Student Loan Information 

US Federal Loan Eligibility

U.S. Citizens and eligible non-citizens may apply for US federal student loans. Students need to be enrolled on at least a half time basis (18 units or more) as a regular degree-seeking student in an eligible program. Continuing students must meet satisfactory academic progress requirements to be eligible for any type of federal financial aid.  The basis for determining loan eligibility is the estimated cost of attendance including actual tuition costs and estimated living expenses which are outlined on http://www.heinz.cmu.edu.au/public-policy-and-management/cost-and-financial-aid/program-cost.asp.  All cost of attendance figures will be converted to US dollars when calculating loan eligibility.  The tuition and estimated living expenses will be calculated for the enrollment period covered by the loan.  Students may borrow to cover allowable education-related expenses for themselves including tuition, fees, room and board, health insurance, transportation and miscellaneous expenses.  A reasonable cost for airfare to Australia and back may be included on a case by case basis per individual student request.  Additionally, students may borrow to cover reasonable childcare costs for their dependent children.  Other family costs are included in the US federal needs analysis calculation and are not eligible for inclusion in the cost of attendance for determining loan eligibility. 

US Federal Perkins Loans

The Perkins loan program is a US federal loan program that provides low interest (5%) loans to students who demonstrate exceptional financial need. No interest accrues on the loan while the student is enrolled on at least a half-time basis, during the nine month grace period, and during periods of deferment.  Repayment begins nine months after the student graduates or is no longer enrolled on at least a half time basis. Perkins loans are administered through the Heinz School and funds are limited.  A separate loan application is not required.  To accept this award, the student must electronically sign a master promissory note at the beginning of the first semester in which they receive a Perkins loan at the Heinz School. Continuing students must meet satisfactory academic progress requirements to be eligible for any type of federal financial aid.

US Federal Subsidized Stafford Loans*

The Stafford loan program is a need-based, US federally subsidized program that enables eligible graduate students to borrow a maximum of $8,500 every two semesters. Interest is subsidized by the federal government while the student is enrolled on at least a half time basis, during the six month grace period, and during periods of deferment.  New federal Stafford loans have a fixed interest rate of 6.8 % for the life of the loan; loan origination and federal default fees of up to 4% may be deducted from the loan proceeds. The loan term may be one, two or three semesters in length.  Stafford loans are disbursed in equal parts, one part at the beginning of each semester covered by the loan.  Repayment of principal and interest begins six months after the borrower graduates or six months after the borrower drops below half time status (18 units). Continuing students must meet satisfactory academic progress requirements to be eligible for any type of federal financial aid.

US Federal Unsubsidized Stafford Loans*

The unsubsidized Stafford loan is similar to the subsidized Stafford loan, except the interest for the unsubsidized Stafford loan is not paid by the federal government. Borrowers may make quarterly interest payments or have the interest capitalized at the time of repayment. Eligible graduate students may borrow a combined maximum total of $20,500 per academic year from the subsidized and unsubsidized Stafford loan programs. The interest rate, fees, and loan term, are the same as stated above for the subsidized loan.

New borrowers are required to complete federal loan entrance counseling prior to loan disbursement.

US Federal Graduate Student PLUS Loans

The graduate student PLUS Loan allows eligible students to borrow up to the published cost of attendance less financial aid from all other sources. PLUS loan borrowers are required to pass a basic credit test.  Students who are denied the loan because of adverse credit history, may obtain an endorser. The PLUS loan interest rate is fixed at 8.5%, which begins accruing upon disbursement. Borrowers are charged a 3% origination fee and, in some cases, a 1% federal default fee. The fees are deducted from the loan amount before disbursement. The loan term may be one or more semesters in length and the loan disburses equally for each semester included in the loan period. Repayment begins when the loan is fully disbursed, however if the student is enrolled on at least a half-time basis, the loan enters in-school deferment status until the student graduates or drops below half-time status.

You may choose one of the following Stafford/PLUS lenders or a lender of your choice.

Alternative Education Loans

Alternative loans are loans extended to students by private lending institutions on the basis of creditworthiness. Applications are available through many banks and lenders; the school, in most cases, must certify your eligibility. A cosigner is required in some cases.

You may choose one of the following loan lenders or a lender of your choice.

• Citiassist Loan
• M&T Bank
• Nellie Mae
• PNC Resource Loan
• Student Loan Xpress
• TERI Loan
• Wachovia
• Academic Financing/Campus Door Loan

Ombudsman Information