Loan Information

A part of your financial aid award may be a loan. A loan must be repaid. Therefore, when deciding whether to borrow, you should examine your need for assistance and your future ability to repay. Unlike consumer loans, student loans have longer terms of repayment and in most cases are not repayable until you leave school. Interest rates vary from program to program but are usually lower than on loans made to the general public. The precise terms of the loans are contained in the promissory notes that borrowers must sign.

Federal Direct Student Loans

There are two types of Federal Direct Student Loans.  Both loans require a student be enrolled at least half-time.  (For undergraduate students half-time status is equal to 6 credits per semester and for graduate students half-time status is equal to 3 credits per semester)  Direct Subsidized Student Loans are for students with financial need, as determined by federal regulations.  No interest is charged while you are in school at least half-time, during your grace period and during deferment periods.  Direct Unsubsidized Student Loans are not based on financial need; interest is charged during all periods.

Annual Federal Direct Student Loan Limits

Freshman  = $5,500 ($3,500 max in a subsidized loan)
Sophomore  = $6,500 ($4,500 max in a subsidized loan)
Junior        = $7,500 ($5,500 max in a subsidized loan)
Senior        = $7,500 ($5,500 max in a subsidized loan)
Graduate    = $20,500 ($8,500 max in a subsidized loan)

Loan Fees/Up-Front Interest Rebate

The Direct Loan Program does charge a loan fee.  Currently for all Direct Subsidized Loans and Direct Unsubsidized Loans first disbursed on or after July 1, 2011 and before July 1, 2012, the loan fee is 1%.  The loan fee is deducted from your loan funds prior to your funds being posted to your account.  The Direct Loan Program also offers an up-front interest rebate to borrowers as a repayment incentive.  For the 2011-2012 school year, the up-front interest rebate is 0.5% of the total amount borrowed.  This results in a net fee charge of 0.5%.

To keep the up-front interest rebate, a borrower must make their first twelve required monthly payments on time (within 6 days of the due date).  If a borrower does not make their first twelve required payments on time, the U.S. Department of Education will add the rebate amount back to the principal balance.

Interest Rates

Graduate
Both Subsidized and Unsubsidized Graduate Direct Student Loans processed after July 1, 2009 are at a fixed rate of 6.8%. 

Undergraduate: Direct Subsidized Student Loans are as follows:

Processed between July 1, 2010 - June 30, 2011 : 4.5%
Processed between July 1, 2011 – June 30,2012 : 3.4%

Interest Rate returns to 6.8% for subsequent years

Undergraduate Direct Unsubsidized Student Loans are at a fixed rate of 6.8%.

Entrance and Exit Counseling

To make certain that student loan borrowers are given the most up-to-date information on student loans, all borrowers are required to attend on line entrance and exit counseling sessions.

Entrance Counseling

First-time borrowers of federal direct loans (but NOT Direct PLUS Loans) are required to complete entrance counseling and the Master promissory Note (MPN) before the Student Accounts Office may credit their loan proceeds. The purpose of the entrance counseling is to ensure that you understand your rights and responsibilities as a new loan borrower and that you understand the regulations governing each loan program, such as interest rates, grace, deferment/forbearance options, prepayment, consolidation, and other general repayment obligations. You are also informed of the consequences of not repaying your student loans (default) and of various repayment strategies. You must also complete a Master Promissory Note (MPN)  when you complete your entrance counseling.
Students can complete entrance counseling and the MPN online at www.studentloans.gov.

Exit Counseling
All student loan borrowers are required to complete exit counseling before graduating or withdrawing from Stevenson University or ceasing to enroll at least half-time. The on line session covers all subjects that were covered in the entrance counseling, with an emphasis on repayment strategies.

If you borrowed under the Federal Direct Loan Program (either a subsidized Direct Loan or an unsubsidized Direct Loan, or both) please complete the Federal Student Loan Exit Counseling

For more complete information on the Direct Loan Program, visit the federal web site, www.direct.ed.gov.


Federal Direct PLUS Loans for Parents

Stevenson University participates in the Federal Direct PLUS Loan Program.  The U.S. Department of Education is the lender for the Direct PLUS Loan Program rather than a bank or other financial institution.  Direct PLUS Loans are for the biological or adoptive parent of dependent students. The stepparents of dependent students are also eligible if their financial information is included on the Free Application for Federal Student Aid (FAFSA).  The U.S. Department of Education requires that all students complete the FAFSA.

Eligibility Requirements

The student must be enrolled at least half-time status (6 credits or more per semester).

  • The borrower and the student must be a U.S. citizen or eligible noncitizen.
  • The borrower and the student must not be in default on a prior education loan.
  • The borrower must meet federally defined credit worthiness standards.
  • The student must be making satisfactory academic progress.

