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Loans

A loan is money you can borrow that must be repaid once you either a) graduate, or b) are enrolled in college/university less than half time. Loans can help bridge the financial gap left after you receive other types of financial aid. They can be an important resource for investing in your future.

Funding for federal loan programs subject to annual budget decisions.

Federal Student Loans

Federal student loans are offered to every student that files the FAFSA. The types and amounts of federal loans you're eligible for are determined by your need level and university grade level. Federal student loans have fixed interest rates, are deferred, and can be interest-free while you’re enrolled at least half time in a college/university.

Amount

  • $5,500* first year (up to $3,500 subsidized)
  • $6,500* second year (up to $4,500 subsidized)
  • $7,500* other years (up to $5,500 subsidized)

*Independent students are eligible for an additional $4,000 unsubsidized loan per year.

Interest rate

  • 5.50% fixed rate (After July 1, 2023)
  • 6.533% fixed rate (After July 1, 2024)

Loan fee

  • 1.057% (on or after Oct 1, 2020)

Repayment

More information

Unsubsidized Loan

Up to the cost of attendance, minus other financial aid.

Interest rate:

  • 7.05% (After July 1, 2023)
  • 8.083% (After July 1, 2024)

Loan fee:

  • 1.057% (on or after Oct 1, 2020)

Federal Direct PLUS Loan

Up to the cost of attendance, minus other financial aid.

Interest rate:

  • 8.05% (After July 1, 2023)
  • 9.083% (After July 1, 2024)

Loan fee:

  • 4.228% (on or after Oct 1, 2020)

Repayment:

More information:

Subsidized loans: Under a subsidized loan, the government pays (subsidizes) the interest on the loan while you are enrolled at least half time in a college.

Unsubsidized loans: Under an unsubsidized loan, interest begins accruing as soon as the loan is disbursed into your student account. Payments on the loan (and interest) are deferred while you are enrolled at least half time in a college/university. However, during this time, interest is still accruing and is being added to the principal balance of the loan. You have the option to pay the interest as it accrues.

Federal Parent Loans

The Parent Loan for Undergraduate Students (PLUS) is a federal loan that parents of dependent undergraduate students or graduate students can borrow to help cover college/university expenses.

If the parent(s) is denied the PLUS, the student is eligible for an additional $4,000 (freshman and sophomores) or $5,000 (juniors and seniors) unsubsidized Federal Direct Stafford Loan.

  • available to parents or graduate/professional degree students
  • 8.05% fixed interest rate (after July 1, 2023)
  • 9.083% fixed interest rate (after July 1, 2024)
  • loan fee of 4.228% (on or after October 1, 2020)
  • can be deferred while in school at least half time
  • modest credit check required
  • must file the FAFSA to apply
  • The U.S. Department of Education may require some parents to complete loan counseling

Apply at studentaid.gov by completing the PLUS request process. For more information about the PLUS go to studentaid.ed.gov/types/loans/plus

Private Loans

Private loans are credit-based loans offered by banks or credit unions to help families bridge the gap between the financial aid package they receive and the total cost of college/university. These loans are borrowed by the student but generally require a parent co-signer.

Additionally, private loans:

  • can have fixed or variable interest rates
  • accrue interest while you are enrolled in school
  • may require repayment while you are still in college/university
  • usually require a co-signer

If you are interested in applying for private loans we recommend you do so no more than 90 days prior to the start of the enrollment period.

  1. Before considering a private loan, make sure all federal, state and institutional financial resources have been exhausted.
  2. Compare federal loans at the Federal Student Aid website
  3. Compare private loans
  4. Borrow only the minimum amount needed for the upcoming school year, minus scholarships, grants, student loans, family contribution from income and savings, and any other aid sources.
  5. Avoid lenders that do not require Calvin certification on their loan application.
  6. Be suspicious of unsolicited loan offers.

While federal student loans should be your first choice, some students also choose to borrow from private lenders. Calvin has selected the following list of private lenders through a Request for Information (RFI) process to identify loans with borrower benefits such as competitive rates and good customer service.

You are welcome to borrow funds from the private lender of your choice regardless of their inclusion on this page. No matter who you choose, we highly recommend you compare and research your options ahead of time to find the best fit for you and your family. Along the way, we'll be happy to answer any questions or provide information as much as we're able.

Lenders:

Finalize Your Loans

Ensure your loans are properly disbursed (applied to your Calvin account) by completing the following steps.

  1. Go to https://studentaid.gov
  2. Click the blue "LOG IN" box.
    To log in, you will need your FSA ID, which you used when you completed your FAFSA. If you don’t know your FSA ID, then click "Create an FSA ID". This will allow you to either look up your FSA ID and password or create one.
  3. Complete your Master Promissory Note
    1. Click on "Complete Master Promissory Note" and follow the instructions there.
    2. You will receive immediate confirmation that your Master Promissory Note has been received and accepted. Print a copy of your Master Promissory Note for your records.
  4. Complete your entrance counseling
    1. Click on "Complete Entrance Counseling" and follow the instructions there.
    2. Complete the entrance counseling tutorial and entrance counseling quiz. The results of your quiz will be retrieved by Calvin’s Financial Aid Office.

Target Date: Once enrolled

  • Complete and accept your loans to tell us which loans you plan to use (your WorkDay login is required).

Important terms

Subsidized loans

Won't accrue interest while you are enrolled at least half time (6 credit hours), in deferment (postponed with approval) or in your grace period.

Unsubsidized loans

Accrue interest while you're in school. Interest payments are not mandatory while you're in school, but any interest accrued will turn into principal once the loan is in repayment.

Disbursement

Payment of the loan to your tuition, room & board account at Calvin. Federal student loans, Federal PLUS and Private Loans will be disbursed directly to the student's tuition account in two installments. Disbursements are split equally between the fall and spring semesters. With proper arrangements, uneven disbursements of a Federal PLUS or Private Loan can occur to account for significant differences in costs between one semester versus the other (enrollment in an off-campus semester, etc).

Promissory note

Binding legal document that MUST be signed by the student for a student loan. It lists conditions, rights and responsibilities of borrowing and repayment. Federal Direct Subsidized/Unsubsidized Stafford Loans and PLUS Loans must only be signed once (Master Promissory Note).

Co-signer

For private loans, this is the person who will be responsible for making payments if the primary borrower becomes unable or unwilling to make payments on the loan. A parent, spouse, or other relative may be a good candidate for co-signing. All of our alternative loan preferred lenders strongly suggest a co-signer in order to obtain the best interest rates and repayment terms possible.

Deferment

A period when repayment of the principal and interest of your loan is delayed. Most educational loans can be deferred while a student is enrolled in a college/university at least half time.

Leaving Calvin?

If you discontinue your education for any reason, you must contact the office of financial aid regarding your loans. You must also complete exit loan counseling.

Contact

If you wish to reduce or cancel your loan(s) or wish to sign a paper promissory note instead of the electronic note, please contact our office.

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