Student Loan Programs

Loans are a form of Financial Aid that must be repaid. Students who borrow money are required by Federal Law to complete Entrance and Exit counseling. During these sessions, the rights and responsibilities for borrowers and repayment and deferment options will be explained. Loans may not be credited to a student’s account until he/she has completed an entrance counseling session or a “hold” will be placed on his/her account. A student who is graduating or withdrawing from the college must complete an exit counseling session or a “hold” will be placed on his/her

Federal Perkins Loan Program
This is a federally funded program administered by the college to full and part-time students based on demonstrated need. The interest rate is 5% and repayment begins 9 months after a student graduates, withdraws or drops below half-time enrollment.

Federal Direct Loans
Manor College participates in the Federal Direct Loan Program. Loans are either subsidized or unsubsidized.

A Subsidized Loan is awarded on the basis of fi nancial need with the federal government paying the interest on the loan until the end of the grace period. The grace period is a six-month period after a student graduates, leaves school or ceases half-time enrollment.

An Unsubsidized Loan is not based on need. Interest payments begin when the loan is disbursed. A student either makes quarterly interest payments or defers the interest and capitalizes it. Capitalization means the interest will be added to the principal and increases the amount to be repaid.

A student must be enrolled at least half-time (6 credits) to qualify for a Direct Loan. A full-time freshman (0-29 credits) may borrow up to $3,500 per year. Full-time sophomores (30+ credits) may borrow up to $4,500 per year. Direct loans for part-time students are calculated on a pro-rated basis. The interest rate from July 1, 2010 will be 6.00%. The interest rate will never exceed 8.25%.

Federal Direct Loan Program
This federally funded loan is made and guaranteed by the Federal Department of Education. A student must complete a Master Promissory Note online at www.studentloans.gov.

Federal Direct Parent Loan for Undergraduate Students (PLUS)
This federally funded loan is made to a credit-worthy parent. The parent may borrow an amount up to the cost of attendance less any other fi nancial aid. A parent must obtain a Master Promissory Note application online at www.studentloan.gov. Repayment on PLUS loan begins 60 days after the 2nd disbursement is made to the College. If a parent is denied for a PLUS loan, a dependent student is then eligible for an additional unsubsidized loan for up to $4,000 per year.

Private (Alternative) Loans for Undergraduate Students
These non-federally funded loans are given to students to help fund the cost of attendance beyond all federal and state loan and grant help. Private loans are credit-based loans. Each loan’s Web site should be reviewed for interest rates and repayment options before choosing a loan. A list of private loan lenders is available at the Financial Aid office.