Loans
GradPLUS Loan Massachusetts No Interest Loan Alternative Loans
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.
Federal Direct Subsidized Stafford Loans
A federally funded and administered loan awarded by the institution to students who demonstrate need, meet eligibility requirements and are enrolled at least half-time in a degree program. A Free Application for Student Aid (FAFSA) must be filed with the school. This loan is a federally subsidized loan which means there are no interest charges while the student is enrolled.
First-time borrowers at the College must complete Entrance Counseling and sign a Master Promissory Note (MPN) before funds can be disbursed. Loan funds come directly from the federal government and are paid by crediting the student's tuition account. For first-time enrolled students, the amount of the loan awarded will be credited to the student's Mount Ida College tuition account approximately 30 days after the start of the semester.
Award amounts (per Academic year):
- Freshmen (0-29.5 credits) up to $3,500
- Sophomores (30-59.5 credits) up to $4,500
- Juniors & Seniors (60-120 credits) up to $5,500
- Graduate Students up to $8,500
Terms:
- Fixed interest rate of 4.5%
- Interest and principal are subsidized by the government until the student ceases to be enrolled at least half-time
- Repayment begins 6 months after the student graduates, withdraws or stops attending school at least half-time
- Up to a 10 year repayment period - $50 minimum monthly payment
- A 1% fee may be deducted from loan proceeds prior to disbursement
Federal Direct Unsubsidized Stafford Loans
A federal funded loan, not need-based, available to eligible student borrowers, enrolled at least half-time. A Free Application for Federal Student Aid (FAFSA) must be filed with the school the student plans to attend. First time borrowers at the College must complete Entrance Counseling and sign a Master Promissory Note (MPN) before funds can be disbursed. For newly enrolled students, the amount of the loan awarded will be credited to the student's Mount Ida College tuition account approximately thirty days after the start of the semester.
- Freshmen (0-29.5 credits)
- Dependent Student - up to $5,500
- Independent Student - up to $9,500
- Sophomores (30-59.5 credits)
- Dependent Student - up to $6,500
- Independent Student - up to $10,500
- Juniors & Seniors (60-120 credits)
- Dependent Student - up to $7,500
- Independent Student - up to $12,500
- Graduate Students
- Dependent Student - N/A
- Independent Student - up to $20,500
Terms:
- Interest and principal may be deferred until student ceases to be enrolled
- Interest accrues during in-school grace and deferment periods
- Fixed interest rate of 6.8%
- Interest is not paid by the government. Borrower is responsible for all interest payments
- Repayment begins 6 months after the student graduates, withdraws or stops attending school at least half-time with a $50 minimum monthly payment
- Up to a 10 year repayment period
- A 1% fee may be deducted from loan proceeds prior to disbursement
Aggregate Loan Limits - Federal Direct Stafford Loans
| Combined Base Limit for Federal Direct Subsidized and Federal Direct Unsubsidized Stafford Loans | Additional Limit for Federal Direct Unsubsidized Stafford Loans | Total Limit for Federal Direct Unsubsidized Stafford Loans (minus Federal Direct Unsubsidized Stafford amounts) | |
| Dependent Undergraduate Students (whose parents were not denied a PLUS loan) | |||
| Independent Undergraduate Students (and dependent students whose parents were denied a PLUS loan) | |||
| Graduate and Professional Students |
Federal Direct Stafford Loan Entrance Counseling and Master Promissory Note:
Federal Direct Stafford Loan Entrance Counseling is a Federal requirement for all students borrowing a Federal Direct Subsidized and/or Unsubsidized Stafford Loan for the first time at Mount Ida College. Students are required to complete Federal Direct Stafford Loan Entrance Counseling before the proceeds from the Federal Direct Stafford Loan can be disbursed to the student account.
The Federal Direct Stafford Loan Master Promissory Note (MPN) is a legally binding agreement to repay the student loan. This agreement is between the student and the Department of Education. A parent cannot complete the Federal Direct Stafford Loan Master Promissory Note (or Entrance Counseling) on the student's behalf. Once the student borrower signs the MPN for enrollment at Mount Ida College, she/he will not need to sign again as long as she/he remains continuously enrolled at the College in a degree program.
We suggest Macbook or Macbook Pro users utilize Mozilla Firefox Internet Browser to avoid complications signing in.
Please note that Federal Direct Stafford Loan funds will not be disbursed to your student account until you have completed the Entrance Counseling requirement, the Federal Direct Stafford Loan Master Promissory Note and received confirmation from the Department of Education that both requirements have been satisfactorily completed.
