Loans

The Higher Education Opportunity Act was signed into law on August 18, 2008.  In the interest of providing students and families with full, fair, and effective information and to comply with this Act and all federal and state law standards, the college has prepared a Goucher College Code of Conduct for Education loans link:

Goucher College Code of Conduct for Education Loans

  William D. Ford Federal Direct Loan Program

Goucher College is pleased to announce that we are a full participant in the William D. Ford Federal Direct Loan Program and we will no longer be certifying Federal loans through the Family Federal Education Loan Program (FFELP).

The Federal Direct Loan program offers many benefits to Goucher students and parent borrowers, including:

• Consistent access to loan funds directly from the U.S. Department of Education
• Competitive rates and repayment options available to all borrowers
• Simple application process
• Quick receipt of funds
• Excellent customer service

Application Procedures

All students must complete the Free Application for Federal Student Aid (FAFSA) at http://www.fafsa.gov. Goucher's school code is 002073.

You will need your Federal PIN (sent by the U.S. Department of Education) when you complete the FAFSA online. You will use this PIN as your electronic signature and it represents the same legal obligation as your written signature. Students who do not have a PIN should go to http://www.pin.ed.gov and choose either "Apply for a PIN" or "Request for a Duplicate PIN".

Every Federal Direct Loan first time borrower must complete loan entrance counseling at https://www.dl.ed.gov/borrower/CounselingSessions.do?cmd=initializeContext. This tutorial outlines your rights and responsibilities as a federal loan borrower and is followed by a brief quiz. The counseling takes approximately 20-30 minutes to complete. Graduate students who are borrowing both Stafford and Grad Plus loans can do combined entrance counseling.

New Federal Direct Loan borrowers must sign a Federal Direct Stafford Loan electronic master promissory note (MPN). Students may sign their MPN electronically at http://dlenote.ed.gov. Go to: "Complete New MPN for Student Loans".

Please read the following important information before beginning an electronic MPN session:

• You will use your Federal FAFSA PIN to sign the MPN.
• You need two references. Please provide the complete name, address, and telephone number for two people who have known you for at least one year and who live at different addresses.
• You must use your full legal name as it appears on your social security card.
• Please note that you must complete the entire process in a single session. If you leave the site before signing the MPN, you must start over from the beginning.

You do not have to complete a new MPN if you have already signed a Federal Direct MPN for Goucher College or another Federal Direct Loan institution. Please visit the Federal Direct Stafford Loan servicing site if you already have a loan: https://www.dl.ed.gov/borrower/BorrowerWelcomePage.jsp.

Students demonstrating financial need and enrolled at least half-time in a degree-seeking program may borrow up to $3,500 for the first year of undergraduate study (0-26 credits), $4,500 for the second year (27-56 credits), and $5,500 for subsequent years of undergraduate study in a subsidized Federal Direct Loan. The interest rate is fixed at 5.6% for loans with a first disbursement date between July 1, 2009 and June 30, 2010. Interest is paid by the Federal government while the student is enrolled on at least a half-time basis, during the grace period, and during deferment. There is a 1.5% federal origination fee. The actual origination fee charged is 0.5% with the current rebate allowance of 1.0% for on time payments. The student will receive net loan proceeds of approximately 99.5% of the loan amount. The standard repayment period is ten years.

Graduate students demonstrating financial need and enrolled at least half-time (4.5 credits) may borrow up to $8,500 per grade level in a subsidized Federal Direct Loan. The interest rate is fixed at 6.8%. Interest is paid by the Federal government while the student is enrolled on at least a half-time basis, during the grace period, and during deferment. There is a 1.5% federal origination fee. The actual origination fee charged is 0.5% with the current rebate allowance of 1.0% for on time payments. The student will receive net loan proceeds of approximately 99.5% of the loan amount.

Students enrolled at least half-time in a degree-seeking program, regardless of federal financial need, may borrow up to $5,500 for the first year of undergraduate study, $6,500 for the second year, and $7,500 for subsequent years of undergraduate study in an unsubsidized Federal Direct Loan, less the amount of any subsidized Federal Direct Loan awarded to the student. The interest rate is fixed at 6.8%. Interest begins to accrue immediately from the date of disbursment. The interest accrued during in-school and deferment periods may be paid or capitalized. The same origination fee is charged for the subsidized and unsubsidized Federal Direct Loans.

