Loans

Federal Direct Student Loans

This loan may be subsidized, unsubsidized, or a combination of both. With a subsidized loan, which is awarded based on financial need, the federal government pays interest that accrues while you are in school. The unsubsidized loan is not based on need; interest that accrues while in school must either be paid monthly or deferred and capitalized (added to the original loan balance). The Financial Aid Office strongly advises students to repay the unsubsidized loan interest while in school. Loan eligibility is determined by the Financial Aid Office, but loans are made by the U.S. Department of Education and funded by the U.S. Treasury.

The maximum annual subsidized loan limits are based upon your year of enrollment: 

Year
Annual Loan Limits
Dependent Student
(except students whose parents are unable to obtain PLUS Loans)
Independent Student
(and dependent undergraduate students whose parents are unable to obtain PLUS loan)
First Year Undergraduate
(1-29 Credits)

$5,500 - no more than $3,500 of this amount may be in subsidized loans

$9,500 - no more than $3,500 of this amount may be in subsidized loans
Second Year Undergraduate
(30-59 Credits)
$6,500 - no more than $4,500 of this amount may be in subsidized loans $10,500 - no more than $4,500 of this amount may be in subsidized loans
Third Year Undergraduate
(60-89 Credits)
$7,500 - no more than $5,500 of this amount may be in subsidized loans $12,500 - no more than $5,500 of this amount may be in subsidized loans
Fourth Year Undergraduate
(90-120 Credits)
$7,500 - no more than $5,500 of this amount may be in subsidized loans $12,500 - no more than $5,500 of this amount may be in subsidized loans

Subsidized and Unsubsidized Loans have a 4.53% fixed interest rate for Undergraduate students, and a 6.08% fixed interest rate for Graduate students. Loan fees are 1.059% for loans disbursed on or after Oct. 1 2019, and before Oct. 1 2020. Loan funds are disbursed directly to Fisher College in equal amounts over each term of enrollment for the academic year. There is a six-month grace period prior to repayment following graduation, withdrawal, or a drop below half-time status. See the repayment page for additional information on repayment options. To receive the Direct Loan, students need to complete a Master Promissory Note and Entrance Interview. The Master Promissory Note is a legal document where the borrower agrees to repay the loan while the Entrance Interview explains the borrower's rights and responsibilities with the loan. To complete these two documents, you will need the following items:

  • 30 minutes to complete each document, as they must each be completed in one sitting.
  • Federal Student Aid User ID and Password.
  • The school's name.
  • Your personal information, including your name, address, and telephone number.
  • Reference information for two people you have known for at least two years. The first reference should be a parent or a legal guardian. You'll need their name, address, and telephone number.

If you have all this information, please visit www.studentloans.gov and click on the green "Sign In" button on the top left and log in. From here, click on "Complete Entrance Counseling" and follow the directions to complete your Entrance Counseling. Also on this screen, click on "Complete Master Promissory Note" then "Subsidized/Unsubsidized" and follow the directions to complete your Master Promissory Note.

Federal Direct Plus

The Federal Direct PLUS Loan is for parents of eligible dependent undergraduate students. The borrower and the student must be U.S. citizens or permanent residents. It currently has a fixed rate of 7.08% for the life of the loan, and there is a 4.236%* origination fee.

Repayment begins 60 days after the loan is fully disbursed, and extends up to 10 years.
To apply for a Federal Direct Parent PLUS Loan online, the parent will need their FSA Username ID.
 
To begin:  

  • Visit www.studentloans.gov
  • Click on the green "Log In" button and enter your information (the parent).
  • On the "Welcome" screen, click "Request a Direct PLUS Loan."
  • Under "Select a Loan Type," click "Parent PLUS."
  • Select award year, deferment preference, and requested amount (please note: we recommend confirming your full year balance with our College Bursar prior to requesting an amount).


We require that a valid FAFSA (Free Application for Federal Student Aid) must be on file and verification is complete before we can process an approved loan. If a parent is denied a Federal PLUS loan on account of credit reasons, the parent may appeal the denial with the Direct Loan Origination Center or reapply with a credit-worthy endorser. The Direct Loan Origination Center may be reached at 800-557-7394. If no appeal is filed, the student will be eligible for an additional $4,000 of an Unsubsidized Direct Loan.

