There are several types of loans that will help finance your education, including low-interest federal government loans and loans from private foundations or banks.

 

Loans for Undergraduate Students

Direct Loan
Award: $3,500-$5,500
Source: Federal
Requirement: Students must demonstrate financial need to qualify for this loan to be subsidized.

Additional Unsubsidized Direct Loan
Award: $2,000-$7,000
Source: Federal
Requirement: Students do not need to demonstrate financial need to qualify for this loan.

Nursing Student Loan
Award: $3,300-$5,200
Source: Federal
Requirement: Students must be juniors or seniors in the nursing program and demonstrate financial need to qualify for this loan.

Parent PLUS Loan
Award: Varies
Source: Federal
Requirement: One does not need to demonstrate financial need to qualify for this loan, but a parent must complete an online application and promissory note.

Loans for Graduate Students

Unsubsidized Direct Loan
Award: $20,500
Source: Federal
Requirement: This is available to all students regardless of financial need; students are responsible for interest that accrues.

Grad PLUS Loan
Award: Varies
Source: Federal
Requirement: This is a loan for graduate students attending school at least half time. This loan is not subsidized, and you must repay the amount borrowed with interest.

Nursing Faculty Loan Program (NFLP)
Award: Varies
Source: Health Resources & Services Administration (HSRA)
Requirement: For eligible students in the Mount’s Master of Science in Nursing (MSN) or Doctor of Nursing Practice (DNP) programs who are committed to being nurse educators toward the cost of tuition, fees and other reasonable education costs for eligible students.  Up to 85% of the loan can be forgiven for those who complete their degree program and teach at an accredited school of nursing.

Tuition Deferment Program
A program for those eligible to receive employer tuition reimbursement. Students must pay one-third of the tuition and fees plus a $15 administrative fee by the course confirmation date; the remainder of tuition is due 45 days after the last day of the semester.

 

Nurse Faculty Loan Program (NFLP)
The Nurse Faculty Loan Program (NFLP) is intended to increase the number of qualified nursing faculty by providing loans to part-time and full-time students enrolled in the Educator Track of the Master of Science in Nursing Program or in the Doctor of Nursing Practice Program. After graduation, 85 percent of the total NFLP loan is forgiven over a consecutive four-year period while loan recipients serve as full-time nursing faculty or part-time faculty in combination with another part-time faculty position or part-time clinical educator/preceptor position at a school of nursing (i.e., baccalaureate or higher degree, associate degree, or diploma schools of nursing).

 

Stafford Loan Forgiveness Program for Teachers
Individuals who intend to teach in schools or educational service agencies for five consecutive academic years serving students from lower socioeconomic backgrounds and who meet other requirements may receive up to $17,500 in loan forgiveness.

 

Public Service Loan Forgiveness (PSLF) Program
To encourage full-time employment with public service employers, individuals may receive forgiveness, under specific repayment plans, on the remaining balance of eligible federal student loans after 120 payments are made.

 

Federal Direct Loan

Direct Loans are low-interest loans for students and parents to help pay the cost of a student’s education after high school. The lender is the U.S. Department of Education, rather than a bank or other financial institution. Most students who file a FAFSA will be offered a Federal Direct Loan. Repayment begins six months after the student graduates, attends less than half time, or stops attending college.

Who qualifies for a Direct Loan?

Most students who file the Free Application for Federal Student Aid will be awarded a student federal direct loan. A federal direct PLUS loan is also available to parents of dependent students.

A federal direct graduate PLUS loan is available to graduate and professional students to assist with college expenses

 

Parent Federal Direct Loan (PLUS Loan)

A loan available to parents of dependent students to help cover the cost of education. This fixed-interest loan is based on credit approval. Repayment starts immediately after the final disbursement. Parents have the option to defer the loan up to six months after the student graduates, attends less than half time, or stops attending college. To apply for this loan, a parent will need to log in to www.studentaid.gov and click on “Apply for a Parent PLUS Loan”.

Note: The U.S. Department of Education is the lender for both the student and parent direct loans.

 

Application requirements for Direct Loans

Federal regulations require that all first-time borrowers complete a direct loan entry counseling and a direct loan master promissory note online at studentaid.gov before receiving funds. Current students who have previously borrowed through the Federal Family Education Loan Program will only have to complete a master promissory note.  In addition, upon graduation or dropping below half time status (6 hours), borrowers are to complete a direct loan exit counseling online at studentaid.gov to review the terms and total indebtedness of their loans before repayment is scheduled to begin.  In addition, the National Student Loan Data System (NSLDS) can provide students with a Financial Review of Federal funds awarded and disbursed throughout their college career.  The information from NSLDS can be viewed online.   

 

Private (Alternative) Student Loans

Students have the option to borrow private loans directly from lenders (banks) to help finance the cost of their education. There are many options available so it is important to do some preliminary research and to know that all loans are not equal. Pay special attention to interest rates, fees, credit scoring, and co-signing requirements. But first, before you look at private loans, make sure that you have exhausted all possibilities for federal and state financial aid programs. Exploring your options now may save you time and money in the future.

Student Administrative Services will work with any lender and servicing agency to process a private/alternative education loan for our students. Please be advised that these loans may be more expensive than federal student loans. The terms and conditions of alternative loans vary from lender to lender and we encourage all borrowers to review and evaluate each program.

 

A co-signer with a strong credit history will increase a student’s chances of being approved for a private/alternative loan and will help you secure the best interest rate. If you are an undergraduate who is planning to ask a parent to serve as a co-signer, you should also consider the parent loan options to ensure that, as a family, you are getting the best rates available to you.

To insure timely processing of your loan, please monitor your application once submitted. Each lender’s process may vary, but each step must be completed before a disbursement is made to the University.

FastChoice  provides detailed information for various lenders, allowing you to accurately compare rates and terms side-by-side among their lenders and with other lenders you may be considering. The list that FastChoice provides is created from lenders MSJ students have borrowed from in the past. It does not include all lenders making private loans. We strongly suggest looking at all of your options before making a final decision. Be sure to check the bank, savings and loan, or credit union where you or your parents have accounts.

Mount St. Joseph University does not recommend, promote, or endorse any lender. We will help you process a loan from any lender that you choose.