Federal Direct Stafford Loan Exit Counseling
Once a student ceases enrollment requirements for their Federal Direct Stafford Loan(s) at the College, they must complete the Exit Counseling process online at www.nslds.ed.gov. Information regarding your loan exit requirements will be sent to the student directly. Mount Ida College will provide information to the National Student Loan Data System (NSLDS) which is accessible by lenders, guarantee agencies and other higher education institutions who are authorized users of the NSLDS data system.
Federal Direct Parent PLUS Loans
The Federal Direct Parent Loan for Undergraduate Students (PLUS) allows parents to borrow on behalf of their dependent undergraduate students, who are enrolled at least half-time. Eligibility for this loan is not based on financial need but the student and parent(s) with whom the student resides must file a FAFSA and this loan does require a credit check. Parents may borrow up to the cost of attendance less any financial aid. You must be the student's biological or adoptive parent. Your child must be a dependent student who is enrolled at least half-time. For financial aid purposes, a student is considered "dependent" if he or she is under 24, unmarried, and has no legal dependents at the time the Free Application for Federal Student Aid is submitted. (Exceptions are made for veterans, wards of court, and other special circumstances.) If a student is considered dependent, then the income and the assets of the parent have to be reported on the FAFSA.
Eligibility for this loan is not based on financial need but does require a credit check. Federal Direct Parent PLUS Loan borrowers cannot have an adverse credit history. In addition, parents and their dependent child must be U.S. citizens or eligible noncitizens, must not be in default on any federal education loans or owe an overpayment on a federal education grant, and must meet other general eligibility requirements for the Federal Student Aid programs.
To take out a Federal Direct Parent PLUS Loan for the first time, you must complete a Federal Direct Parent PLUS Loan Application and Master Promissory Mote (MPN). The MPN is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. It also explains the terms and conditions of your loan(s). If your application for the loan is approved, you'll receive a disclosure statement that gives you specific information about the loan that the school plans to disburse under your MPN, including the loan amount and loan fees, and the expected loan disbursement dates and amounts. Loan proceeds will be credited to the tuition account no earlier than ten days prior to the start of the semester. Payment on interest and principal begin after the second disbursement of the loan.
NOTE: If a parent is denied the Federal Direct Parent PLUS Loan, his/her dependent student may be eligible for additional Federal Direct Unsubsidized Stafford Loan funds.
View additional information about this loan at StudentLoans.gov
Award amounts:
- Maximum per year, per student equals Cost of Education minus financial aid awarded
- No aggregate loan limits
- To determine the amount you will want to borrow take the total expected direct expenses less the total expected financial aid and divide it by the net percentage (97.5%).
For example, if your balance is $12,000 and the Federal Direct Parent PLUS Loan has a 2.5% fee the amount of a loan you would need to apply for is $12,308. This will ensure that the balance on your student's account and the origination fee for the loan is paid.
Step 1 - Calculating the percentage: 100% - 2.5% (fee) = 97.5%
Step 2 - Calculating the amount to apply for: $12,000 (balance) / .975 = $12,308 (amount you will want to borrow)
Terms:
- Fixed interest rate of 7.9%
- Repayment begins within 60 days after full disbursement of the loan proceeds
- Parents have up to 10 years for repayment
- $50 minimum payment
- Up to a 4% fee is deducted from loan proceeds prior to disbursement
- All fees are deducted from loan proceeds at disbursement
- Deferment option
- Interest only option
Information that you borrowed from the Federal Direct Loan Program will be sent to the National Student Loan Data System (NSLDS), and will be accessible by guarantee agencies, lenders and institutions determined to be authorized users if the data system.
GradPLUS Loan
The federal government offers graduate students enrolled at least half-time in a degree program in need of additional financial resources beyond that offered as a result of filing the FAFSA, an opportunity to apply for a Federal Direct GradPLUS Loan. To be eligible for this loan program which must be repaid; you must first file a FAFSA and be awarded your eligibility under the Federal Direct Stafford Loan Programs (Subsidized and Unsubsidized). There is a minimal credit check requirement. Information that you borrowed from the Federal Direct Loan Program will be sent to the National Student Loan Data System (NSLDS), and will be accessible by guarantee agencies, lenders and institutions determined to be authorized users if the data system.
Award amounts:
- Maximum per year, per student equals Cost of Education minus financial aid awarded
- No aggregate loan limits
- To determine the amount you will want to borrow take the total expected direct expenses less the total expected financial aid and divide it by the net percentage (97.5%).
For example, if your balance is $12,000 and the Federal Direct GradPLUS Loan has a 2.5% fee the amount of a loan you would need to apply for is $12,308. This will ensure that the balance on your student's account and the origination fee for the loan is paid.
