Loans
Direct Student Loan Direct Parent PLUS Direct Grad PLUS Alternative
Since college is one of the most important investments you will make in your lifetime, including loans in your financial plan will help make a college education even more affordable. Mount Ida College offers a variety of loan options for parents and students to finance balances not covered by financial aid. Education loans typically accrue interest at a lower rate than other private loans; repayments on these loans vary according to program.
Direct Student Loan
All students who complete the FAFSA are eligible to borrow student loans from the Direct Lending loan program, without collateral or credit check. The college will notify the student of his/her eligibility for a Direct Student Loan on the award letter if the student is eligible. Freshman are eligible to borrow up to $3,500, sophomores may borrow up to $4,500, and junior and seniors may borrow $5,500. The interest rate is variable, not to exceed 8.25% over the life of the loan, and is adjusted every July 1st.
Direct Student Loans are awarded to eligible students who demonstrate financial need. No interest accrues on this loan while the student is enrolled. Recipients of the Direct Student Loan are required to begin repayment six months after graduation, upon withdrawal from Mount Ida College, or if enrollment falls below six credits. The loan begins to accrue interest at any of these points in time.
Unsubsidized Direct Student Loans can be awarded to students who are not eligible for need-based loans. Unsubsidized Direct Student Loans accrue interest while you are in school and repayment begins six months after graduation, upon withdrawal from Mount Ida College, or if enrollment falls below six credits. You have the option to repay the interest while enrolled or to defer interest payments into the regular repayment schedule. All students are eligible to borrow a $2,000 Unsubsidized Direct Student Loan. Independent students who qualify for the Direct Student Loan may also be eligible to borrow additional funds under the Unsubsidized Direct Student Loan at $4,000 their first and second years and $5,000 their third and fourth years. If you are a dependent student, you may receive additional Unsubsidized Loan funds only if your parent is denied the Parent PLUS Loan.
Click here to apply for a Direct Student Loan
Entrance Counseling
First time borrowers of Direct Student Loans are required to complete a one-time entrance counseling session to learn about their rights and responsibilities as a borrower. This must be done before funds can be disbursed.
Click here to complete your Entrance Counseling
Exit Counseling
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A student who will be graduating and has borrowed a Federal Stafford Loan or a Direct Student Loan while attending Mount Ida is required by the federal government to complete Exit Counseling. The Exit Counseling is also required for student borrowers who will not be returning to the college after a term of attendance. You may complete Exit Counseling at the Here I Go fair or in the Financial Aid Office.
The Direct Parent Loan for Undergraduate Students (PLUS) allows parents (biological or adoptive parent or the student's stepparent, if the biological or adoptive parent has remarried at the time of application) to borrow from the federal government on behalf of their dependent students (enrolled in at least 6 credits). Eligibility for this loan is not based on financial need but does require a credit check. It is also important to note that the parent and student must be U.S. citizens or eligible non-citizens and neither can be in default on a prior student loan or owe a refund on a federal grant in order to be considered for a PLUS Loan. Parents are the primary borrowers and may borrow up to the yearly cost of attendance less financial aid.
The interest rate for Direct PLUS Loans is a fixed rate of 7.9%. Interest is charged on Direct PLUS Loans during all periods, beginning on the date of your loan's first disbursement. In addition to interest, you pay a loan origination fee that is a percentage of the principal amount of each Direct PLUS Loan that you receive. This fee helps reduce the cost of making these low-interest loans. We deduct the fee before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.
Please keep in mind that when you apply for a PLUS loan you will need to add the origination and/or default fee to the amount of money you are looking to borrow. On average, there is a charge of 3 – 4%. Once you have determined the fee you will want to take the “total expected direct expenses less total expected aid” figure from the financial aid award worksheet and divide it by the net percentage (96% or 97%).
For example, if your balance is $12,000 and your PLUS lender has a 4% fee the amount of loan you would need to apply for is $12,500. This will ensure that the balance on your student’s account, the origination fee and/or default fee for the loan are paid.
Step 1 – Calculating the net amount: 100% - 4% (fee) = 96%
Step 2 – Calculating the amount to apply for: $12,000 (balance) / .96 = $12,500 (amount you will want to borrow)
There is no grace period for Direct PLUS Loans - the repayment period for each Direct PLUS Loan you receive begins 60 days after your school makes the last disbursement of the loan. However, if you're a parent PLUS borrower who is also a student, you can defer repayment while you're enrolled in school at least half time and (for Direct PLUS Loans first disbursed on or after July 1, 2008) for an additional 6 months after you graduate or drop below half-time enrollment. If you're a parent PLUS borrower, you can defer repayment of Direct PLUS Loans first disbursed on or after July 1, 2008 while the student for whom you obtained the loan is enrolled at least half time, and for an additional 6 months after the student graduates or drops below half-time enrollment.
In the case that a parent is not considered credit worthy for a PLUS, his/her dependent may be eligible for an additional Unsubsidized Direct Student Loan. The financial aid office can discuss this option with you.
Click here to apply for a Direct PLUS Loan
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Direct Graduate / Professional PLUSGraduate or professional students must complete a FAFSA and are then eligible to borrow under the PLUS Loan Program up to their cost of attendance minus other estimated financial assistance. The terms and conditions applicable to Parent PLUS Loans also apply to Graduate / Professional PLUS loans.
Click here to apply for a Direct Grad PLUS Loan
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Alternative Loans
Many families also look to supplement their college finance plans with alternative funding that is available in the form of private education loans. Private loans are available from a variety of sources and provide supplemental funding when other financial aid does not cover costs. Because banks or other financial institutions -- rather than government agencies -- guarantee these loans, interest rates are generally higher than federal loans, but lower than personal loans.
Alternative loans will be in the students own name often requiring a co-signer. Students must be enrolled in at least six (6) credits to be eligible for these loans.
Repayment usually begins six months after a student graduates or leaves the college. Interest accrues while the student is attending college.
Students and their families are encouraged to shop for the best product for their individual circumstances. Local banks, credit unions, and other national lenders offer student loans.
When searching for a private loan, make sure you carefully consider the terms and conditions associated with it. Always borrow conservatively. We recommend that you search for school certified loans. This means that the loan company contacts the school for information on the borrower's eligibilty. Borrowing a school certified loan means that the money comes to the school directly. Loans that go directly to borrowers, called "direct to consumer" often have higher interest rates and less favorable terms. The financial aid office can not easily assist you should you have problems with a direct to consumer loan.
In general, Mount Ida College encourages students to look for loans that are school certified, have low interest rates, zero fees, and come with a variety of repayment options. Remember, when putting together your financial plan to keep alternative borrowing to the necessary minimum. Loan funds do not reach the College until 30 days after the start of the semester.
Click here to apply for an Alternative Loan
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Massachusetts No-Interest Loan
The Commonwealth offers a no-interest loan program to full-time students who are legal residents of Massachusetts and demonstrate financial need. Repayment begins six months after graduation, upon withdrawal from Mount Ida College or if enrollment falls below six credits. Loan amounts are based on the availability of funds and range from $1,000 to $4,000 per academic year.
For more information, please contact us finaid@mountida.edu or 617-928-4785.