Loans
Lender List
In order to provide the best customer service to our students and parents, Azusa Pacific University has identified several lenders who go the extra mile. We have chosen these lenders based on the following criteria: interest rate reductions offered, loan benefits to the borrower (front and back end), prior experience, online service, and superior customer service. We do not, however, endorse any particular lender. You may choose a lender not on our list, but doing so may result in manual processing. If you wish to choose a lender not listed, please call our office at (626) 812-3009 and we will send you a paper Master Promissory Note to complete.
Continuing Eligibility
You must make satisfactory academic progress to continue receiving loans and financial aid. As an undergraduate student, you must maintain a 2.0 GPA and pass a certain number of units per academic year. Please refer to the undergraduate catalog for further information.Federal Stafford Loan (amounts vary)
This loan program for students is available through many banks, savings and loan institutions, and credit unions. Please note the following facts about the Stafford Loan:
- Applicant must fill out a FAFSA.
- Student must attend at least part time (six units or more).
- A low fixed interest rate of 6.8 percent
- Guaranteed, long-term loan (not based on credit)
- Maximum amounts:
- Freshmen (0 – 27 units), $3,500
- Sophomores (28 – 59 units), $4,500
- Juniors and Seniors (60+ units), $5,500
- Independent students can borrow an additional Unsubsidized Stafford as follows:
- Freshmen and Sophomores, $4,000
- Juniors and Seniors, $5,000
- Repayment begins six months after any of the following:
- Student graduates, drops below part time, or discontinues schooling
What’s the difference between Subsidized and Unsubsidized?
Subsidized is just a big word which means you don’t need to worry about the interest on the loan while you are in school (the government actually pays it for you).
Unsubsidized means you pay the interest on the loan while in school. If you don’t want to pay the interest while in school, you can choose to capitalize it (which means the interest is added to the principle). In actuality, this will mean you have taken out a bigger loan and you end up paying interest on the interest. This option should be avoided if possible.
See the example below: (The example assumes a 10-year repayment term.)
| $3,500 loan; 6.8% interest; 4 years in school | Capitalize Interest | Interest Paid In School |
|---|---|---|
| Amount Borrowed | $3,500 | $3,500 |
| Monthly Interest Payment (while in school) | $0 | $19.84 |
| Interest to Capitalize | $952 | $0 |
| Principal Balance at Repayment | $4,452 | $3,500 |
| Estimated Monthly Payment (once in repayment) | $50 | $50 |
| Total Payments | $5,950 | $5,302 |
| Total Interest Paid | $2,450 | $1,802 |
| Total Savings | $648 |
How is it determined whether it’s Subsidized or Unsubsidized?
Several factors go into this decision, such as other aid, EFC, etc., but it
is determined by the information on your FAFSA. Rest assured that APU will always
offer you a Subsidized loan if you are eligible for one.
| Lender Name (in alphabetical order) | Loan Benefits** |
|---|---|
| ALL Student Loan (888) 271-9721 |
0% origination and default fees 2.25% immediate interest rate reduction (combination of 1% reductions for on-time payments and 1.25% with automatic debit) |
| Nellie Mae (888) 272-5543 |
1.5% origination and 0% default fees 0.75% immediate interest rate reduction of with automatic debit 1% loan credit after making the first 12 payments 2% loan credit after making the first 24 payments 3% loan credit after making the first 36 payments |
| Southwest Student Services (888) 272-5543 |
1.5% origination and 0% default fees 1.75% immediate interest rate reduction with automatic debit 1% loan credit after making the first 12 payments |
| SunTrust Education Loans (800) 552-3006 |
1.5% origination 1% default fees 1.5% principal reduction after making the first 12 on-time payments 0.25% interest rate reduction with automatic debit |
| Wells Fargo (800) 658-3567 |
0% origination and default fees |
**Loan Benefits offered by the lenders are subject to change without notice. This information was last updated 05/01/08.
Parent Loan for Undergraduate Students (P.L.U.S.)
Similar to the Stafford Loan, the Parent P.L.U.S. Loan program is an educational loan authorized by Congress. It is a loan in the parent’s name, taken out in order to help pay for your son’s or daughter’s college expenses. These loans are made available through banks, savings and loan institutions, and credit unions. Please note the following facts about the P.L.U.S.:
- Applicant must complete the FAFSA before applying.
- Student must attend at least part time (six units or more).
- Low fixed interest rate of 8.5 percent
- Repayment begins on the date of the final disbursement. (For most students, this would mean after the spring disbursement.)
How much can I borrow?
The parent can borrow up to the Cost of Attendance (minus any other aid). The Cost of Attendance for most students attending APU is around $36,000 for the 07/08 academic year.
What if I’m denied?
If you apply for the Parent P.L.U.S. loan and are denied, the student is eligible to apply for an additional Unsubsidized Stafford Loan. The maximum yearly amount they can apply for depends on their grade level: $4,000 for freshmen and sophomores, and $5,000 for juniors and seniors.
| Lender Name (in alphabetical order) | Loan Benefits** |
|---|---|
| ALL Student Loan (888) 271-9721 |
3% origination and 0% default fees 2.25% immediate interest rate reduction (combination of 1% reductions for on-time payments and 1.25% with automatic debit) |
| Nellie Mae (888) 272-5543 |
3% origination and 1% default fees 1.25% immediate interest rate reduction with automatic debit 2% loan credit after making the first 48 payments |
| Southwest Student Services (888) 272-5543 |
3% origination and 1% default fees 1.5% interest rate reduction with automatic debit 1% loan credit after making the first 36 payments |
| SunTrust Education Loans (800) 552-3006 |
3% origination and 0% default fees 1.5% principal reduction after making the first 12 on-time payments 0.25% interest rate reduction with automatic debit Parents may request delayed repayment while student is enrolled. |
| Wells Fargo (800) 658-3567 |
3% origination and 0% default fees |
**Loan Benefits offered by the lenders are subject to change without notice. This information was last updated 05/01/08.
Federal Perkins Loan (up to $3,000)
The U.S. government makes funds available to qualified students of very limited means who wish to attend college. Please note the following facts about the Perkins Loan:
- FAFSA is required (early submission is recommended).
- Student must attend at least part time (six units or more).
- Low fixed interest rate of five percent
- Guaranteed, long-term loan (up to ten years with minimum monthly payments of $40)
- Maximum amount is up to $3,000
- Interest accrues upon repayment, which is nine months after any of the
following:
- Student graduates, drops below half time, or discontinues schooling
How can I apply for a Perkins Loan?
Eligibility is based on extreme need as determined by the FAFSA. If you are eligible for a Perkins loan, an application will be sent along with your award letter.
