Federal Stafford Loans
The AFI Conservatory participates in the Federal Stafford Loan programs. Both subsidized and unsubsidized loans are available in the Federal Stafford Loan programs. While the federal student loan programs are backed by the federal government and administered by the AFI Financial Aid Office, you will borrow your loan from a private lender (see Choosing A Lender below) who will send your funds to the Conservatory directly.

Student loans allow you to defer some of the costs of attendance until you have either completed or left the program. These loans must be repaid, including interest and all applicable fees.

Subsidized Federal Stafford Loans
Subsidized Federal Stafford Loans are awarded on the basis of financial need. The government pays the interest on this loan program while you are in school, while you are in your six-month grace period after leaving school and during any periods of deferment.

Unsubsidized Federal Stafford Loans
Unsubsidized Federal Stafford Loans are not awarded on the basis of financial need. The government does not pay the interest on this type of loan at any time. You will be responsible for interest on your loan at all times. You have the option of paying the interest while in school or having the interest accrue while you're in school to pay it later. If you choose to pay it later, it will be capitalized (usually once at the time of repayment) and your lender will add the accumulated interest to the principal balance of your loan. Additional interest will then be based upon the combination of your original principal balance and the accrued interest.

Federal Stafford Loan Amounts
The amount of Federal Stafford Loans that you may receive will depend on your prior educational experience. If you have a bachelor's degree, or if you have completed at least three years of undergraduate study, you will be eligible for graduate level loans at the Conservatory. The maximum annual Federal Stafford Loan graduate level limits for 2008-2009 are as follows:

For those admitted without at least three years of undergraduate study completed, annual loan limits will be less and will vary based upon the amount of undergraduate coursework completed.

Loan Fees
For loans first disbursed between July 1, 2008 and July 1, 2009, a Federal Stafford Loan is subject to a loan origination fee of 1.5% and a Federal default fee of 1%. The entire loan amount, including deducted fees, must be repaid by the borrower. Some lenders will waive their fees to provide student borrowers with additional funds. Please refer to our list of recommended lenders for more information on individual lender offers.

Interest Rates
As of July 1, 2006, the interest rate on the Federal Stafford Loan is 6.8% fixed for the life of the loan. (Any Federal Stafford Loan borrowed before July 1, 2006 will have a variable interest rate that will change every July 1.)

Choosing a Lender
Most banks and lending institutions participate in the federal loan programs. If you have current unpaid Federal Stafford Loans, we suggest that you borrow your Conservatory loans through the same lender.

If you have never before borrowed a Federal Stafford Loan, we suggest that you select from one of the Conservatory's recommended lenders listed below:

• Access Group www.accessgroup.org

• All Student Loan www.allstudentloan.org

• Edamerica www.edamerica.net

* Please Note: Borrowers have the right and ability to select the lender of their choice and are not required to use any of the above recommended lenders. If you choose to borrow through a different lender than one of the recommended lenders, please contact the Financial Aid Office.

Repaying Your Loan
After you graduate, or leave school for any other reason, you have a six-month "grace period" before you must begin repaying your loans. If your loan is subsidized, the government will continue to pay the interest on your subsidized loan during this time. After your six-month grace period, you begin repayment of principal and interest. You will be offered four options when you enter repayment:

• The standard repayment plan - allows you to pay off your loans in 10 years.
• The extended repayment plan - allows you to repay your loans over a maximum term of 25 years and reduces your monthly payment.
• The graduated repayment plan - allows you to make smaller payments at first and larger payments every few years.
• The income contingent repayment plan - allows you to make monthly payments based on a percentage of your yearly income.

Once you're in repayment, you have two options to suspend or to reduce your monthly payments.

Deferment:
If you qualify for one, a deferment is a right as a borrower. A deferment allows you to postpone your loan payments for a specific period of time. During a deferment, you will not be charged interest on a subsidized loan. However, interest will accrue during a deferment for unsubsidized loans. You must apply for a deferment and be approved for it before your payments will be postponed.

The following outlines your deferment options for loans disbursed after July 1, 1993:

Deferment Reason	Limited to:
Enrolled, at least half time, at a postsecondary school	Unlimited
Unable to find full-time employment	Six-month period with a maximum of six periods
Economic Hardship	Twelve-month period with a maximum of three periods

Forbearance
A forbearance is an option granted to you at the discretion of your student loan lender or holder. You may apply for a forbearance to temporarily postpone or reduce your monthly payments if you are experiencing temporary financial difficulties. The terms of a forbearance are on a case-by-case basis and are arranged specifically for you by your student loan lender or holder. A forbearance may result in an increased monthly payment upon resuming regular payments.

Tracking Your Loans
The Department of Education has created a central database for student aid called the National Student Loan Data System (NSLDS) (www.nslds.ed.gov). NSLDS takes information from schools, lenders and guarantee agencies on a regular basis to provide the most up-to-date information for you. Using your federal PIN, you are able to access your student aid records and track your federal loans after disbursement.

FSA Ombudsman
The Department of Education created a Federal Student Aid (FSA) (www.fsahelp.ed.gov) Ombudsman to assist federal loan borrowers resolve disputes regarding their loans. While the Ombudsman cannot reverse a decision made by another party, they will assist borrowers with a neutral third-party position that can recommend solutions. If they determine that you have been treated unfairly, they will work on your behalf to fix the problem with other agencies.