Federal and Private Loans

Federal Direct & Private Loans

The U.S. Department of Education’s federal student loan program is the William D. Ford Federal Direct Loan (Direct Loan). Under this program, the U.S. Department of Education is your lender. There are four types of Direct Loans available:

Direct Subsidized Loans are loans made to eligible undergraduate students who demonstrate financial need to help cover higher education costs at a college or career school.
Direct Unsubsidized Loans are loans made to eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need.
Direct PLUS Loans are loans made to graduate or professional students and parents of dependent undergraduate students to help pay for education expenses not covered by other financial aid. Eligibility is not based on financial need, but a credit check is required. Borrowers who have an adverse credit history must meet additional requirements to qualify.
Direct Consolidation Loans allow you to combine all your eligible federal student loans into a single loan with a single loan servicer.

Aggregate loan limits

Dependent Student Independent Student

Freshman (0-29) credits Undergraduate Annual Loan Limit	$5,500—No more than $3,500 of this amount may be in subsidized loans.	$9,500—No more than $3,500 of this amount may be in subsidized loans.
Sophomore (30-59) Undergraduate Annual Loan Limit	$6,500—No more than $4,500 of this amount may be in subsidized loans.	$10,500—No more than $4,500 of this amount may be in subsidized loans.
Junior and Beyond (60+) Undergraduate Annual Loan Limit	$7,500—No more than $5,500 of this amount may be in subsidized loans.	$12,500—No more than $5,500 of this amount may be in subsidized loans.
Graduate or Professional Students Annual Loan Limit	Not Applicable (all graduate and professional students are considered independent)	$20,500 (unsubsidized only)
Subsidized and Unsubsidized Aggregate Loan Limit	$31,000—No more than $23,000 of this amount may be in subsidized loans.	$57,500 for undergraduates—No more than $23,000 of this amount may be in subsidized loans. $138,500 for graduate or professional students—No more than $65,500 of this amount may be in subsidized loans. The graduate aggregate limit includes all federal loans received for undergraduate study.

*Notes: – The aggregate loan limits include any Subsidized Federal Stafford Loans or Unsubsidized Federal Stafford Loans you may have previously received under the Federal Family Education Loan (FFEL) Program. As a result of legislation that took effect July 1, 2010, no further loans are being made under the FFEL Program.

-Effective for periods of enrollment beginning on or after July 1, 2012, graduate and professional students are no longer eligible to receive Direct Subsidized Loans. The $65,500 subsidized aggregate loan limit for graduate or professional students includes subsidized loans that a graduate or professional student may have received for periods of enrollment that began before July 1, 2012, or for prior undergraduate study.

Would you like to know who your lender is? You can find out by visiting here.

What’s the difference between Direct Subsidized Loans and Direct Unsubsidized Loans?

In short, Direct Subsidized Loans have slightly better terms to help students with financial need.

Here’s a quick overview of Direct Subsidized Loans:

Direct Subsidized Loans are available to undergraduate students with financial need.
Your school determines the amount you can borrow, which may not exceed your financial need.
The U.S. Department of Education pays the interest on a Direct Subsidized Loan
- while you’re in school at least half-time,
- for the first six months after you leave school (referred to as a grace period), and
- during a period of deferment (a postponement of loan payments).

*Note: If you received a Direct Subsidized Loan that was first disbursed between July 1, 2012, and July 1, 2014, you will be responsible for paying any interest that accrues during your grace period. If you choose not to pay the interest that accrues during your grace period, the interest will be added to your principal balance.

Here’s a quick overview of Direct Unsubsidized Loans:

Direct Unsubsidized Loans are available to undergraduate and graduate students; there is no requirement to demonstrate financial need.
Your school determines the amount you can borrow based on your cost of attendance and other financial aid you receive.
You are responsible for paying the interest on a Direct Unsubsidized Loan during all periods.
Suppose you choose not to pay the interest while in school and during grace periods and deferment or forbearance periods. In that case, your interest will accrue (accumulate) and be capitalized (that is, your interest will be added to the principal amount of your loan).

