If you accepted Federal Loans as part of your financial aid package, you may need to complete a Master Promissory Note (MPN) for each type of loan. Instructions are different for new students than for returning students for Perkins Loan and Nursing Loan, so read them carefully and ONLY apply for loans you have accepted. If your costs are not completely covered, you may want to consider a Federal Direct Parent PLUS Loan (a loan for parents of dependent students) or a Private Alternative Loan.
There are two types of Federal Direct Stafford Loans:
Beginning July 1, 2016, the interest rate is 3.76% for subsidized and unsubsidized loans for undergraduate students. Loans with a first disbursement on or after Oct. 1, 2016 and before Oct. 1, 2017 will have a loan origination fee of 1.069%. You will pay back 100% of what you borrow (plus interest); however, only 98.93% of the gross loan will be disbursed to the account.
Borrowers may not receive Direct Subsidized Loans for more than 150% (pdf) of the published length of their program (measured in academic years).
Students must be enrolled in at least 6 credit hours and complete all loan requirements within the enrollment period to receive federal loan funds. Students must complete a Federal Direct Stafford Loan Entrance Counseling and Master Promissory Note.
To complete the Federal Direct Stafford Loan Entrance Counseling and Loan Agreement:
This loan has a fixed interest rate of 5%. Repayment begins nine months after the student leaves school. The repayment period may vary up to ten years depending on the amount borrowed.
Students who are offered a Federal Nursing Student Loan will be notified by email with instructions on the procedures to accept the Federal Nursing Loan.
Parent Loans for Undergraduate Students (PLUS) are through the Federal Direct Lending Program, whereby federal funds are borrowed directly from the Department of Education. Funds are available to parents for their dependent, undergraduate students who are matriculated in a degree program and enrolled in at least six (6) credits. Parents of dependent students may borrow up to the cost of attendance minus any other aid through this credit-based loan program each academic year. Only one parent of a student can borrow through this loan program (per application).
Beginning July 1, 2017, the interest rate is 7.00%. Loans with a first disbursement on or after Oct. 1, 2017 and before Oct. 1, 2018 will have a loan origination fee of 4.264%. Parents will pay back 100% of what they borrow (plus interest); however, only 95.736% of the gross loan will be disbursed to the student's account.
Important: All parents must now borrow Parent PLUS loans under the William D. Ford Direct Loan Program. Dependent students must file the Free Application for Federal Student Aid (FAFSA) in order for the parent to be eligible to borrow this loan.
Please follow the steps below in order to complete the Federal Direct Parent PLUS Loan process:
For 2018-2019, parents should not apply prior to May 1, 2018.
|Federal Loans||Private Loans|
|Credit Check Requirement||Stafford-No
PLUS-Yes (however, debt to income ratio not included)
|Deferment||Yes||Depends on loan, but generally yes|
|Grace Period||Stafford- 6 months
PLUS- 6 months
|Depends on loan, but generally 6 months|
|Interest Rate||Direct Subsidized Loan- 4.45%
Direct Unsubsidized Loan- 4.45%
Direct PLUS Loan- 7.00%
|Fixed and Variable|
|Fees||Stafford- 1.069% (for period 10/1/16 - 9/30/17)
PLUS- 4.276% (for period 10/1/16 - 9/30/17)
|Depends on Loan, but generally no fee|
|Loan Forgiveness/Discharge||Yes||Depends on Loan/Lender|
|Penalty for Early Repayment||No||
Depends on loan, but generally no penalty
Step 1: Select your lender from the Preferred Private Lender List using FastChoice.
Step 2: Complete the Alternative Loan application process required by the lender chosen in Step 1.
Step 3: Have cosigners complete their section of the application process.
Step 4: If you are applying for the Alternative (Private) Loan for required Tools or Equipment, you will need to complete an Alternative Loan Worksheet for Tools and Equipment and submit to the Student Records and Financial Services Office.
Step 5: After the loan is approved by the lender, the Student Records and Financial Services office will receive a request for certification. Loan certification can take up to 30 days once all documentation has been received by the school. Loans for payment of your semester bill will be certified for the full academic year (to be split evenly among Fall and Spring semester) unless otherwise noted from the lender.
Step 6: Disbursed loan funds are sent to the Student Records and Financial Services Office. If you requested early disbursement for tool or equipment purchases, you will be issued a refund check in the amount of your loan. If the loan is to be used towards the payment of your tuition, the disbursed loan will be applied directly to your semester bill.
*Note: Private Loans will not disburse to a student's account until 10 days prior to the start of classes each semester, unless early disbursement for tools, equipment, etc. has been requested. For loans processed during the academic year, please allow at least 10 business days for disbursement (provided all steps have been completed).