Fill out my online form.

Loan Basics

Over the years, there has been an increase in the percentage of financial aid awarded in the form of loans. Low interest rates have made borrowing attractive for students and families. Loan programs make it possible for millions of students, who previously could not afford it, to obtain a post-secondary education. By spreading the cost of their education over the term of the loan, they can attend the school of their choice.

Available Loans

Federal Subsidized Direct Loans

Undergraduate students can benefit from low-interest, government Direct Loans. All students are eligible for federal loans if they are enrolled at least half-time (six or more credit hours) in an eligible degree program.  Federal loans do need to be repaid but your repayment would not begin until six months after graduation or six months after enrollment drops below six credit hours.  These six months are referred to as the “loan grace period”.

A subsidized loan is one for which the government “forgives” the interest that would normally accrue while you are enrolled in classes and during the loan grace period.

Visit www.studentaid.gov for more information.

Federal Unsubsidized Stafford Loan

Undergraduate students can benefit from low-interest, government Direct Loans. All students are eligible for federal loans if they are enrolled at least half-time (six or more credit hours) in an eligible degree program.  Federal loans do need to be repaid but your repayment would not begin until six months after graduation or six months after enrollment drops below six credit hours.  These six months are referred to as the “loan grace period”.

An unsubsidized loan is one for which the interest accrues from the time of disbursement (payment made to the institution) while you are enrolled in classes and during the loan grace period.

Visit www.studentaid.gov for more information.

Direct PLUS Loans

Direct PLUS Loans (Parent Loan for Undergraduate Students ) are affordable, low-interest educational loans designed to help parents cover the cost of their child’s education that is not covered with other financial aid. Eligibility for these government-guaranteed loans is not based on financial need, but applicants are subject to a credit check.

Visit www.studentaid.gov for more information.

Alternative Loans

Once you have exhausted all federal grant, loan and work opportunities along with institutional aid funds, but still do not have the personal resources to pay any remaining balance owed to Grace, a non-federal private alternative loan may be an option to consider.  Loan terms, such as interest rates and loan fees will vary depending upon the lender.  These loans are based on the borrower’s credit worthiness.  They are provided by commercial lenders and are very similar to any other type of non-collateral consumer loan.

Lenders offer different loan programs based upon program of study. Students can borrow up to the cost of education minus other aid.  All alternative loans require students to complete a separate application every year.

Please click on the link below to compare loan programs that Grace students have used during the past few years.  Grace does not endorse any such loan provider, nor does Grace have any type of relationship with any lender offering this type of educational loan.  Grace does not participate in any way in determining the credit worthiness of the applicant leading to approval or denial for this type of loan.  There are many regional and local lenders who also offer private loans and Grace will certify your loan application with any lender you choose.

Click here to find more information through FASTChoice.

Managing Loans

The federal government provides detailed information on how to manage your loans, including loan repayment, consolidation, default prevention, deferments and forbearance, and forgiveness of student loans.  Visit www.studentaid.gov for more information.

Loan Counseling

Loan Entrance Counseling

The Entrance Counseling session is required for students requesting loans.This is an online tutorial that will take you through the student loan process.  It will take 15-20 minutes to complete and once submitted, the Financial Aid Office is notified.

The Federal Government requires all students be counseled regarding your rights and responsibilities as a student loan borrower before you borrow. Your student loan money will not be applied to your bill until this federal requirement is completed.

Loan Exit Counseling

Before you graduate (or if you drop below half-time attendance), regulations require that you complete an exit counseling session. The counseling session provides information about how to manage your student loans after college.