Parent Plus Loan

The U.S. Department of Education is your lender.
You must not have an adverse credit history.
The maximum loan amount is the cost of attendance (determined by the school) minus any other financial aid received.
You can apply for a PLUS loan if you or your child have already filled out the Free Application for Federal Student Aid (FAFSA®).
If a parent borrower has been approved for a Direct Parent PLUS or Direct Graduate PLUS loan, the borrower has to complete the Direct PLUS Loan Master Promissory Note requirement here.
Suppose a Dependent undergraduate (under the age of 24 and unmarried) student’s parent gets denied a Parent PLUS Loan. In that case, the student may have their unsubsidized loan increased by $2,000 per semester fall/spring. Freshman and sophomore students may borrow a maximum of $6,000 in unsubsidized loan funds in addition to their base amount listed above.

Entrance and Exit Loan Counseling

Entrance Counseling:

Suppose you have not previously received a Direct or Federal Family Education Loan (FFEL). In that case, the Federal Government requires you to complete entrance counseling to ensure you understand your responsibilities and obligations.
If you are completing entrance counseling to borrow a loan as an undergraduate student, then the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans and Direct Unsubsidized Loans.
Suppose you are completing entrance counseling to borrow a loan as a graduate or professional student. In that case, the entrance counseling will fulfill counseling requirements for Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans.
For more information, please visit: https://studentaid.gov/entrance-counseling/

Exit Counseling:

Exit counseling provides important information to prepare you to repay your federal student loan(s).
If you have received a subsidized, unsubsidized, or PLUS loan under the Direct Loan Program or the FFEL Program, you must complete exit counseling each time you:
Drop below half-time enrollment
Graduate
Leave school
For more information,n please visit: https://studentaid.gov/exit-counseling/

Master Promissory Note (MPN):

The Master Promissory Note (MPN) is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).
You may receive more than one loan under an MPN over 10 years to pay for your or your child’s educational costs as long as the school is authorized to use the MPN in this way and chooses to do so.
The school will tell you which loans, if any, you are eligible to receive.
For more information, please visit: https://studentaid.gov/mpn/

Private Student Loan

Check out a few private loans at Citizens Bank, Sallie Mae and CollegeAve.

Private student loans are to help with your student balance when federal aid and scholarships aren’t enough. No FAFSA is required, but a credit check will be run to determine eligibility.

For more information on Private Loans and more private loan options, please click here. You can also visit our Private Student Loans page here.

Federal Loan Origination Fee

To review the most up-to-date origination fees, visit www.studentaid.gov or click here.

*sources: Federal student aid. An office of the Department of Education. https://studentaid.gov/understand-aid/types

Withdrawal and Return of Title IV Funds Fact Sheet

Complete Withdrawals - Official

A student requesting to be withdrawn entirely from a semester must submit a Complete Semester Withdrawal Form. This form may be obtained from the Dean’s Office. The student must complete their portion of the Complete Semester Withdrawal Form for all types of withdrawals (including Medical Withdrawals) before being considered for a complete withdrawal.

A completed form will include the necessary information about each course the student attempted during the semester, the professor’s signature, and the date the student last attended, determined by the Registrar’s Office. If the professor is not available to sign the Complete Withdrawal Form, the dean of the college from which the student is seeking their degree may sign instead of the professor.

The student will submit the Complete Semester Withdrawal form to the Financial Aid Office, where a Financial Aid Director will review the student’s request. The Financial Aid Counselor will complete a calculation to determine the amount of Federal Title IV aid (Pell Grant, FSEOG and Student Loans) the student has earned, if any, and return the portion of unearned aid. This return of federal financial aid may, in most cases, cause the student to have an immediate balance due to the university. The student will be counseled on their financial responsibility (in person, if present, or mailed the appropriate information with contact information for the Office of Student Financial Services), and directed to complete the on-line exit counseling session for Federal Direct Loans (subsidized or unsubsidized).

