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Loan Options and Information

In addition to receiving Scholarships and Grants, loans allow you and/or your parent(s) to borrow additional money to help with your investment in your future. At Northland College, we offer Federal Stafford Loans, Federal Parent Loans for Undergraduate Students(PLUS) and Alternative Loans.

Federal Stafford Loan

Subsidized- Federal Subsidized Stafford Loans are need-based loans that must be repaid. The federal government pays interest while enrolled at least half time.

Interest: 4.5%
Fees: 1% origination fee and a .5% up-front interest rebate
Grace Period: 6 months

Stafford Loan Process

1. Student accepts or declines awards and returns the award letter to the Financial Aid Office.
2. Student completes Stafford Loan Entrance Counseling at studentloans.gov
3. Student signs a Master Promissory Note at studentloans.gov. You will need your FAFSA PIN number to sign electronically. 
4. Federal regulations require two equal disbursements within a loan period. If you have a loan for the full year, the two disbursements will be fall and winter sessions. If you are enrolled for only one semester your loan will be split into two equal payments within the semester.
5. When Northland College receives your loan disbursements, they are applied to your student account.

For additional information on Federal Student Loans please visit Student Aid on the Web

Federal Perkins Loan

The Federal Perkins Loan is a need based loan that must be repaid. This loan is awarded to the most needy students. We consider the educational expenses, other financial aid you receive and your family's estimated ability to help pay for your expenses. 

Interest: 5%
Fees: no fees
Grace Period: 9 months
Borrowing Limit: $4,000/year

Perkins Loan Process

1. Student accepts or declines awards and returns the award letter to the Financial Aid Office.
2. New Students complete Perkins Loan Entrance Counseling during orientation, Returning students with a first time award complete Perkins Loan Entrance Counseling in the Financial Aid Office.
3. Student completes the Recipient Information Form and the Loan Acknowledgement form.
4. Student signs a Master Promissory Note during orientation
5. Loan will be disbursed to the student account once all forms are received.

For additional information on Federal Student Loans please visit Student Aid on the Web 

Federal PLUS Loan

The Federal Parent Loan for Undergraduate Students (PLUS) is a loan program available to parents of dependent students, regardless of financial need. Parents can use a PLUS loan to bridge the gap between the cost of their child's education and the amount of other financial aid they receive.

Interest: 7.9%
Repayment: Repayment begins 60 days after the loan is fully disbursed to the student's account
Fees: 4%

PLUS Loan process

1. Parent completes a Northland College PLUS Loan Application. Download the PLUS Loan Application PDF version
2. The parent applies and signs the Master Promissory Note at https://studentloans.gov. They will need their FAFSA PIN to sign electronically.
3. To check loan status, contact Direct Loans at (800) 557-7394.
4. If the parent is denied the PLUS loan, the student may be eligible for an additional Stafford Unsubsidized Loan. Please contact the Financial Aid Office for additional information. 

Alternative Educational Loans

Alternative loans, commonly referred to as private loans, are commercial loans offered by banks and other private lenders to cover the costs of college not covered by financial aid. We strongly encourage every student to explore all funding options including scholarships, grants, work-study and federal loans (subsidized, unsubsidized and PLUS), prior to applying for a private loan.

These loans differ from federal loans in several ways:

1. First, these loans are not guaranteed, which means that both the student and the co-signer (if needed) will be subject to a credit check. 


2. Second, the interest rates on these loans can be higher than the federal rate. There are several places to go to find the current rates for Prime, T-bill, LIBOR and the other instruments that lenders use to set their interest rates, but we suggest you bookmark the following site: http://www.bankrate.com/brm/ratehm.asp. When you go to the above site there will be many indexes listed. The three main indexes that lenders use for private loans are: Wall Street Journal (WSJ) Prime, 91 day T-Bill, 1 month LIBOR plus a certain percent. 


3. Third, there are no interest rate caps on these private loans like there are with the federal loans (including the PLUS). While these loans typically have deferred payments while you are in school and offer a grace period, interest will still accrue during these time periods. Make sure to read the conditions and terms of the loan prior to signing the promissory note. This will ensure that you understand the loan terms when it comes time to repay the loan.

Alternative Loan Process:

1. Apply online through the lender of your choice, we are unable to recommend a lender. This will link you to FAST choice. Here you can learn more about alternative loans, find details about different lenders and loan programs, and select the loan that's right for you. 
2. Determine an amount. You are only able to borrow up to your cost of attendance minus your financial aid. Check with the student billing office to determine your balance due. 
3. Loan Approval Confirmation. Contact your lender to make sure they have approved your loan and the scheduled disbursement, if you have not received notification from them.

Go to FAST Choice