You must be enrolled in at least six credits to receive Direct Loans.

Subsidized

Federal Subsidized Loans are need-based loans that must be repaid. You won’t be charged interest while you’re enrolled in college or during your six-month grace period.

Interest: 6.53% (rate for July 1, 2024–July 1, 2025)
Fees: 1.057% origination fee (October 1, 2020–October 1, 2025)
1.059% origination fee (October 1, 2019–October 1, 2020)
Grace period: 6 months

Unsubsidized

Federal Unsubsidized Loans are non-need-based loans that must be repaid. Interest is charged from the time you receive the funds.

Interest: 6.53% (rate for July 1, 2023–July 1, 2024)
Fees: 1.057% origination fee (October 1, 2020–October 1, 2025)
1.059% origination fee (October 1, 2019–October 1, 2020)
Grace period: 6 months

Direct Loan Amounts (Subsidized and Unsubsidized)

• Aggregate Subsidized Loan Limit: $23,000
• Combined Aggregate Subsidized and Unsubsidized Loan Limit: Dependent—$31,000; Independent—$57,500

To check your current federal loan balance, you can go to StudentAid.gov. You will need your FSA ID to log in.

Direct Loan Process

1. Student accepts or declines awards.
2. Student completes Loan Entrance Counseling.
3. Student signs a Master Promissory Note. You will need your FSA ID 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 during the Fall and Winter Terms. 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 StudentAid.gov.

The PLUS loan is offered to qualified biological or adoptive parents of dependent undergraduate students regardless of financial need. A parent is not guaranteed to receive the PLUS loan. Upon application, the US Department of Education (DOE) will evaluate your credit and approve or deny your application based on your credit score and history.

If you have any questions about the decision regarding your PLUS loan, please contact the US Department of Education at 1-800-557-7394.

Interest: 9.08% (rate for July 1, 2024–July 1, 2025)
Fees: 4.228% origination fee (October 1, 2020–October 1, 2025)

If you do not request a deferment, you will be expected to begin making payments after the loan is fully disbursed (paid out). During periods of deferment, interest will accrue on your loan. You may choose to pay the accrued interest or allow the interest to be capitalized (added to your loan principal balance) when you have to start making payments. Your loan servicer will notify you when your first payment is due.

PLUS Loan Process

1. Apply for the PLUS loan. To apply for the loan, the parent borrower will use their Social Security number and FSA ID to sign in to StudentAid.gov. After the parent signs in, tap on “Request a PLUS Loan.”
2. Authorize a credit check. The parent will be asked to authorize a credit check when applying for the PLUS loan. The Office of Financial Aid will receive confirmation of the credit decision along with the amount requested.
3. Complete a Master Promissory Note. If you are a first-time borrower or if you have had an endorser on a previous PLUS loan, complete the Master Promissory Note. A Master Promissory Note is valid for ten years; however, a new credit report will be initiated by the DOE each time.
4. Receive your PLUS loan disclosure statement. The parent will be mailed a disclosure statement from the Federal Direct Loan Servicer which will verify the loan has been approved.

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. 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. The interest rates on these loans can be higher than the federal rate.
3. 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. At FASTChoice, 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 student billing to determine your balance due.
3. Obtain 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.