Online Course Withdrawal

Mission University & Theological Seminary (Mission U) online students should use this form if they wish to withdraw from a course. One form is required for EACH course withdrawal. When a student decides to withdraw from a course, depending upon when the withdrawal occurs, a grade of “W” (Withdrawal), “WP” (Withdrawal Passing), or “WF” (Withdrawal Failing) will be recorded on their transcript.

The last day to withdraw from (drop) a course with some financial consideration is the end of the first week of a course (census date) as published on the academic calendar. See below for the online course withdrawal policy:

Student may drop a course any time before the course start date (no grade recorded, 100% refund)
Student may drop a course any time within week one (grade of “W” recorded; 80% refund)
Student may drop a course any time within week two (grade of “W” recorded, NO refund)
Student may drop a course any time within weeks three through five or six (grade of “WP” or “WF” recorded, NO refund)
Students should consult the Mission U Online Programs Academic Catalog pages 22-27 and pages 34-35 (https://drive.google.com/file/d/1BFgRvZYjq646wSa7NX78i2ave14hYLrM/view) for dates and procedures relevant to course drops, withdrawals, and all other deadlines.

Please note that additional financial obligations may apply to a course withdrawal, including a $50.00 course withdrawal fee, partial or full tuition liability for the course, and student account charges if financial aid funds are returned.

NOTE: Students should be aware that withdrawing from a course may affect their financial aid eligibility and/or program of study, and they should follow up with all relevant Mission U departments as appropriate.

Return of Title IV Funds

Title IV funds are awarded to a student under the assumption that the student will attend school for the entire period for which the assistance is awarded. When a student withdraws, the student may no longer be eligible for the full amount of Title IV funds the student was originally scheduled to receive.

If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, the amount of Title IV grant or loan assistance earned by the student must be determined. If the amount disbursed to the student is greater than the amount the student earned, unearned funds must be returned.

The student’s date of withdrawal will be determined by either the date the student submits the Official Withdrawal Form, the date in which the student notified a representative of Mission University of their intent to withdrawal, or in the case where no type of notification has been provided by the student, the date of withdrawal will be marked as the half–‐way point within the period of payment.

Up through the 60% point in each payment period or period of enrollment, a prorate schedule is used to determine the amount of Title IV funds the student has earned at the time of withdrawal. After the 60% point in the payment period or period of enrollment, a student has earned 100% of the Title IV funds he or she was scheduled to receive during the period.

The Financial Aid Director will calculate the amount of Title IV aid the student has earned by using the Return of Title IV Funds on the web on-line tool provided within the COD website. Completing each step in the process will produce a worksheet that depicts: the calculation for any return of aid required; any amount to be returned by the college including the order and amount(s) in which specific resources will be altered, and any grant overpayment amount to be returned by the student as determined on the worksheet.

Any aid that is the college’s responsibility to return must be returned no later than 30 days after the date of the college’s determination that the student withdrew and the student must be notified. A student, who owes overpayments as a result of withdrawals, must within 45 days following the notification take positive action to extend his or her eligibility for Title IV funds. Student may 1) repay the overpayment in full to the school, 2) sign a repayment agreement with the school, or 3) sign a repayment agreement with the Department of Education. The college will report overpayments to the Department if the student fails to take action within 45 days.

Example:

–Student withdraws on the 40th day of class.

–Formula: Enrolled days/days in enrollment period = % of aid earned by student 40/110 = 36%

–This means that the student did not earn 64% of their aid for the period of enrollment and this amount must be to the federal aid programs.

The order in which funding from federal aid programs must be returned is outlined below:

Order of return by the college:

Unsubsidized Federal Direct Loan
Subsidized Federal Direct Loan
Federal PLUS Loan
Federal Pell Grant
FSEOG (Federal Supplemental Educational Opportunity Grant)

Any funding returned to federal aid programs will, in most cases, create a balance due on the student’s account at the college. It is the student’s financial obligation to settle the balance created immediately or under the terms for the repayment that is put forth by the Student Account Office. Mission University will strive to create an affordable payment arrangement. Two years is the maximum time a school may allow for repayment. Students that decline payment in full or payment arrangements will be turned to collection.