If a dependent student's parent is denied eligibility for borrowing funds through the Federal PLUS Loan program, then the student may borrow up to an additional $6,000 per year for the first and second years of undergraduate study (0-56) credits and up to an additional $7,000 per year for subsequent years of undergraduate study through the unsubsidized Federal Direct Stafford Loan program.

Independent students may borrow up to an additional $6,000 per year for the first and second years of undergraduate study (0-56 credits) and up to an additional $7,000 per year for subsequent years of undergraduate study through the unsubsidized Federal Direct Stafford Loan program.

Graduate students may borrow up to $20,500 per grade level in an unsubsidized Federal Direct Loan less the amount of any subsidized Federal Direct Loan awarded to the studnet. The interest rate is fixed at 6.8%.

Annual and aggregate loan limits for Federal Direct Stafford Loans:

Additional information regarding Federal Direct Loans is available from the Department of Education at http://www.ed.gov/DirectLoan or by calling 800-848-0979 or contact the Office of Student Financial at Goucher College.

Federal regulations require all Federal Direct Loan borrowers to complete loan exit counseling before leaving an institution. The exit counseling reminds students of their rights and responsibilities as borrowers entering the repayment phase. Exit counseling information and the required Borrower's Information Form and the Borrower's Rights and Responsibilities Form may be accessed at http://www.ed.gov/DirectLoan.

Federal Direct PLUS Loan and GRAD PLUS

The federally sponsored PLUS loan is a low-interest student loan for graduate level students and the parents of dependent undergraduate students, who are attending at least half-time. The interest rate is a fixed 7.9%. There is a 2.5% origination fee (which is a net of a 1.5% up-front rebate that assumes 12 on-time monthly payments) deducted from the proceeds of the loan. Loan funds are disbursed directly to Goucher in equal amounts over each term of enrollment for the academic year. The maximum amount that can be borrowed is the cost of education less any other forms of financial aid.

Parent PLUS Loan

The borrower can be the biological or adoptive parent (or, in some cases, the stepparent) and must be a U.S. citizen or permanent resident. Repayment begins 60 days after the loan is fully disbursed, and extends up to 10 years. Goucher requires that a valid FAFSA is on file prior to our certification of a PLUS loan. If a parent is denied a Federal PLUS loan due to credit reasons, the parent may appeal the denial with the Federal Direct Loan Origination Center or reapply with a credit-worthy co-borrower. The Federal Direct Loan Origination Center can be reached at (800)-557-7394.

Parents can choose to defer payments on a PLUS loan until 6 months after the date the student ceases to be enrolled at least half-time. The interest that accrues on the loan while it is in deferment can either be paid by the parent borrower monthly or quarterly, or can be capitalized quarterly. To request a deferment, call the Federal Direct Loan Servicing Center at (800)-848-0979. Deferments will not be approved until after the first loan disbursment has been made.

A new online PLUS Loan Master Promissory Note (MPN) must be completed by the parent. The PLUS Loan MPN can be completed at www.dlenote.ed.gov. Parent borrowers do not need to complete a Federal Entrance Interview.  This is a two step process for first time borrowers.  Complete both the PLUS MPN at www.dlenote.ed.gov and a Goucher PLUS loan request form available here.  In the future only the Goucher PLUS loan loan request would be needed. 

Graduate PLUS Loan

Unlike other federal loans to student borrowers, the Grad PLUS loan requires credit approval by the lender. Students have up to 25 years to repay the Grad PLUS loan. The Grad PLUS loan can be consolidated with federal Stafford and Perkins loans upon graduation.

Grad PLUS loans do not have a grace period. Repayment begins 60 days after the loan has been fully disbursed for the academic year; however, you can postpone repayment while you are enrolled in school by completing an in-school deferment form and mailing it into the Federal Direct Loan Servicing Center.

