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:
- Federal Direct Stafford Loans including Subsidized Stafford Loans or Unsubsidized Stafford Loans
- Direct PLUS Loan Application
- 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 FSA ID for both you and a parent (if you are a dependent student).
The FAFSA becomes available on October 1 for the following school year. 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 $31,000 in Stafford Loans ($23,000 of which can be subsidized) 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 Counseling, 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 2.71% for 2020-2021. |
| 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 $5,500 for freshmen and sophomores Up to $7,500 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 Counseling, 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 2.75% for 2020-2021. 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:
- Return signed financial aid award letter to ONU accepting loan.
- Complete Federal Direct Entrance Counseling at www.studentaid.gov (use student FSA ID).
- Complete Federal Direct Master Promissory Note at www.studentaid.gov (use student FSA ID).
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.
| Direct PLUS Loan Application for Parents | |
|---|---|
| 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 5.30% for 2020-2021. |
| 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, but parent can request in the application for deferment until six months after last date of student’s half-time enrollment. |
| Renewal requirements | The Direct PLUS Loan Application for parents 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:
- Complete application online and sign PLUS Master Promissory Note at www.studentaid.gov (Use Parent FSA ID )
- 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.” Visit https://www.credible.com.
These are student-initiated loans in the student’s name. A co-signer is usually required for these loans (U.S. citizen with acceptable credit score).