FAQs about Federal Student Loans
What is a Federal Student Loan?
Federal Student Loans are educational loans that are in the student's name.
What is the difference between subsidized and unsubsidized?
A subsidized loan is awarded on the basis of financial need. Students will not be charged any interest while in school, during repayment or during deferments. The federal government "subsidizes" the interest during these periods. An unsubsidized loan is not awarded on the basis of need. Students will be charged interest from the time the loan is disbursed until it is paid in full.
What does it mean when it asks me if I want to pay the interest on my unsubsidized loan?
Because students are responsible for all of the interest on their unsubsidized Student Loans, they have the opportunity to pay it while they are in school. If you choose not to make interest payments, the interest will accrue and be capitalized. This mean the interest will be added to the principal amount of your loan, and additional interest will be based on that higher amount.
Who is eligible for a Student loan?
If you are a regular degree-seeking student who is enrolled at least half-time at Roanoke and you have completed your FAFSA form, you may receive a Federal Student Loan.
How do I get this loan?
In order to obtain the Federal Student Loan, students must first complete the FAFSA. Once this is done, Roanoke's Financial Aid Office will award you the Federal Student Loan and will mail you instructions on how to sign your promissory note. This promissory note is a binding legal document; when you sign it, you are agreeing to repay your loan under certain terms. Read the note carefully and save a copy of what you submit.
How much can I borrow from this program?
The amounts you can borrow depend on your grade level in school and on the type of student you are: dependent or independent.
How will I receive my Federal Student Loan funds?
The loan funds will be disbursed in two installments directly to the Financial Aid Office. They will be posted directly to your student account.
Can I cancel the loan if I change my mind, even if I have signed the promissory note?
Yes. The Business Office will notify you via email when the loan credits to your account. You may cancel all or a portion of your loan if you inform Roanoke within 14 days after the date you are sent this notice.
What is the interest rate on the Federal Student loan?
The interest rate is fixed at 3.73%.
Other than interest, is there a charge to get a Federal Student loan?
You will pay a fee of up to 1.059% of the loan.
When do I pay back these loans?
After you graduate, leave school, or drop below half time enrollment, you have a six-month grace period before you begin repayment for 10 years.
Is it ever possible to postpone repayment of a Federal Student loan?
Yes, under certain circumstances, you can receive a deferment or forbearance on your loan, as long as it is not in default. Students are encouraged to contact the Department of Education directly to inquire as to whether they would be eligible for such postponement.
What type of loan debt does a typical Roanoke College student graduate with?
Roanoke Students typically graduate with an average loan indebtedness of roughly $27,000.
What percentage of Roanoke students participate in the Federal Student Loan program?
70% of Roanoke students take advantage of the Federal Student loan.
What is Roanoke College's default rate?
Roanoke College's default rate is approximately 2.9%.