Student Loan Options
|2014-2015 Loan Rates|
|Federal Perkins Loans||Fixed 5%|
|Federal Direct Subsidized Loan||Fixed 4.66%|
|Federal Direct Unsubsidized Loan||Fixed 4.66%|
Federal Perkins Loan
The Federal Perkins Loan is a campus-based loan program administered through the Office of Scholarships and Financial Aid at Monmouth College and serviced by UAS (University Accounting Service, LLC). Eligibility for the Perkins Loan is determined based on the results of the Free Application for Federal Student Aid (FAFSA) and the student’s calculated financial need. If a student is eligible for the Federal Perkins Loan, it will be included and offered as part of his or her overall financial aid award package.
No interest accrues on the loan during the years the student is enrolled in college. Payments are deferred as long as a student remains consistently enrolled at least half-time (6 credit hours). Students can take up to 10 years to repay their Perkins loan back to Monmouth College.
Steps to Finalize your Federal Perkins Loan
- If you are awarded a Federal Perkins Loan on your Monmouth College Financial Assistance Award Letter and wish to accept the loan, indicate “yes” or “accept” next to the award.
- After July 15, you will be contacted through your MC email account and provided instructions on completing a Master Promissory Note (MPN) for the Federal Perkins Loan. The Perkins Loan MPN and entrance loan counseling will be completed online at www.signmyloan.com with the use of your federally issued pin#. (The same pin# you used to sign your FAFSA.) Wait for the email and then follow the instructions included in the email.
Federal Direct Loan
Students who file the Free Application for Federal Student Aid (FAFSA) are eligible to borrow through the Direct Loan program. Depending on your financial need and the total amount of your other assistance, we will determine if you qualify for a Subsidized or Unsubsidized loan.
For a Direct Subsidized Loan, the federal government pays (or subsidizes) the interest that accrues during the time the student is consistently enrolled. The student will begin to incur interest after they are no longer enrolled. For a Direct Unsubsidized Loan, the federal government does NOT pay or subsidize the interest expense. Therefore, the interest that accrues on the loan during the enrollment period is the student’s responsibility.
There are maximum borrowing limits for students that are determined based on the student’s earned credits and class standing. These are outlined below.
|$3,500||$2,000||$5,500||Freshman||Up to $4,000|
|$4,500||$2,000||$6,500||Sophomore||Up to $4,000|
|$5,500||$2,000||$7,500||Junior||Up to $5,000|
|$5,500||$2,000||$7,500||Senior||Up to $5,000|
*Additional eligibility for Direct Loans exists for Independent Students or for Dependent students whose parent has been denied a Federal Parent (PLUS) Loan. For more information, please contact the Office of Scholarships and Financial Aid at (309) 457-2129 or firstname.lastname@example.org
Steps to Finalize your Federal Direct Student Loan
- For new students, if you wish to accept the loan, indicate "yes" next to the award on your FA Assistance Letter.
- Complete a Direct Loan Master Promissory Note at http://www.studentloans.gov. You will click theSIGN IN button and login using your social security and your 4 digit PIN number you used to sign your FAFSA application. You will choose “Complete Master Promissory Note” then “Subsidized/Unsubsidized”. Continue entering your information until the Promissory Note is signed and you receive an on-screen confirmation of completion. If you do not have your pin number, request a duplicate pin at http://www.pin.ed.gov.
- Complete Entrance Counseling at http://www.studentloans.gov. You will sign in (or continue on from signing your Master Promissory Note) and click on “Complete Entrance Counseling”. Continue reading the content and answering the questions until you see “Congratulations, you are finished”.
Electronic-Signing the MPN and completing entrance loan counseling are federal requirements for all student loan borrowers and must be completed prior to the loan being disbursed. Once you have finished the steps above, Monmouth College’s Office of Scholarships and Financial Aid will be notified within 48 hours and will proceed with processing your loan electronically with the Federal Government. All disclosures and legal documents for the loan will be provided directly from the Department of Education, Direct Loans.
These types of loans are not part of the Federal Loan programs, but are available to students who wish to borrow through a private source. We would strongly encourage all students to take advantage of the Federal Loan programs prior to pursuing a private/alternative loan. The interest rates, terms and fees vary greatly among the private loans and often are determined by your credit rating and whether or not you have a co-signer.
Below is a list of lenders that we have the most experience with when processing the private alternative loans. We have provided names of a variety of lenders from a variety of locations in an attempt to provide our students from across the country with a list of names that may sound familiar to you or that you may already do business with. There is no benefit to the college or to college staff members if you select one of these lenders over another of your own choosing. Your reasons for selecting a particular lender should benefit you, the borrower. We encourage you to do your homework and consider a number of lenders before deciding on one.
- Discover Student Loans
- iHELP Student Loan Finance Corporation
- Sallie Mae - Smart Option Loan
- Wells Fargo - Collegiate Loan