[ Financial Aid ]

Loans

Borrow Money for School

To Apply for a Loan
Federal Direct Loans
Perkins Loans
PLUS Loans
Alternative Loans
Student Responsibilities for Loans

Elmhurst awards student loans from funds provided through federal programs. To ensure that students consider all resources, the College offers loans only after determining a student's eligibility for grants and scholarships.

Unlike grants and scholarships, student loans must be repaid. Most require repayment to begin six to nine months after a student leaves college or drops below half-time enrollment.

To Apply for a Loan
Complete the Free Application for Federal Student Aid (FAFSA).

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Federal Direct Loans
These are of two types — subsidized and unsubsidized. These loans are also known as Stafford Loans. Elmhurst College is a Direct Lending school. Students obtain Stafford Loans directly through Elmhurst College without going to a bank.

• Subsidized loans are based on need. Interest and principal payments are deferred until 6 months after the student graduates or drops below half-time enrollment.
• Unsubsidized loans are not based on need. Principal payments are deferred until 6 months after the student graduates or drops below half-time enrollment, but interest accrues while the borrower is in college.
• The interest rate for undergraduate subsidized loans disbursed between July 1, 2009 and June 30, 2010 is 5.6% fixed. Subsidized loans disbursed between July 1, 2008 and June 30, 2009 have a fixed interest of 6.0%. Unsubsidized loans have a fixed interest rate of 6.8%. All loans disbursed between  July 1, 2006 and June 30, 2008 have a fixed interest rate of 6.8% . The interest rate for loans disbursed before July 1, 2006 is variable and may change every July 1. 
• Stafford Loan (subsidized and unsubsidized) eligibility is based on the number of credits the student has earned in college: Freshmen (less than 8.00 credits)-$3500   Sophomores (8.00 – 15.99 credits)-$4500   Junior/Senior (16.00 credits and over)- $5500. These are the limits for each academic year. For loans disbursed after July 1, 2008, an additional $2000 in unsubsidized loans is available to most dependent undergraduate students.
• Additional unsubsidized loans are available for independent undergraduate students. For loans disbursed after July 1, 2008, the additional unsubsidized amounts available for independent undergraduate students are as follows: $6000 for freshmen or sophomores, $7000 for juniors or seniors.
• The Direct Loan borrower must complete a Master Promissory Note at www.dlenote.ed.gov. Paper Master Promissory Notes are available from the Office of Financial Aid on request. Please note that the Direct Loan will not credit to the student's account until the paper Master Promissory Note is received and accepted by the U.S. Department of Education's Common Origination and Disbursement Center. Direct Loan Master Promisorry Notes are valid for ten years at any Direct Loan school.
• New student borrowers must also complete Entrance Couseling at www.dl.ed.gov The loan will not credit to the student's account until both a Master Promissory Note and Entrance Counseling are completed.
• If the student needs additional loans, the parents of a dependent student can borrow a PLUS loan or the student can borrow an alternative educational loan through a bank. Please see "Alternative Loans" below.
• As of July 1, 2008, an origination fee of 0.5% (2.0%-1.5% on time payment rebate) is charged by the U.S. Department of Education on all subsidized and unsubsidized loans. The actual amount of a subsidized or unsubsidized loan credited to a student's account is reduced by the amount of the origination fee.
• For more information about Direct Loans go to www.dl.ed.gov

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Perkins Loans

Elmhurst awards Federal Perkins Loans from available government funds. Due to the scarcity of Perkins funds, awards are made only to students with the greatest need.

Perkins Loans carry a 5 percent interest rate.

Normally, repayment does not begin until nine months after graduation or when a student drops below half-time enrollment.

