How do I find out if I qualify for a Federal Direct Student Loan?
Your school determines your subsidized and unsubsidized Direct loan eligibility; details of your eligibility will be included in the financial aid award package provided to you by your school. The same application is used for both loan types; you do not need to complete multiple applications.
What is the difference between Subsidized and Unsubsidized loan?
To be eligible for the Subsidized Direct Loan, you must have demonstrated financial need to borrow a Subsidized Direct loan. The federal government pays the interest while you are enrolled in school (at least half-time) and during grace and deferment periods.
The Unsubsidized Direct Loan is not based on demonstrating financial need and the federal government does not pay the interest; you are responsible for all interest. Interest begins to accumulate immediately upon disbursement. Repayment of accrued interest will be deferred until repayment of principal is required.
What do I need to do after I have accepted my loans?
Once a student loan has been accepted by a student there are still a few steps that need to be completed before the loan will credit to a student's account.
First-time borrowers of the Federal Direct Loan program will be required to sign a Master Promissory Note (MPN) and complete and online entrance counseling session. The Master Promissory Note is valid for 10 years and once signed will be used for any Direct Loan through this 10-year period. Entrance counseling is a short orientation to the rights and responsibilities of being a student loan borrower. Both of these steps must only be completed once for each student while they are attending Saint Michael's. The MPN and Entrance counseling can be completed online through https://studentloans.gov.
When can I get my loan funds?
Loans are disbursed by term. Once you have resolved all eligibility issues (including verification and satisfactory academic progress) your financial aid for the upcoming term will in most cases be disbursed on the first day of classes. First time, first year borrowers will have their loan disbursed 30 days after the first day of classes. Final adjustments due to changes in your credit hours will occur approximately two weeks after the start of the term. Your financial aid will be credited to your Saint Michael's tuition and fees, room and board and miscellaneous fees.
What happens to excess loan funds on my student account?
If the amount of financial aid and other credits on your bill exceed tuition, fees, and other charges, you may receive a refund. You may use your refund for books, indirect expenses, or any other education expenses for the term. You will receive a check in your Saint Michael's mail box or you can arrange to have it held in the Cashier's office. No funds will be released before the first day of classes.
How do my parents borrow from the PLUS loan program?
If a parent of a dependent student would like to borrow the PLUS loan, they need to complete the FAFSA. To apply for the PLUS loan, the parent needs to complete the Master Promissory Note (MPN) and the PLUS Loan Application on the Federal website https://studentloans.gov. In addition, they must complete the Federal Direct PLUS Loan Data Worksheet and mail or fax the form back to Student Financial Services, Box 4, or fax to 802.654.2591.
Please be aware that the Federal Direct PLUS Loan is contingent upon a credit approval and can only be certified for the amount remaining after consideration of the cost of attendance less all other financial aid awarded and accepted.
How can I make changes to my loan amount?
If you would like to adjust/reduce the Federal Stafford Loan or Federal Perkins Loan you were awarded, please use this form. Revisions to these awards must be submitted in writing.
Private/Alternative Loans
You or your parents may wish to explore the private loans that are not federally guaranteed as an additional resource to fund your education. Please make sure you explore the Federal loan options first (which carry some benefits not available with private or alternative loans) before applying for a private loan. Many banks and other lending institutions provide these alternative loans. However, we strongly recommend that you use these loans sparingly as the terms are not as favorable as the Federal loan programs. In most cases an undergraduate student will require a co-signer on his/her loan application.
We do not have a preferred lender list but instead recommend that you view an unbiased list of private loans at the following link:
http://www.studentlendinganalytics.com/alternative_loan_options