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Loans

  • A loan is a form of financial assistance that requires repayment. Repayment of principal typically begins six months after the student’s educational experience has ended. There are several types of loans available to Olivet students.
  • Types of loans: (Click on the appropriate link, or scroll down, for more information)
    Federal Direct Stafford Loans, including Subsidized Stafford Loans or Unsubsidized Stafford Loans
    Federal Perkins Loans
    Parent PLUS Federal Direct Loan
    Private Student Loans

    Free Application for Federal Student Aid  (FAFSA) 

    You must file the FAFSA to be eligible for federal student or parent loans. Online application requires a PIN for both you and a parent (if you are a dependent student).

    FAFSA forms should be submitted after January 1 for the fall semester. Some funding is limited, so for priority processing, submit the FAFSA as soon as possible. Make sure to include Olivet’s school code: 001741.

    You must submit a new FAFSA each school year to be eligible for state and federal financial aid. The FAFSA is not required for admission to Olivet.

    Federal Direct Stafford Loans

    There are two Stafford Loan programs, subsidized and unsubsidized. All students who wish to borrow through either of the Stafford Loan programs must complete the FAFSA each year. Ability to participate in the subsidized Stafford Loan program is based upon calculated need. A maximum of $23,000 during the time required to achieve an undergraduate degree may be borrowed by a qualified dependent student.

    Subsidized Stafford Loans 
    Type of aid
     
    Loan; must be repaid
     
    Award amounts
     
    Up to $3,500 for freshmen
    Up to $4,500 for sophomores
    Up to $5,500 for juniors, seniors and continued undergraduate-level study
     
    Application process
     
    Must have completed a Direct Loan Master Promissory Note (MPN), Direct Loan Entrance Interview, FAFSA, and all associated paperwork to complete your financial aid file
    Eligibility requirements
     
    Must show remaining financial need after other aid
    Repayment Begins six months after last date of half-time enrollment. Interest for most undergraduate students is fixed at 3.4% for 2011–2012.
    Renewal requirements
     
     Eligibility evaluated annually
    EFC eligibility range
     
    Open
    Enrollment requirements
     
    Half-time or more enrollment is required to obtain any of these funds.
     
    Grade-level eligibility
     
    All degree-seeking students
     
    Costs this aid can cover
     
    Any educationally related expense
     

    Unsubsidized Stafford Loans
    Type of aid
     
    Loan; must be repaid
     
    Award amounts
     
    Up to $6,000 for freshmen and sophomores
    Up to $7,000 for juniors, seniors and continued undergraduate-level study
    Up to $12,000 for graduate students
     
    Application process
     
    Must have completed a Direct Loan Master Promissory Note (MPN), Direct Loan Entrance Interview, FAFSA, and all associated paperwork to complete your financial aid file.
     
    Eligibility requirements
     
     Must show remaining financial need after other aid.
    Repayment Begins six months after last date of half-time enrollment. Interest is charged at a fixed 6.8%. The student is responsible for the interest on these loans beginning at the point of the first disbursement.
    Renewal requirements
     
    Eligibility evaluated annually
     
    EFC eligibility range
     
    Open
    Enrollment requirements
     
    Half-time or more enrollment is required to obtain any of these funds.
     
    Grade-level eligibility
     
    All degree-seeking students
     
    Costs this aid can cover
     
    Any educationally related expense
     

     Steps for obtaining a Stafford Loan: 

    1. Return signed financial aid award letter to ONU accepting loan.
    2. Complete Federal Direct Entrance Counseling at www.studentloans.gov (use student PIN).
    3. Complete Federal Direct Master Promissory Note at www.studentloans.gov (use student PIN).

    Federal Perkins Loan

    Olivet Nazarene University participates in this student loan program sponsored by the U.S. Department of Education. A maximum of $15,000 in four years of undergraduate study may be awarded in these loans. A FAFSA must be submitted annually for evaluation of need. Until the ONU Annual Authorization of Perkins Loan funds (determined by the U.S. Department of Education) have been exhausted, the limited funds are available only to students who have borrowed the maximum Stafford Loan for that term.  

    Federal Perkins Loan 
    Type of aid
     
    Loan; must be repaid
     
    Award amounts
     
    Up to $3,000
     
    Application process
     
    Must complete paperwork for this loan with the ONU Financial Aid Office.
    Eligibility requirements
     
    Must show substantial financial need. Must complete the Master Promissory Note (MPN) and Entrance Interview, as directed by information associated with your financial award letter.
    Repayment Begins nine months after last date of half-time enrollment. Interest is fixed at 5.0%, and no initial fees are taken from the loan.
    Renewal requirements
     
    Eligibility evaluated annually
    EFC eligibility range
     
    0-1,700
    Enrollment requirements
     
    Full-time enrollment required for full award receipt
     
    Grade-level eligibility
     
    All degree-seeking students
     
    Costs this aid can cover
     
    Any educationally related expense
     

    Click here for online loan counseling.

    Parent PLUS Loan

    This federal loan is available to credit-worthy parents for their child’s educational expenses. If a parent is denied a PLUS loan, the student may be eligible for additional Unsubsidized Stafford Loan funds. More detailed information may be obtained from the Olivet Office of Financial Aid.

    Parent PLUS Federal Direct Loan 
    Type of aid
     
    Federal loan taken out by the parent on behalf of the student. The parent is responsible for repaying the loan. Interest is charged at a fixed rate of 7.9%.
    Award amounts
     
    Parents may borrow up to the student’s full cost of attendance, minus all other aid.
    Application process
     
    The student must file a FAFSA and all associated paperwork. The borrowing parent must submit a Parent PLUS Federal Direct Loan Request Form and Parent PLUS Federal Direct Loan Master Promissory Note.
    Eligibility requirements
     
    Must be the parent of a dependent student. The parent borrower must be determined credit-worthy by the lender, and the loan amount must fit within the estimated cost of attendance, minus other aid.
    Repayment Repayment begins following the second disbursement.
    Renewal requirements
     
    The Parent PLUS Federal Direct Loan Request Form and the FAFSA must be completed annually
    EFC eligibility range
     
    Open
    Enrollment requirements
     
    Half-time or more enrollment is required by the student for the parent to obtain these funds on behalf of the student.
    Grade-level eligibility
     
    All grade levels for all undergraduate degree programs 
    Costs this aid can cover
     
    Any educationally related expense
     

    Notes about obtaining a Parent PLUS Loan:
     

    1. Complete application online and sign PLUS Master Promissory Note at www.studentloans.gov (Use Parent PIN)
    2. Deferment of payment is available after beginning of second semester.

    Private Student Loans 

    Outside loans are available based on a student’s credit-worthiness, and may require a co-signer.

    Search the Internet for “Private College Loans.”

    These are student-initiated loans in the student’s name. A co-signer is usually required for these loans, and they have mostly adjustable rates (U.S. citizen with acceptable credit score).