Step 1 - Calculating the percentage: 100% - 2.5% (fee) = 97.5%
Step 2 - Calculating the amount to apply for: $12,000 (balance) / .975 = $12,308 (amount you will want to borrow)
Terms:
- Fixed interest rate of 7.9%
- Repayment begins within 60 days after full disbursement of the loan proceeds
- Parents have up to 10 years for repayment
- $50 minimum payment
- Up to a 4% fee is deducted from loan proceeds prior to disbursement
- All fees are deducted from loan proceeds at disbursement
- Deferment option
- Interest only option
Before Federal Direct GradPLUS Loan proceeds can be credited to a student's tuition account, the Office of Financial Aid must receive confirmation from the Department of Education that the applicant has successfully completed Entrance Counseling, a Federal Direct GradPLUS Loan Master Promissory Note and passed a credit check.
For additional information about the Federal Direct GradPLUS Loan reference the U.S. Department of Education Student Guide.
Massachusetts No Interest Loan
This loan program is funded by the Commonwealth of Massachusetts and administered by the College for Massachusetts residents enrolled full-time in a degree program working toward their first bachelor's degree who demonstrate high need. This is a loan and must be repaid. No Interest Loans are subject to available funding. The minimum NIL award you can receive is $1,000, with a maximum award amount of $4,000 per academic year. NIL award amounts are determined according to financial need. A NIL eligible student has a lifetime borrowing limit of $20,000.
You will be required to sign a Promissory Note, Private Education Loan Applicant Self-Certification Form and complete a Loan Entrance Interview with a Representative from Financial Aid at the start of the semester. Loan proceeds will be credited to your tuition account once the loan proceeds are received from the Commonwealth but no earlier than the end of the add/drop period for the semester.
Massachusetts No Interest Loan Exit Interview
Borrowers of Massachusetts No Interest Loans are required to complete an Exit Interview prior to ceasing enrollment on a half-time basis. This may now be completed online. You will be asked to log on to Educational Computer Systems, Inc (ECSI) website to complete the Exit Interview. This is the loan servicing company for the Massachusetts Department of Education. You will be required to provide family information and personal references. Please be sure to have this information ready when you begin the online Exit Interview. If you have any questions regarding your Massachusetts No Interest Loan debt or the Exit Interview process, please contact the Office of Financial Aid.
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.
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 explore the best product for their individual circumstances. Local banks, credit unions, and other national lenders offer student loans.
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. Mount Ida College will work with and process loans for any lender of your choice without penalty by the College. Students and parents have the right to select the lender of their choice and are not required to use any lenders on the suggested list. 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.
Private Education Loan Self-Certification Form Information
Effective February 14, 2010, lenders of private education loans are required to collect a completed and signed Self-Certification Form (PDF) from the student prior to disbursing the loan proceeds to the College. This requirement applies to any private education loan(s) that are not at least partially disbursed prior to the effective date. Private education loans include all Alternative Loans, as well as the Massachusetts No Interest Loan program. Individual lending institutions are implementing their own procedures to comply with this new regulation, so you should contact your lender directly if you have specific questions about the process for submitting this form.
If you do not submit a completed and signed Self-Certification Form to your lender, your loan funds will not be disbursed to the College.
Regulation Z - Truth in Lending (TILA)
The Higher Education Opportunity Act (HEOA) enacted August 2008 amended the Truth-in-Lending Act (TILA) establishing private education loan disclosure requirements about loan terms on or with the loan application and lenders must also disclose information about lower cost alternatives like federal student loans. Additionally, once the loan is approved and finalized for disbursement, additional disclosures must be provided. These regulations were passed to ensure that borrowers of private education loans have the necessary information to make informed choices about financing products to fund educational costs. These regulations apply to all private education loans but not to loans under the Federal IV loan programs (Stafford, Perkins and PLUS). We are providing a model Private Lender Agreement (PLA) Form as an example of what your lending institution is required to share with you upon borrowing an educational loan.
Click here to view the Model PLA Agreement Form (PDF)
Click here to view the Method and Criteria for Selecting Alternative Loan List
Click here to view the Alternative Loan Annual Application and Solicitation Disclosure Notices
You will find, if you have borrowed a private educational loan previously, the process of applying for and receiving an education loan will take a longer period of time. Therefore, we encourage you to start early in the planning of your educational financing so you do not experience delays in receiving your education loan proceeds. Under these amendments, you, the borrower will have additional responsibilities as a loan borrower including acknowledgement of the disclosure statements and completion of the Self-Certification Form. We encourage you to check with your lender to ensure you complete all necessary paperwork. Also, we invite you to contact the Office of Financial Aid if you have any questions about these requirements.
For more detailed information on each option, please download the Financing Options Chart (PDF) or click here to apply for an Alternative Loan.
For more information, please contact us finaid@mountida.edu or 617-928-4785.