How do I apply for a student loan?
What is Arizona Federals Federal Lender ID#, Address and Telephone Number for student loans?
What is the deadline to apply?
Who guarantees student loans for Arizona Federal?
What is the grace period and how long is it?
How long is the repayment period?
What are the student loan interest rates and how are they set?
What are the different types of student loans?
What are the Federal Stafford Loan Limits?
Who if i can't make my student loan payments?

How do I apply for a student loan?

The first step to apply for a student loan is to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA can be completed on-line at www.fafsa.ed.gov. If you are age 24 or under, you may need your parents’ financial information/or tax returns. You are able to select up to 6 schools to receive the results of the FAFSA. Each school will determine your eligibility for financial aid including any student loans. The school will notify you of your eligibility via an Award Letter/Notification. You will be directed to select a lender for the student loan depending on the school’s financial aid process.
 

What is Arizona Federal's Federal Lender ID#, Address and Telephone Number for student loans?

Lender Code/Lender ID# is 830168.
Mailing address is:

Arizona Federal
333 N. 44th Street
Phoenix, AZ 85008-6568

Phone Number: (602) 683-1219, toll free (800) 523-4603x1219
Fax: (602) 683-1919
Email: studentloans@azfcu.org

What is the deadline to apply?

Arizona Federal Credit Union encourages all students to apply for financial aid early as most schools have established processing deadlines. Arizona Federal will accept applications as long as the school will certify the loan.  

Who guarantees student loans for Arizona Federal?

USA Funds
 

What is the grace period and how long is it?

The grace period is the length of time between the date the student leaves school, graduates or drops to less than half time enrollment status and the repayment begin date of the student loan obligation.

For Federal Stafford (subsidized and unsubsidized) and Grad PLUS Student Loans, the grace period is six months beginning with the last date of attendance (on at least a half-time basis) or graduation date.

For Parent PLUS loans, there is no grace period. Repayment begins within 45 to 60 days after final disbursement. However, as of 7/1/2008, parents do have the option to defer payments until the dependent student leaves school/graduates and uses his/her six month grace.

There is no grace period for Consolidation loans.  

How long is the repayment period?

For Federal Stafford (subsidized, unsubsidized), Grad PLUS and Parent PLUS loans, the standard repayment period is 120 months (10 years) or minimum $50 payment per month.

For Consolidation loans, the repayment period can extend up to 360 months (30 years) depending on the loan balance.

In addition to the 120 month term, there are repayment plans available such as:

        Graduated Repayment
        Income Sensitive Repayment
        Income Based Repayment
        Extended Repayment

What are the student loan interest rates and how are they set?

The interest rates as of 07/01/2009 for new loans are:

        5.6% fixed – Federal Stafford subsidized, undergraduate loans
        6.8% fixed - All other Federal Stafford loans
        8.5% fixed – Federal Parent PLUS loans
        8.5% fixed – Federal Grad PLUS loans

The new, fixed interest rate for a Federal Consolidation loan is determined by calculating the average weighted interest rate of all loans included in the Consolidation loan and rounding up to the nearest 1/8th of 1%.

What are the different types of student loans?

There are two types of Federal Stafford Loans -

Federal Subsidized
Available to undergraduate, graduate, dependent and independent students. The U.S. Department of Education pays the interest which accrues during the in school period, grace period and periods of authorized deferment. The borrower is responsible for the interest which accrues during the repayment period and any forbearance periods. Eligibility determined by the school and is based on financial need.. 

Federal Unsubsidized:
Available to undergraduate, graduate, dependent and independent students. The borrower is responsible for the interest which accrues during the in school period, grace period and periods of authorized deferment in addition to the interest which accrues during the repayment period and any forbearance period.

Repayment does not begin, for both loan types, until 6 months after the borrower leaves school, graduates or drops below half time enrollment status.  

Additional Types of Loans:

Federal Parent PLUS:
Available to a parent of a dependent, undergraduate student. There is a credit check requirement as the parent can borrow up to the cost of attendance. There is no grace period. Repayment begins within 45 to 60 days after final disbursement. However, as of 7/1/2008, parents do have the option to defer payments until the dependent student leaves school/graduates and uses the six months grace period.

Federal Grad PLUS:
A graduate student may borrow up to the cost of attendance on his/her own behalf in addition to Stafford eligibility. There is a credit check requirement as the student may borrow up to the cost of attendance. Repayment begins after the six month grace period.

Federal Consolidation:
Available to borrowers whose federal loan or loans are in grace, repayment or deferment periods. You can save money, time and effort when one or more federal student loans are combined into one single Federal Consolidation loan. The repayment period can be up to 360 months (30 years) depending on the amount of student loan debt.

What are the Federal Stafford Loan Limits?

Federal Stafford Loan Annual Limits

	Dependent Undergraduates (except students whose parents are unable to borrow a PLUS loan)
	First Year Total (maximum $3,500 subsidized)	$5,500
	Second Year Total (maximum $4,500 subsidized)	$6,500
	Third Year and Beyond Total (each year) (maximum $5,500 subsidized)	$7,500

	Independent Undergraduates (and dependent undergraduates who parents are unable to borrow a PLUS loan)
	First Year Total (maximum $3,500 subsidized)	$9,500
	Second Year Total (maximum $4,500 subsidized)	$10,500
	Third Year and Beyond Total (each year) (maximum $5,500 subsidized)	$12,500

	Graduate and Professional Students
	Total Amount (each year) (maximum $8,500 subsidized)	$20,500

What if I can't make my student loan payments?

If you are having difficulty making your student loan payments, there are   several options you may want to consider:

• Deferment. You may qualify for a deferment if you are unemployed, returning to school, facing economic hardship or on active duty in the military. These deferments are available to those borrowers who meet the qualifications. There are no fees associated with requesting or processing a deferment.
• Forbearance. You may request a temporary postponement of payment or “forbearance” on your loan(s). There are no fees associated with requesting or processing a forbearance, however interest will continue to accrue on your loan and will be capitalized or added to the principal balance at the conclusion of the forbearance period. This will increase the cost of your loan.
• Loan Consolidation. A federal Consolidation loan allows you to combine multiple federal student loans into one new loan with one single monthly payment. Depending on the new loan balance, the repayment period may be extended the repayment period and lower the monthly payment. This will increase the cost your loan.
• Repayment Plan. You can choose to change your repayment plan to make it easier to successfully repay your student loans. Repayment plans are:

              LEVEL/STANDARD REPAYMENT PLAN.
              GRADUATED REPAYMENT PLAN.
              INCOME-SENSITIVE REPAYMENT PLAN.
              EXTENDED REPAYMENT PLAN.
              INCOME BASED REPAYMENT PLAN (IBR).
              Note: IBR is not available to Parent PLUS borrowers or borrowers whose                           Consolidation Loan is comprised entirely of Parent PLUS Loans.

›› Content updated September 18, 2009