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Loans may be included in the financial aid
package. You may choose not to borrow the loan(s) or borrow a
lesser amount than offered. Please refer to the instructions
for completing promissory notes.
Federal Direct Loans and Perkins/College
loans shown on your award appear as pending credits on your student monthly statements.
They will show as credits only after the funds have been disbursed.
The Federal Direct Ford Loan is a low-interest
loan to help you meet the costs of post secondary education. Please note that Smith
College is a direct lender of federal funds (the Ford Loan program); for colleges
who are not direct lenders, the federal loan is known as a Stafford Loan. In the
Ford Loan program, the student borrows from the government directly; in the Stafford
Loan program, banks are the lenders.
Eligibility
All students enrolled at least half-time in post secondary education are eligible
to borrow under this program. The federal government requires that you file a Free
Application for Federal Student Aid (FAFSA) to assess eligibility for the in-school
interest subsidy. Additional required forms include signed federal tax returns
and a verification form (if applicable). Students not eligible for the in-school
interest subsidy may still borrow through this program, but will be responsible
for paying interest or allowing it to accrue while they are enrolled.
Loan Limits
The loan limits listed below are maximums. Your financial aid package may show a
lesser amount based on the college's policy of awarding need-based aid. You may
still be eligible to borrow up to the federal maximum, although you may not be
eligible for the interest subsidy on the additional loan amount. You may need to complete a budget sheet in order to have eligibility for additional loan amounts.
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Subsidized |
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Unsubsidized |
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| Maximum Annual Amount |
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$3,500 (1st year)
$4,500 (2nd year)
$5,500 (3rd year)
$5,500 (4th year)
$5,500 (5th year) |
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$6,500
$6,500
$7,500
$7,500
$7,500 |
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| Maximum Cumulative Amount |
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$23,000 |
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$57,000* |
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| *Includes subsidized amounts |
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Interest Rate
The interest rate for Subsidized Loans awarded in the 2009-2010 academic year is fixed at 5.6%. The federal government pays the interest on the loan while the student is
enrolled at least half-time in post secondary education if the student qualifies
based on need for the in-school subsidy. Those who do not qualify for a subsidized
loan have the option of accruing interest while enrolled, or paying interest-only
on a quarterly basis. The interest rate for Unsubsidized Loans awarded in the 2009-2010 academic year is fixed at 6.8%.
Loan Fees
Loans are paid to a student’s account after an origination fee of 1% is assessed.
If a student fails to pay any of the first 12 payments on time, an additional 1%
will be added to the balance owed.
Disbursement
Loan proceeds are disbursed in two equal installments, one per semester. For single
semester enrollment, the entire loan will be disbursed at the beginning of the semester. Students may need to sign a promissory
note and complete an entrance interview before loan proceeds may be applied to
their student accounts. (See the instructions for completing
loan promissory notes.)
Repayment
Repayment begins six months after you graduate, withdraw, or drop below half-time
enrollment.
A Federal Perkins Loan is a low interest, federal
loan made available through Smith College to help students meet the costs of post
secondary education. Smith has limited Perkins funding and funds are awarded at the
discretion of the staff of Student Financial Services.
Eligibility
Your eligibility depends on many factors but is determined by your calculated financial
need. The college requires you to file a FAFSA to have your need assessed. Additional
required forms include signed federal tax returns and, in some cases, a verification
form.
Loan Limits
Student Financial Services determines the amount not to exceed the federal limits
of $4,000 per year, with a cumulative maximum of $20,000.
Fees
None.
Interest Rate
Five percent (5%), beginning nine months after you graduate, withdraw, or drop below
half-time enrollment.
Disbursement
A Federal Perkins Loan is disbursed in two equal payments to the school after a master
promissory note is signed and an entrance interview has been completed.
Repayment
Repayment begins nine months after you graduate, withdraw or drop below half-time
enrollment. The minimum payment is $40 a month. The repayment period is up to ten
years.
Smith College Loans are made available through
private funds administered by Smith College. These funds are limited and loans are
awarded at the discretion of the SFS staff.
Interest Rate
Six percent (6%) beginning six months after you graduate, withdraw, or drop below
half-time enrollment. Interest can be deferred if you enroll at least half-time
in graduate school.
Disbursement
The College Loan is disbursed in two equal payments to the school after you sign
a promissory note.
Repayment
Repayment begins six months after you graduate, withdraw or drop below half-time
enrollment. The minimum monthly payment is $50. |
