Subsidized Student Loans
Federal Perkins Loans
Federal Perkins Loans are available to students based on funding
and eligibility requirements set by the Federal Methodology. Federal
Perkins Loans are long-term, low interest (5 %)
loans. No interest is charged nor is repayment
required on Federal Perkins Loans while a borrower
is enrolled in school at least half-time. Repayment
begins nine months after a student graduates, leaves
school, or drops below half-time enrollment.
Depending on the amount borrowed, the repayment
period can be up to 10 years. The annual Federal
Perkins Loan limit is $4,000 for undergraduate
students. The aggregate loan amount available for
undergraduate study is $20,000. For more
information, visit the
Federal Student Aid website.
Federal Stafford Loan Program
The Federal Stafford Loan Program offers both
subsidized and unsubsidized student loans. Students
qualifying as needy through application of the
Federal Methodology pay no interest on their loans
while enrolled in school at least half-time; during
the in-school period, the interest is paid by the
government. If a student does not qualify for the
interest subsidy, he or she is required to pay
interest during his or her enrollment period. No
loan principal must be repaid during the in-school
period regardless of the eligibility for the
interest subsidy. Borrowers of both subsidized and
unsubsidized loans do not begin to repay their loan
principals until six months after they graduate,
drop below half-time, or withdraw from school.
The interest rate on subsidized Stafford loans disbursed after July 1,
2008 is fixed at 6.0%. The interest rate on
unsubsidized Stafford loans is fixed at 6.8%.
With respect to subsidized Stafford loan after July 1, 2007, students in their first year of college may borrow up to
$3,500, students in their second year up to $4,500, and
students in their third and fourth years up to $5,500 each
year. The actual loan amount possible is contingent upon the
length of the period of enrollment (one semester or two) and
the student's enrollment status.
For more information, visit the
Federal Student Aid website.
Pomona College Loans
Pomona College Loans are interest free while
the borrower remains in school. During the
repayment, interest is charged at the rate of up to
6%.
In addition, there is also an interest-free program
available on a restricted basis to graduates of
California high schools. Recipients must be U.S.
citizens, enrolled full-time, and be in good
academic standing. In past years, there has been a
family income ceiling for these programs. This
policy is reviewed annually as is the maximum loan
amount available. The special application for this
program is available to admitted students upon
acceptance of an offer of admission.