All borrowers must complete a new online PLUS Loan Master Promissory Note (MPN) and a Federal Entrance Interview. The PLUS Loan MPN can be completed at www.dlenote.ed.gov. The Federal Entrance Interview can be completed at https://www.dl.ed.gov/borrower/CounselingSessions.do?cmd=initializeContext. Graduate students who are borrowing both Stafford and Grad PLUS loans can do combined entrance counseling.

Interest Rates for Federal Loans 2009-2010

The Department of Education recently announced the 2009-2010 FFELP interest rates.  Effective July 1, 2009 through June 30, 2010, the interest rates on new FFELP fixed rate loans will be:

• 5.60% for undergraduate subsidized Federal Stafford loans (6.8% once in repayment)
• 6.80% for undergraduate Federal unsubsidized, graduate Federal subsidized and graduate Federal unsubsidized Stafford loans,
• 8.5% for Federal PLUS  (Parent Loan for Undergraduate Students) and Federal GRAD PLUS

Interest Rates for Federal Loans 2008-2009

6.00% for undergraduate subsidized Federal Stafford loans;

6.80% for graduate Federal subsidized Stafford loans;

6.80% for undergraduate and graduate unsubsidized Federal Stafford loans; and

8.50% for Federal PLUS loans

July 2009 Resources for Student Loan Borrowers

• Federal loan Income Based Repayment Plan 
• Student Loan Borrower Assistance
• Credit Counseling Services

Federal Family Educational Loan Program (FFELP)

This program is being discontinued at Goucher College beginning spring 2010 and replaced by the William D. Ford Direct Loan program.  Application procedures are listed at the top of this page. 

All First-Time Federal Stafford Loan Borrowers

You are required to do the following:

• Accept your Federal Stafford Award online via FASTS or by signing your Award Letter.  
• Conduct A Federal Stafford Loan Entrance Interview
• Apply for a Federal Stafford Loan
• Electronically Sign the Master Promissory Note

Federal Loan Entrance Interviews

All new student borrowers at Goucher College must complete a loan entrance interview. A new borrower at Goucher College includes students who have never borrowed a Federal Stafford, GradPLUS, or Perkins loan before as well as students who may have borrowed at another college prior to attending Goucher College. A scheduled loan session generally takes place during New Student Orientation. However, an easy and fun way to complete this requirement is to visit the following website:  Conduct a Federal Stafford Loan Entrance Interview

Apply for a Federal Stafford Loan

Federal Stafford Loan Master Promissory Note

The Federal Stafford Loan Master Promissory Note (MPN) is a multi-year promissory note, which allows the student, in most cases, to complete only one promissory note for the duration of his or her enrollment. Subsequent academic years will only require the student to accept, reduce, or reject their Federal Stafford Loan each year by accepting or declining the award on the financial aid award using the Financial Aid Student Tracking System (FASTS).

How to Apply for the Federal Stafford Loan Online

Before you begin, gather the following information.

• Your legal name as it appears on your social security card.
• Your social security number.
• Your complete address information, including your telephone number and email address.
• The names, addresses, telephone numbers and email address for two personal references.  One reference can be your parent or guardian.

You will now proceed to the ELM Resources loan website.

From the gray tabs select the application loan type you will be completing, in this case, the Federal Stafford loan.  The choices listed are Federal Stafford, Federal PLUS, Grad PLUS, or private alternative loan.

As a first-time borrower, please review the lenders listed and their borrower benefits and customer service information.

Once you've made your decision, select the Apply Now for the lender of your choice.

You will now be directed to the lender's website.  Follow the instructions on applying for a Federal Stafford loan.  You will prompted for either the state where you reside or the college you will be attending.

Read the lender disclosure information thoroughly before electronically signing or mailing your Federal Stafford loan master promissory note application.

You will now be asked to select the method of signing the application.

• If you choose to electronically sign the Federal Stafford loan master promissory note, you may be asked for your FAFSA pin or to select a pin.
• If you choose to sign using the pinless signature method, your computer must be compatible with the lender's website; however, if you select the pinless eSignature, and your computer is not compatible, you can sign and mail the document to our office.
• Printing the master promissory note to sign and forward via postal mail.  You also have the option of printing a copy of the borrower's rights and responsibilities statement for your records.

