Student Loans

 

APPLICATION PROCEDURES

 

Federal Stafford Loans

Students will be awarded either the Subsidized and/or Unsubsidized Federal Stafford Loans after they have completed the appropriate Free Application for Federal Student Aid (FAFSA).  Methodist College of Nursing will send an award letter that includes the amounts of these and any other available funds.  Students who have never had a Federal Stafford Loan through the college will need to complete the online application process and entrance loan counseling in order to recieve these funds.

Please click HERE to complete the application for the Federal Stafford Loan.

Students who have already recieved funding at Methodist College of Nursing from the Federal Stafford Loan program do not need to complete either of these processes.  A student who has already recieved Federal Stafford Loan Program funds at Methodist College of Nursing will automatically be certified for the amounts on their award letters.  Loan amounts may change at the request of the student or if other funding is recieved in place of these funds.

 

Alternative Education Loans

Students desiring an Alternative Education Loan need to contact the Coordinator of Financial Aid to discuss specific options.  Please contact Angela Robinson for more information.

 

Choosing a Lender

When selecting a student loan provider, students and parents have a wide ranged of choices.  Methodist College of Nursing has developed a list of preferred lenders based on a careful evaluation of offerings, quality, price and service.  This preferred lender list can be a useful tool for students and parents.  Students and parents should do their own research regarding student loan lenders.  The choice of lender is always up to you.

Some suggested criteria that you should use to select the lender that best meets your individual needs are below.

  • Does the lender offer to pay fees on the student’s behalf?
  • Does the lender offer competitive rates and pricing?
  • Does the lender offer interest rate reductions and rebates?
  • How easy is it for students to earn and keep rate reductions and rebates?
  • Does the lender have a minimum income requirement?
  • Does the lender require repayment while in school?
  • Does the lender provide combined billing for both federal and private loans?
  • Does the lender provide counseling on deferment and forbearance options?
  • Are repayment calculators and other online tools available?
  • Does the lender provide a variety of federal and private loan repayment solutions?
  • Does the lender offer loan consolidation options?
  • Does the lender educate borrowers about effective debt management?
  • Is the lender a well-known, reputable company?
  • What is the lender’s track record in the industry?
  • Is the company’s focus on student loans?
  • How many customers have loans with this lender?
  • Is the lender financially sound and strong?

 

STAFFORD LOAN LIMITS

 

Dependent Undergraduate Students (as of July 1, 2008)

  • Subsidized Stafford Loan annual maximum amount is $5,500 annually for juniors and seniors.
  • Unsubsidized Stafford Loan annual maximum amount is $7,500 annually for juniors and seniors.
  • Annual combined (subsidized and unsubsidized) stafford loan maximums are $7,500 for juniors and seniors.

Independent Undergraduate Students (as of July 1, 2008)

  • Subsidized Stafford Loan annual maximum amount is $5,500 annually for juniors and seniors.
  • Unsubsidized Stafford Loan annual maximum amount is $12,500 annually for juniors and seniors.
  • Annual combined (subsidized and unsubsidized) stafford loan maximums are $12,500 for juniors and seniors.

 

LOAN DESCRIPTIONS

 

Subsidized Federal Stafford Loans is a low interest loan, made available to students that attend at least half-time. Subsidized Stafford Loans currently have a fixed interest rate of 6.8%, but the interest rate decreases to a fixed 6.0% as of July 1, 2008.  Only students who demonstrate financial need qualify for the subsidized loan. As the name implies, the federal government pays the interest while you are still in school as at least a half-time student, throughout the six-month grace period and during periods of deferment.

The Unsubsidized Federal Stafford Loan is a low interest loan, made available to students that attend at least half-time.  The interest rate for Unsubsidized Stafford Loans is a fixed 6.8%, and is not changing on July 1, 2008.  Eligibility for an unsubsidized loan does not require financial need and the interest starts accruing when the loan is disbursed.

The Federal Parent Loan for Undergraduate Students (PLUS) is available to the Parents of Dependent Undergraduate students at an 8.5% interest rate. Applicants and repayment information are available through participating lenders. Borrowers must meet all eligibility criteria, which include being a US citizen or eligible non-citizen. Eligible parents can borrow up to the cost of attendance that is not covered by financial aid.

Alternative Education Loans are unsubsidized student loans offered by many banks or lending institutions. These loans are available to students to assist in their educational costs. Undergraduate students with good credit histories may be eligible to borrow without a co-borrower.