|
Financial Aid
Options for the EMBA
http://gwired.gwu.edu/finaid
Here is a brief
explanation of the two most common loans that George Washington
University offers to EMBA students:
Federal
Stafford Loan
The
Federal Stafford Loan is a guaranteed student loan designed to assist
graduate students. Federal Stafford has a cap of $18,500 per academic
year. Therefore applicants can borrow no more than $37,000 from the
Federal Stafford Loan Program while in the EMBA program. Students
usually combine the Federal Stafford loan with the Private MBA loan,
requesting an additional $16,000 to $16,500 ($500 to cover origination
fees) per academic year. The repayment period of the loan is ten to
fifteen years. Repayment begins six months after graduation. Students
can pay interest while in school. Interest rates are granted based on
need. Origination fees vary from 2-4%.
There are two
types of Federal Stafford Loan available: subsidized and unsubsidized.
The Subsidized
Federal Stafford Loan is a low-interest, variable rate loan, granted
on a needs-basis. The federal government pays the interest to the
lender during the student's enrollment in the school. During the
six-month grace period immediately following separation from school,
the student is not required to make payments.
The Unsubsidized
Federal Stafford Loan is available to students who may not qualify for
a Subsidized Federal Stafford Loan or who qualify for only a partially
subsidized loan. In the latter case, the unsubsidized loan would make
up the difference between the subsidized portion of the loan and the
yearly cap. Unsubsidized means that the federal government does not
pay interest to the lender on the student’s behalf while the student
is enrolled in the program.
MBA Loan
These
loans can enable the applicant to borrow all or part of the cost of
their graduate business education. Repayment begins six months after
graduation. The six-month grace period before repayment and the
alternative payment plan, which allows students to pay interest only
during the first year of repayment, can help individuals maintain a
balance among their family commitments, professional responsibilities
and educational goals. The repayment term is 15 years, but it may be
extended depending on the student’s Business Education Loan balance.
Origination fee 3%.
The variable
interest rate is adjusted quarterly to equal the thirteen-week U.S.
Treasury Bill rate plus 0-2.0% depending on the borrower's credit.
Accrued interest is capitalized only once, at the beginning of the
repayment period. Please note that there is a 6.5% insurance fee,
which is deducted from the total amount borrowed.
For a graduate Federal
Stafford Loan application package, an MBA Loan application
brochure or to follow up on the status of a loan application, please
contact the George
Washington University financial aid office at 1-800-222-6242, option
4. Karime Shamloo at the Executive MBA office (202 994 3033) can
assist you in filling out these applications. Once the application is
completed, she can revise and submit the application to the GW loan
processing center located in Georgia.
FAFSA Online
You are
required to fill out the Free Application for Federal Student Aid (FAFSA)
online when you apply for the Federal Stafford Loan. FAFSA takes four
to six weeks to process and can be completed using the
electronic form on the Internet.
The other portion of the application takes approximately three weeks
to process. Therefore, if you are planning to apply for aid, you will
want to start the application process as soon as possible.
GW Loan
Questionnaire And Entrance Interview Online
If you are
applying for your first Stafford Loan through GW, you must complete an
Entrance interview
on-line.
A paper copy of the loan questionnaire is also included in the loan
application package.
The balance of the first semester's tuition is due by August 1
of your first semester. Please keep in mind that this due date also
applies if you are receiving financial sponsorship and/or
reimbursement from your employer. Failure to adhere to the due date
may result in interest and late fees.
The Corporate
Partnership Program
The Corporate Partnership Program
is not a loan program. It is an
education financing structure that enables companies to provide
financial support for their employees' education through use of the
Federal Stafford Loan and the Private MBA Loan serviced by SallieMae.
-
How it
works: The student/employee secures the loan, and the employer repays
the loan in full over three years-provided the employee completes the
degree and stays with the company during the three-year repayment
period.
-
If the
employee leaves the company, the loan is re-amortized to 10 years, and
the student is responsible for all the payments.
No matter
which loan you choose,
you do have the option to check with your company and find out if your
company wants to take advantage of the Corporate Partnership Program
offered by SallieMae.
|
