Benedict College participates in the Federal Direct Loan Program. At Benedict College, students are automatically awarded federal direct subsidized and/or unsubsidized loans as part of our financial aid offer to students. As the student, you have the choice to accept or decline a loan.
Federal Direct Loans are low-interest loans that are meant to help with the cost of college. There are two types of direct loans available for undergraduate students: subsidized and unsubsidized loans. The financial aid office automatically considers students for a loan through the awarding process.
As a result of legislation enacted in July 2012, eligibility for the Direct Loan interest subsidy will be limited for new borrowers (no student loans prior to July 1, 2013). New borrowers may only receive subsidized loans, up to 150 percent of the published length of the student’s current educational program. Once the student reaches that limit, he or she may borrow only unsubsidized loans, and interest begins to accrue on the student’s outstanding subsidized loan.
Entrance Counseling and Master Promissory Note
To receive your loans, you will need to complete loan requirements, such as loan entrance counseling and signing of a master promissory note.
If you have never received a Direct Loan or Federal Family Education Loan (FFEL),you are required to complete entrance counseling. Entrance counseling explains your responsibilities and obligations as a loan borrower.
Complete Entrance Counseling
https://studentaid.gov/entrance-counseling/
The MPN for Direct Subsidized Loans and Direct Unsubsidized Loans is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the U.S. Department of Education. It also explains the terms and conditions of your loan(s).
You may receive more than one loan under an MPN over a period of up to 10 years to pay for your educational costs, as long as the school is authorized to use the MPN in this way and chooses to do so.
Complete a Master Promissory Note (Subsidized and Unsubsidized Loans)
https://studentaid.gov/mpn/subunsub/landing
Benedict College will receive electronic notification when these requirements have been completed. You must be enrolled at least half-time (6 credit hours) for undergraduates to receive a Direct Loan disbursement. Once all award requirements have been met, your financial aid will be credited to your student account. Returning students must maintain Satisfactory Academic Progress, have remaining loan eligibility, and meet the Stafford Loan awarding requirements each academic year to continue eligibility for the Stafford Loan program.
Repayment:Â (https://studentaid.gov/manage-loans/repayment)
You will receive a six-month grace period before beginning loan repayment after you graduate, leave school, or drop below half-time enrollment. During this period, you should receive repayment information from your loan servicer and be notified of when your first payment is due. However, you are responsible for beginning repayment on time, even if you do not receive this information. You may create a sample loan repayment schedule and review loan repayment options online. Students must complete exit counseling whenever his/her enrollment drops below half-time. Benedict College will receive electronic notification when exit counseling has been completed. To view data on the federal student loans and grants you have received, visit the Federal Student Aid Website (Studentaid.gov)
Federal Direct Parent PLUS Loan
Through this program, parents of dependent undergraduate students can borrow up to the student’s cost of attendance minus any other aid the student receives.
General Eligibility Requirements
Student on whose behalf the parent is borrowing must file the Free Application for Federal Student Aid (FAFSA) online.
Student must be enrolled at least half-time in a program that leads to a degree.
Student must also meet the standards of satisfactory academic progress.
Borrower is a natural or adoptive parent of a dependent student who has been accepted for enrollment as a degree-seeking student; enrolled at least half-time; is a U.S. citizen, permanent resident or eligible non-citizen; and is making satisfactory academic progress.
Borrower does not have adverse credit history.
Borrower can not be in default on a federal student loan
Neither parent borrower nor student has property subject to a judgment lien for a debt owed to the United States.
Parent borrower is a U.S. citizen, permanent resident or eligible non-citizen.
To continue to receive PLUS Loans, you must reapply each academic year.
How to Apply?
Parent borrowers apply for this loan( https://studentaid.gov/plus-app/parent/landing) on StudentAid.gov. The application requires a credit check, but the credit check is valid for 180 days. A signed master promissory ( https://studentaid.gov/mpn/parentplus/landing) note is required. This is completed on StudentAid.gov as well.Â
Repayment
The parent borrower is responsible for repayment. Repayment begins 60 days after the final disbursement of the loan.
Parents can postpone repayment if the student is enrolled at least half-time.
Summary of PLUS Loan Process
At the end of the application, parent borrowers receive their credit check result. Here is a list of results and explanations of your result.
If the credit decision is approved, our office will be notified and the loan will be processed.
If the credit decision is denied, our office will be notified and the student may become eligible for additional unsubsidized loan funds. The amount of the unsubsidized loan is limited by cost of attendance and annual loan limits.
Parents with an adverse credit decision have the option to appeal or get an endorser. If your credit decision is changed, you are required to complete PLUS Credit Counseling to receive the loan.
Crediting of Parent PLUS Loan Funds
PLUS Loan funds are credited directly to the student’s account and will be applied to outstanding charges, such as tuition, fees, room and board. Any credit balance will be issued to the parent borrower via paper check, which will be mailed to the address provided on the Parent PLUS application.
Continuing Student Eligibility
PLUS Loans cannot be automatically renewed each year. Â Returning students must maintain Satisfactory Academic Progress and meet the PLUS Loan awarding requirements each academic year.
Private Loans
Private student loans are loans funded by banks, credit unions or state agencies. Private loans should be used to fill in any gaps in the cost of college after all federal options have been used.
Private loans are offered to all students in a degree eligible program or an approved certificate program. Parents may be eligible to borrow a loan too. Before you borrow a private loan, do your research. Look at interest rates, repayment terms and fees. After you explore all options, apply directly with your lender of choice. Your lender will do a credit inquiry and share your options.
Previous Loan Providers
Below is a list of private student loan lenders our students have used over the past five years. There is no significance attached to where a lender falls on the list, so please research all options available to make an informed decision. You are not limited to the lenders from this listing and may use any lender of your choosing.
College AvenueÂ
LendKey
Sallie MaeÂ
SoFiÂ
South Carolina Student Loan CorporationÂ