Parents can choose to defer payments on a PLUS loan until six months after the date the student ceases to be enrolled at least half time. The interest that accrues on the loan while it is in deferment can either be paid by the parent borrower monthly or quarterly, or can be capitalized quarterly. To request a deferment, call the Direct Loan Servicing Center at 800-848-0979. Deferments will not be approved until after the first loan disbursement has been made.

In order for first-time parent borrowers to receive PLUS Loan funds, the online PLUS Loan Master Promissory Note (MPN) must be completed. The PLUS Loan MPN can be completed at the www.studentloans.gov. Click on the green ‘Log In’ button and enter your FSA User ID (the parent). From here, click on “Complete Master Promissory Note" then “Parent PLUS" and follow the directions to complete your Master Promissory Note.

Loan Deferment

If you cannot afford to make the monthly payment on your Federal Loans, you may be eligible for a deferment. This option lets you postpone making monthly payments on the principal and sometimes the interest. You qualify for deferment if you are attending a post-secondary school at least half time, unable to find full-time employment (up to three years), studying in an approved graduate fellowship or rehabilitation training program for the disabled, or experiencing economic hardship (up to three years). Contact your lender for additional information on loan deferment.

Check Loan Status/Amounts

The National Student Loan Data System (NSLDS) is the U.S. Department of Education's (ED's) central database for student aid. NSLDS receives data from schools, guaranty agencies, the Direct Loan program, and other Department of ED programs. NSLDS Student Access provides a centralized, integrated view of Title IV loans and grants so that recipients of Title IV Aid can access and inquire about their Title IV loans and/or grant data. To check your loan status please visit https://nsldsfap.ed.gov/nslds_FAP/.

Alternative Financing

Many families supplement their college financing plan with private educational loans. Private loans are available from a variety of lending sources and provide additional funding when the other types of aid do not cover costs. These loans are not guaranteed by the federal government but by private financial institutions. Terms and conditions applicable to these loans vary greatly. Interest rates on these loans are typically higher than federal loans but lower than personal loans. For any private loan which requires the student to be the eligible primary applicant, the student borrower will need a credit-worthy co-signer for approval to borrow from these loan programs.

There are many opportunities available to finance your education. Your options may include a deferred payment plan, a long-term loan program or a combination of both to reduce immediate out-of-pocket expenses and help spread out college payments over a manageable period. The Office of Financial Aid will work with students and their families to assist them in selecting the option(s) that are best for their circumstances.

For online comparisons of our suggested alternative loan lenders, please visit: http://www.elmselect.com

2019-2020 Financing Your Education

While we offer some suggested lenders and loan products to you, it is important to note the College will work with and process loans for any lender of your choice. Parents and students have the right to select the lender of their choice without penalty by the College and are not required to use any lenders on the suggested lender list. When selecting the option best suited for your circumstances, you should compare interest rates, borrowing limits, credit requirements and repayment options. Please contact our office for more information.

How to Determine Your Loan Period
It is recommended that when you borrow an alternative loan that you borrow only once for the academic year. For example, if you are enrolling for the Fall and Spring semesters you should calculate your balance to cover the entire academic year. This will require only one loan application and review of your credit history. Loans are disbursed in two equal payments unless otherwise noted. The Loan Period for the Fall and Spring semesters is September 3, 2019 to May 8, 2020.
 

Alternative Loans will disburse after the add/drop period each semester.

Recommended Guidelines for Alternative Financing
  • Review your Award Letter if you applied for financial aid.
  • Determine your anticipated outstanding balance for the academic year (Fall/Spring).
  • Research Alternative Financing Options best suited to meet your financing goals.
  • Apply online or by telephone. Be sure to borrow once for the entire academic year (Fall/Spring) to avoid multiple loan applications and credit reviews.
  • Once you apply, you will be required to complete a Private Education Loan Applicant Self-Certification Form with your lender.
  • You will also be required to submit a Promissory Note to secure your loan. This MUST be completed with your lender in order for your loan to be deducted from your tuition bill.
  • Revised Award Letters will be mailed to students acknowledging an Alternative Loan has been processed.