Complete the Federal Stafford Loan Entrance Counseling, Federal GradPLUS Loan Entrance  Counseling, or Federal Perkins Loan Entrance Counseling whichever pertains to your particular financial aid award.

Funds will not disburse to the student's tuition account until all required paperwork has been completed.

Returning students may accept, reduce, or reject their Federal Stafford Loan each year by signing or declining the award on the financial aid award using the Financial Aid Student Tracking System (FASTS) and should only complete a new Federal Stafford loan master promissory note if their lender has suspended the processing of Stafford loans or they are requesting a change in lender. 

How to Apply for the Federal PLUS or GradPLUS Loan Online

Similar to the Federal Stafford Loan Master Promissory Note, the Federal PLUS Loan (MPN) is also a multi-year promissory note, which allows the parent or graduate student to complete only one promissory note for the duration of his or her student's enrollment.  Each year the graduate student or parent will be required to obtain a preapproval their lender.  Please read the information above on how to apply for a Federal Stafford loan.  instead of selecting the Federal Stafford loan tab, you will select the PLUS tab: Apply for a Federal PLUS loan or Grad PLUS tab: Apply for a Grad PLUS loan

How to Apply for a Private Educational Loan

We suggest completing a Free Application for Federal Student Aid (FAFSA) and considering the Federal Stafford or Federal PLUS before applying for this type of loan.  

As an additional resource for assistance before applying for a private education loan visit the Maryland Student Loan Marketplace.  It is the site for the Maryland Independent College and University Association (MICUA).  MICUA administers collaborative efforts to support campus leaders and promote access, affordability, and accountability.

NEW --The Federal Reserve and Department of Education have recently implemented new rules and regulations that impact students borrowers who use private educational loans.  All private lenders to whom the regulations apply must be in compliance no later than February 14, 2010.  For more information, read the Private Loan Application information. As part of the process borrowers will be asked to complete a  Private Education Loan Applicant Certification. Contact the financial aid office if you need assistance completing this form.

Preferred Lenders

This list is provided solely as a guide to assist families in selecting a Federal Stafford or Federal PLUS lender partner for their student loan needs. Goucher College will continue to process loans from any lender submitted by the family. Please note that the selected lenders were chosen by students, faculty, and staff as part of a focus group process. Each was evaluated on product, customer service, and value added services. The selected lenders did not provide any financial or other incentive to the College, the Office of Student Financial Aid, or any financial aid employees in order to be included on this list. As always, we encourage families to use the links and compare the various products, in order to make informed financial aid decisions.

Some Points to Remember 

• Please borrow wisely.
• Your Award Notification lists the maximum amount you are eligible to borrow from each loan program.
• Please borrow only what is needed to cover your educational and living expenses for this academic year.
• If you choose to borrow less than you are offered, you will be eligible to request the remaining funds later in the semester.
• Requests for additional loans should be submitted at least 30 days before the last day of classes. Set a realistic budget and stick to it.
• Exhaust all alternatives before borrowing.
• Only borrow what you really need.
• Understand the features and benefits of your loan.
• Stay in touch with your lender and the Office of Student Financial Aid.
• Avoid interest accrual on unsubsidized loans.
• Keep a log of whom you talk to about your loan.
• Keep records of all correspondence with your lender.
• Contact your lender about payment options if you can't make a payment.
• Borrow for the year, not the semester.
• PLUS loan borrowers should determine the annual amount needed and remember that your lender will charge a 4% fee before disbursing funds. 
• A credit preapproval for the PLUS loan annual requested amount is required.
• GradPLUS borrowers will also need to complete Federal loan entrance counseling.
• Learn to control and manage your debt.  The Department of Treasury has helpful information http://www.controlyourcredit.gov/

Federal National Student Loan Data System (NSLDS)

Student receiving a Federal Stafford, PLUS, Grad PLUS or Perkins loan while attending Goucher may access their information at any time using the NSLDS and the Free Application for Federal Student Aid personal identification number.  This information includes the type of loan, amount, status of student loan and lender information.