Credit Worthiness Standards

  • The borrower cannot be 90 days or more delinquent on the repayment of any debt.
  • The borrower cannot be the subject of a default determination, bankruptcy discharge, foreclosure, repossession, tax lien, wage garnishment or write-off of a Title IV debt during the last five years.
  • If the parent is denied the PLUS loan because of an adverse credit history, the parent may re-apply with a cosigner.
  • If the parent is denied the PLUS loan due to an adverse credit history and does not reapply with a cosigner, the student may borrow additional Direct Unsubsidized loan money.  Freshmen and sophomores are eligible to borrow an additional $4,000 and juniors and seniors are eligible to borrow an additional $5,000.

Annual Loan Limits
Cost of attendance less other aid.

Loan Fees/Up-Front Interest Rebate
The Direct PLUS Loan Program charges a loan fee of 4% of the total amount borrowed.  The 4% fee is deducted from your loan funds prior to the funds being posted to your student’s Stevenson University account.  The Direct PLUS Loan Program also offers an up-front interest rebate to borrowers as a repayment incentive.  For the 2011-2012 school year the up-front interest rebate is 1.5% of the total amount borrowed.  This results in a net fee charge of 2.5%.   
To keep the up-front interest rebate, a borrower must make their first twelve required monthly payments on time (within 6 days of the due date).  If a borrower does not make their first twelve required payments on time, the U.S. Department of Education will add the rebate amount back to the principal balance.

Interest Rate
The interest rate is fixed at 7.9%.  Interest starts to accrue the day the loan funds are disbursed.

Repayment Terms

  • Payment of principal and interest begins 60 days after the final disbursement.
  • For loans first disbursed after July 1, 2008, your parent borrower can apply for an in-school deferment as long as you are enrolled at least half-time (6 credits or more per semester).

Alternative/Private Education Loan

Alternative Student Loans, also commonly referred to as Private Education Loans, are commercial loans offered by banks, credit unions and other private lenders to cover the cost of college not covered by financial aid. 

Before applying for an Alternative Student Loan, the student and parent of a dependent student should compare the terms of the loan with loan assistance available through the Federal Direct Student Loan and Federal Direct Parent PLUS Loan Programs.  Most Alternative Student Loan Programs are not competitive with the Federal Loan Programs and are only intended to provide supplemental education financing after all federal options are exhausted. 

If you live in the following states, you should also review information about your state’s Private Education Loan Programs:  Alaska, Connecticut, Iowa, Maine, Massachusetts, Minnesota, Montana, New Jersey, New York, North Dakota, Rhode Island, South Dakota South Carolina, Texas, Vermont, Wisconsin and Wyoming.

Stevenson University does not provide a Preferred Alternative Student Loan Lender List, but we are able to provide you with a list of banks and credit unions that have made loans to our students in the past 4 years.  Please be advised that Stevenson University does not recommend, promote or endorse the loan products of the lenders on these lists.  You are free to borrow from any lender of your choice.

The banks that have made loans to our students in the past 4 years are as follows:

Chase Bank
Discover Student Loans 
PNC Bank 
Sallie Mae
Sun Trust Bank
Wells Fargo

The credit unions that have made loans to our students in the past 4 years are as follows:

NASA Federal Credit Union
(1-877-654-5258)
                           
Member 1st Credit Union
(1-877-654-5258)

Mid-Atlantic Federal Credit Union
(1-877-654-5258)

Digital Federal Credit Union
(1-877-654-5258)

Comstar Federal Credit Union
(1-877-654-5258)

Baxter Federal Credit Union
(1-877-654-5258)

Stevenson University provides Alternative Student Loan Counseling through the FASTChoice website.  The FASTChoice website is powered by Great Lakes Student Loan Services and will provide you with general information about loan types, loan terms and conditions and borrower responsibilities.

For the banks listed above, you will be able to use the FASTChoice comparison tool to view individual bank loan details, including eligibility requirements, interest rates, loan limits, and borrower benefits.  Since most credit unions have specific membership requirements, we have not included them in the FASTChoice comparison tool but we have provided a phone number for you to contact each credit union directly.

The Alternative Student Loan industry has experienced a number of regulatory changes that could add additional time to the approval process.  If you are planning to use an Alternative Student Loan to pay your charges, please allow sufficient processing time.  Most lenders will agree that using a credit worthy cosigner may speed up the application process, help lower the interest rate and increase the chance of approval.  

When the lender has determined whether the student meets the approval criteria, the lender will contact Stevenson for the school certification. After the certification has been provided, the lender will issue a disclosure statement detailing the loan agreement. If you request to borrow an amount that exceeds eligibility, Stevenson will reduce the requested amount to comply with federal guidelines.

The Higher Education Opportunity Act was signed into law on August 18, 2008.  The Act requires all colleges to adopt a College Loan Code of Conduct.  Stevenson University has adopted the College Loan Code of Conduct proposed by the Attorney General of the State of Maryland. 

     
   

The links below include short videos that provide information about loans that will be helpful to you: