for Undergraduate Students (PLUS)

• Maximum amount: the difference between your total cost of attendance and the amount of other financial assistance you receive each year
  
• Interest rate: varies annually with a maximum of 9 percent, and interest begins accruing once funds are disbursed
  
• Repayment: Several plans are available, but repayment begins when funds are distributed.
  
• Apply online at www.dlenote.ed.gov. You will also need the Plus Loan Addendum from the Office of Student Financial Aid. 

Alternative/Private Loans

• For students who have exhausted all federal and state financial aid funds
  
• Maximum amount: the difference between your total cost of attendance and the amount of other financial assistance you receive each year
  
• Interest rate: varies depending on lender
  
• Repayment: plans vary depending on lender
  
• For more information about alternative loans, including a list of recommended lenders, please visit http://www4.nau.edu/finaid/types_of_aid/altloan.html
  

Federal Grants

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

Veteran Benefits

• You may qualify for Montgomery G.I. Bill benefits if you enlisted in the military as active duty or selective reserve status
  
• You may also qualify for assistance if one or your parents is/was a military veteran
  
• Apply by contacting your Veterans Affairs regional office
  

Step 6: Employment