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Federal Perkins Loan
The Federal Perkins Loan is a campus-based loan program administered
through the Financial Aid Office at Monmouth College and serviced by
UAS (University Accounting Service, LLC). Eligibility for the
Perkins Loan is determined based on the results of the Free
Application for Federal Student Aid (FAFSA) and the student’s
calculated financial need. If a student is eligible for the Federal
Perkins Loan, it will be included and offered as part of his or her
overall financial aid award package.
No interest
accrues on the loan during the years the student is enrolled in
college. The interest rate is a fixed rate of 5% once the student is
no longer enrolled. Payments are deferred as long as a student
remains consistently enrolled at least half-time (6 credit hours).
Students can take up to 10 years to repay their loans back to
Monmouth College.
Steps to Finalize
your Federal Perkins Loan
1) If you are awarded a Federal Perkins Loan on
your Monmouth College Financial Assistance Award Letter and wish to
accept the loan, indicate “yes” or “accept” next to the award.
2) After July 1, 2009, you will be contacted
through your MC email account and provided instructions on
completing a Master Promissory Note (MPN) for the Federal Perkins
Loan. The Perkins Loan MPN will be completed online at
www.signmyloan.com with the
use of your federally issued pin#. (The same pin# you used to sign
your FAFSA.) Wait for the email and then follow the instructions
included in the email.
3) An online Entrance Loan Counseling Interview is
required prior to the loan being disbursed. Instructions for
completing the Entrance Loan Counseling will be included in the
email after July 1, 2009.
Federal Stafford
Loan
Students who file the Free Application for Federal Student Aid
(FAFSA) are eligible to borrow through the Stafford Loan program.
Your grade level in college will help us to determine the amount you
are eligible to borrow. Depending on your financial need and the
total amount of your other assistance, we will determine if you
qualify for a Subsidized or Unsubsidized loan.
For a Subsidized
Stafford Loan, the federal government pays (or subsidizes) the
interest that accrues during the time the student is consistently
enrolled. The student will begin to incur interest after they are no
longer enrolled. For an Unsubsidized Stafford Loan, the federal
government does NOT pay or subsidize the interest expense.
Therefore, the interest that accrues on the loan during the
enrollment period is the student’s responsibility.
No loan
application is necessary, however, a student must complete the
Master Promissory Note (MPN) for the Federal Stafford Loan.
For the 2009-2010
academic year, Monmouth College will transition from processing
loans through private banks to processing loans directly with the
Federal Government, Department of Education. For all new students
and for existing students who have not borrowed previously, we will
process a Federal Direct Loan with the government. For our existing
students who have borrowed in the past through a private
bank/lender, we will provide the student with the option to continue
their lender relationship and we can process their loan again with
the lender of their choice.
There are maximum
borrowing limits for students that are determined based on the
student’s earned credits and year in college. These are outlined
below.
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Maximum
Subsidized
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Addt’l Unsubsidized
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Total Loan
Eligibility
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Class
Standing
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Earned
Credits
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*Additional Eligibility
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$3,500
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$2,000
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$5,500
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Freshman
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0-27 credits
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Up to $4,000
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$4,500
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$2,000
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$6,500
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Sophomore
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28-58 credits
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Up to $4,000
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$5,500
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$2,000
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$7,500
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Junior
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59-89 credits
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Up to $5,000
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$5,500
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$2,000
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$7,500
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Senior
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90-124 credits
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Up to $5,000
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*Additional eligibility for Stafford Loans exists for Independent Students or for Dependent students whose parent has been denied a Federal Parent (PLUS) Loan. For more information, please contact the Financial Aid Office at (309) 457-2129 or
finaid@monm.edu.
Steps to Finalize your
Federal Direct Stafford Loan
1) If you wish to accept the loan, indicate “yes” or “accept” next
to the award.
2) Visit www.dlenote.ed.gov to complete an online MPN. Complete the
information requested in its entirety to ensure timely processing.
3) Be sure to read all information. You will be asked to supply
personal information, along with two references with address and
phone numbers.
4) Electronically sign the MPN using your pin#. (The same pin# you
used to sign your FAFSA).
5) Visit www.dl.ed.gov to complete the necessary Entrance Loan
Counseling for the Federal Stafford Loan. This must be completed
prior to the loan being disbursed. By completing the Loan Counseling
you will be made aware of your rights and your responsibilities as a
borrower. When you submit your completed counseling online, Monmouth
College will receive confirmation. We will then proceed with
processing the loan.
Private/Alternative Loans
These types of loans are not part of the Federal Loan programs but
are available to students who wish to borrow through a private
source. We would strongly encourage all students to take advantage
of the Federal Loan programs prior to pursuing a private/alternative
loan.
The interest rates, terms
and fees vary greatly among the private loans and often are
determined by your credit rating and whether or not you have a
co-signer. Below are websites for a few of the private lenders that
we have the most experience with.
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