Federal Perkins Loan Program
This federal loan program, which is administered by the college, provides loans to students who demonstrate financial need. Our Financial Aid Office determines the amount of the loan, and the loan is repayable at five percent interest beginning nine months after graduation or termination of studies. The loan may be repaid over a ten-year period. The average loan from this source at Randolph-Macon is approximately $2,000 per year. The maximum total amount that can be borrowed for undergraduate study is $12,000.
Federal Subsidized Stafford Loan Program
This federal loan program provides loans to students who demonstrate financial need. The FAFSA determines eligibility for this loan. Students may borrow up to $3,500 for the first year, $4,500 beginning 2007-2008 for the second year, and $5,500 per year thereafter, for an aggregate of $23,000 for undergraduate study. The student begins repayment of principal and interest six months after graduation or termination of studies at an interest rate currently at 6.0% beginning July 1, 2008.
Unsubsidized Federal Stafford Loans
This lending option is available to students who do not qualify for the need-based Federal Subsidized Stafford Loan. It has the same terms as the Subsidized loan except that interest accrues on the pricipal loan amount while the student is in school. The student has the option of paying the accumulating interest or deferring it until the loan enters repayment. The application procedure is the same as for the Federal Subsidized Stafford Loan. The student begins repayment of pricipal and interest six months after graduation or temination of studies at an interest rate currently at 6.8% beginning July 1, 2008.
Plitt Parent Loan
The Plitt Parent Loan Fund, through Randolph-Macon College, offers loans of up to $20,000 per academic year. Repayment begins one month after the loan is disbursed. Eligibility normally extends to those parents whose incomes range from $30,000 to $75,000+ per year. The rate of interest currently is 5.0%. Inquiry should be made to the Financial Aid Office.
The Federal Parent Loan for Undergraduate Students (PLUS)
The Federal Parent Loan for Undergraduate Students (PLUS) program is a federal endeavor to make comparatively low-interest loans available to parents of full-time post-secondary students. Parents may borrow up to the annual cost of the education less any financial aid at an interest rate currently at 8.5%. Repayment begins 60 days after the full loan has been disbursed. Some commercial lenders participating in the PLUS program may offer deferred repayment options. Arrangements for deferred or other repayment options must be made directly with the lender and is at their discretion. Students are not required to file a FAFSA for parents to qualify for a PLUS.
Alternative/Private Loans
In addition to the loan programs listed above, students may be eligible for alternative or private loans. Students apply directly with a bank or lender of their choice. Interest rates and repayment options differ per lender. Please visit our Alternative Loans section or the FinAid website for additional information.