Student Loan Programs

The Responsibility of Borrowing

It is important to utilize student loans to pay only the cost of your education and to borrow prudently. The loans you take out at Eastern Illinois University will accrue interest . After graduation or dropping below half-time as a student, the process of loan repayment begins. Take your investment in college seriously, if you do not follow your repayment schedule you will be in default which can hurt your credit rating and cuts your eligibility to receive future financial aid.

Please click here to read the university's Student Loan Conduct Code.

The Office of Financial Aid offers entrance counseling to highlight the loan process and student responsibilities as well as exit counseling to explain the repayment process. A student can complete both Entrance and Exit Counseling from this web site

Student loans can be a useful tool in funding your education, but use them wisely. You should be aware of the responsibility that borrowing money to finance your education entails. A student must be enrolled at least 6 hours (half-time) to meet eligibility for Federal Loans.

Federal Perkins Loan Program

The Federal Perkins Loan is a low-interest loan to help students pay for their education after high school for both undergraduate and graduate students. The Perkins Loan Program is a very popular source of student aid due to the very low interest rate. Many students participate in the Perkins Loan Program, and due to its limited funds, the money available goes to those students who apply early and demonstrate need.

Interest Rate on all Perkins Loans is 5.00%

If you accept a Federal Perkins Loan, you will need to complete a Promissory Note, Confidential Information Sheet, and a Rights and Responsibilities Sheet. These forms will be sent after the Award Letter has been returned to the Office of Financial Aid. Fall and spring promissory notes are mailed starting mid-July. Summer promissory notes are mailed starting mid-April.

The loan is repayable once the student is no longer enrolled or enrolled less than six hours for a period of nine months. Once in repayment, loan payments are made to the Student Accounts Office at Eastern Illinois University. Before leaving Eastern, students are required to attend exit counseling conducted by the Student Accounts Office at 217/581-3715. Awards are subject to the availability of federal funds.

Student loan limit for the Federal Perkins Loans:

• Loan limit:
  • Undergraduate-$2,000 per year at EIU ($15,000 maximum)

William D. Ford Federal Direct Loan Programs

These loans are low interest loans made to you to help you pay for your education after high school. There are two kinds of federal direct loans:

1. Subsidized: The subsidized loan is based on need, and the government pays the interest while the student is still enrolled on at least a half-time basis.
2. Unsubsidized: The unsubsidized loan is not need based, so it is available to students regardless of financial need. While the student is still in school the interest is capitalized, or added to the principal if the recipient chooses not to make payments upon the interest. However, students may request to make interest payments while still in school. The money for these loan programs comes from the government. Most students will begin repayment six months after leaving Eastern or dropping below half-time.
   
   Subsidized and unsubsidized Direct loans are low interest loans that do not require a cosigner. Interest rates are fixed. The federal government determines the interest rate for new loans each school year. The interest rate willl not exceed 8.25%. Students must be enrolled at least six credit hours per semester to qualify for a subsidized and/or unsubsidized loan. Repayment begins six months after graduation, or after the student ceases to be enrolled in at least six credit hours.
   
   To apply for Federal Direct Subsidized and Unsubsidized loans, complete the FAFSA at http://www.fafsa.ed.gov.
   
   

   Grade Level	Credit Hours	Base Loan Amt	Add'l Unsub	Total
   Freshman Dependent	0-29	$3500	$2000	$5500
   Sophomore Dependent	30-59	$4500	$2000	$6500
   Junior Dependent	60-89	$5500	$2000	$7500
   Senior Dependent*	90+	$5500	$2000	$7500

   
   

   Grade Level	Credit Hours	Base Loan Amt	Add'l Unsub	Total
   Freshman Independent	0-29	$3500	$6000	$9500
   Sophomore Independent	30-59	$4500	$6000	$10,500
   Junior Independent	60-89	$5500	$7000	$12,500
   Senior Independent*	90+	$5500	$7000	$12,500

   
   

   Grade Level	Credit Hours	Base Loan Amt	Add'l Unsub	Total
   Graduate Student		$8500	$12,000	$20,500

   
   * If attending only one semester as a senior, you will be eligible for less loan.
   
   Maximum total loan amounts:
   Undergrad Dependent - $31,000
   Undergrad Independent - $57,500
   Graduate - $138,500
   
   Dependent undergrad students whose parents are denied a parent PLUS loan are eligible for additional unsubsidized loan amount...freshmen and sophomores $4000, juniors and seniors $5000.

Federal PLUS Loan Program

Parents of dependent students with a good credit history may receive Federal PLUS Loans. PLUS Loans are not based on need, so these loans are made regardless of income level. PLUS loans have a variable interest rate annually. Effective 7-1-08 through 6-30-09 the interest rate is 7.9%. Effective 7-1-08 Parent PLUS borrowers have the option of beginning repayment on the PLUS loan either 60 days after the loan is fully disbursed or not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least a half time basis

Click here to view Direct Loan Basics for Parents

Click here for PLUS Loan Applications

Loan limits for Federal PLUS Loans:

• The entire cost of attendance minus any other financial aid.
  

Short-Term(Emergency) Loans

Short-Term (Emergency) Loans will resume Wednesday, September 9th, 2009

Short-term or "emergency" loans are available to currently enrolled students through the Office of Financial Aid. The Loan Officer determines a student's eligibility and maximum loan amount. Any loan amount exceeding $200 requires a co-signer.

Loan interviews are conducted on Mondays and Thursdays in the Office of Financial Aid. Applications are available in the office or on-line.

Aggregate loan amounts cannot exceed:

Please e-mail Financial Aid for further assistance.
East Wing, Student Services Bldg
(217) 581-3713 phone
(217) 581-6422 fax

Last updated: September 3, 2009

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