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PLUS Loans
 

• Parents of dependent students may borrow up to the cost of education minus any aid the student is eligible to receive.
• To be considered, submit a completed PLUS Loan Application to the Office of Financial Aid.  New students who are dependents will recived a PLUS loan application with their award notice. Continuing students may download a parent PLUS application here.
• A credit check will be run on the PLUS applicant. If the credit check is approved, the loan will be originated. If the credit check is not approved, the student will be offered an additional $4000 unsubsidized loan.
• The parent PLUS borrower must complete a Master Promisory Note at www.dlenote.ed.gov Paper Master Promissory Notes are available from the Office of Financial Aid on request. Please note that the PLUS loan will not credit to the student's account until the paper Master Promissory Note is received and accepted by the U.S. Department of Education's Common Origination and Disbursement Center.
• For PLUS loans disbursed prior to July 1, 2008, repayment is not deferred. Repayment begins 60 days after the disbursement of the full amount that has been borrowed for the academic year.
• For PLUS loans first disbursed on or after July 1, 2008, parent PLUS borrowers have the option of beginning repayment either 60 days after the loan is fully disbursed or not until six months after the dependent student on whose behalf the parent borrowed ceases to be enrolled at least half time. PLUS loan borrowers interested in repayment deferment should call Direct Loan Borrower Services at 1-800-848-0979.
• The current annual interest rate on PLUS Loans is 7.9 percent (fixed rate). This rate is for loans disbursed after July 1, 2006. PLUS loans disbursed before July 1, 2006 are variable with an interest rate change every July 1.
• An origination fee of 2.5% ( 4.0%-1.5% on time payment rebate) is charged by the U.S. Deparment of Education on all Direct PLUS loans. The actual amount of the PLUS loan credited to the student's account is reduced by the origination fee amount.
• For more information about Direct PLUS loans go to www.dl.ed.gov

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Alternative Loans 
Alternative, or private, loans are offered by private lenders to assist with educational and living expenses not covered by other financial aid. It is important that you carefully review your expenses before deciding if you need to borrow.  These loans are generally more expensive than the federal student loans and therefore should not be considered until after you have exhausted all federal loan options.  Most of these loans must be certified by the Financial Aid Office.  All of these loans must be considered part of your financial aid package.  Alternative loans are credit based, often require co-signers, and cannot be consolidated with your federal student loans. 

Elmhurst College has open relationships with many lenders and service agencies from all across the country.  Because we want to emphasize how important it is for you to choose your own lender, we do not state any preference of any lender over another and hence do not have a "preferred lender list".  Research and shopping around for the best loan is a good idea.  Taking advantage of established relationships with lending institutions and the internet are two good places to start. A loan comparison tool is available through SimpleTuition.

Remember- the choice is yours to borrow wisely!  We will honor your request for whatever reason you choose to make it.  Keep in mind-these are loans-they must be repaid.    

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Student Responsibilities for Loans

An award notice from Elmhurst describes how much the student is eligible to borrow. The student may borrow a lesser amount by crossing out the amount(s) listed and writing in the amount that the student wants to borrow per term. Mark and return the award letter to the Office of Financial Aid indicating acceptance of the loan(s).

For first time borrowers of  Subsidized, Unsubsidized or PLUS loans, a Master Promissory Note  must be completed online at www.dlenote.ed.gov   By completing the Master Promissory Note, the student agrees to the terms of the loan. Paper Master Promissory Notes are available upon request.  If a paper Master Promissory Note is used, a loan cannot be credited to the student's account until the paper Master Promissory Note has been completed, returned to Elmhurst College and  received and accepted by the U.S. Department of Education. It is highly recommended that Master Promissory Notes be completed online. Online Master Promissory Notes are normally received and accepted by the U.S. Department of Education the same day as they are completed online.

All new student borrowers must complete entrance counseling covering the student's rights and responsibilities under the loan's provisions. This can be completed online at www.dl.ed.gov

Any time the student makes a change (in enrollment dates, credit hours, residency status, etc.) that causes the tuition, room, or board to change, a loan may be refigured and reprocessed.

When the student graduates or leave the College, the student must complete exit counseling  to review the provisions of the student's loans. This may be done online at www.dl.ed.gov  

For the direct loan calculator page, click here.

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