Loans

Student loans, unlike grants and scholarships, are borrowed money that eventually MUST be repaid, with interest.

Federal Direct Stafford Loan Program – Student is the Borrower- The Free Application for Federal Student Aid (FAFSA) serves as the primary application for this loan and must be completed each year if you wish to continue to obtain federal student loan funds. The web site is www.fafsa.ed.gov to apply.

There are 2 components to the Direct Loan Program which are Subsidized and Unsubsidized. The interest rate for Direct Subsidized and for Direct Unsubsidized Loan is 6.8%.

Direct Subsidized Loans are need based student loans that include full interest subsidy during the in school period. This means that the federal government will pay your interest while you are in school and your loan principal is deferred.

Direct Unsubsidized Loans are student loans that are not based on need. Therefore, quarterly interest payments are required or the interest will be capitalized upon repayment. This means that your unpaid interest is added to the principal.

Repayment of both Direct Subsidized and Unsubsidized loans begins six months after student ceases enrollment or enrolls in fewer than 6 credits. Repayment may extend for up to ten years.

The exact amount of loan eligibility is determined by the following formula: educational costs minus financial aid, minus expected family contribution as calculated by the U.S. Dept. of Ed.

Grade Level	Credit Requirement	Direct Subsidized Limit	Direct Unsubsidized Limit	Direct Extended Unsubsidized Limit (1)
First Year	0-29	$3500	$2000	$4000
Second Year	30-59	$4500	$2000	$4000
Third Year	60 +	$5500	$2000	$5000
Fourth Year	60+	$5500	$2000	$5000
Fifth Year	60+	$5500	$2000	$5000
Grad			$20,500

Annual amount may be limited based on the Cost of Attendance and other financial aid received.

(1) Direct Extended Unsubsidized is available only to independent students and dependent students whose parent(s) have been denied a Direct PLUS loan.

Detailed information for the Federal Direct Loan can be found at www.studentloans.gov or call 1-800-557-7394 for assistance.

New student borrowers must complete direct loan entrance counseling and electronically sign a master promissory note (MPN). The Loan Counseling Process is mandated by the federal government to ensure that students understand their rights/obligations as a borrower. The process must be completed on line at www.studentloans.gov. Your FAFSA pin is needed to sign the MPN.

Federal Direct Parent Plus Loan - Parent is the borrower.

This program allows creditworthy parents of full or half time dependent undergraduates to borrow up to the total University costs minus other financial aid. The interest on the Direct PLUS Loan is fixed at 7.9%. Repayment normally begins within sixty days after the second disbursement but can be deffered until after the student graduates. There is a ten year repayment period. If a parent is denied a Direct PLUS Loan, the student is eligible to borrow additional Direct Unsubsidized Loan funds. When determining the amount to borrow, consider the origination fee. The total origination fee is 4% which is deducted from the loan proceeds.

We recommend that the PLUS application be submitted no earlier than May 1st as the credit check expires after 90 days.

Parents can apply for the PLUS loan and submit the master promissory note at www.studentloans.gov (1-800-557-7394)

Alternative Loans – Student is the borrower with a credit worthy cosigner

Students and their families can borrow additional loan funds to help meet their college costs. These loan programs are provided by commercial lenders and are not supported by state or federal financial aid funds. Maximum loan amounts, borrower qualification, repayment schedules and interest rates vary. If you apply for an Alternative Loan you should request a loan for the total amount you need for both terms of the academic year on a single application. Students may borrow up to the cost of attendance minus all other financial aid.

All loans are transferred electonically in to the student account no earlier than 10 days prior to the start of each semester.

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Credit Card Payments - The University accepts: Visa, MasterCard and Discover Card. Payment can be made online at www.misericordia.edu/payonline or by phone at 570-674-6222.

LOANS

F ederal Direct Loans

Federal Direct Parent PLUS Loans

Federal Direct Graduate PLUS Loans

Alternative Loans

Tuition Payment Plan - The University participates in an outside payment plan through Sallie Mae. The TuitionPay plan allows you to pay all or part of your tuition bill in interest free monthly installments. There is an enrollment fee. Program details, including a budget calculator, payment worksheet and enrollment application can be found on line at www.tuitionpay.salliemae.com or by calling 1-800-556-6684.