Applying for a Loan

LOAN PROCESSING INFORMATION FOR THE 2015-2016 ACADEMIC YEAR
 

In order to help families cover part of the cost of attending Barnard in 2015-2016, educational loans are available.

Federal Direct Stafford Student Loan, 2015-2016

Federal Direct Parent Loan for Undergraduate Students (PLUS), 2015-2016

Federal Direct Stafford Loan Procedures 2015-2016

All schools participate in the Federal Direct Stafford Loan Program. This Program is administered by Barnard College which works with the U.S. Department of Education to offer this loan. The student borrows directly from the federal government and has a single contact--the Direct Loan Servicing Center--for everything related to the repayment of your loans. Detailed information regarding the Program can be found on the U.S. Department of Education's web site. Federal Direct Stafford Loans are available to students who are enrolled at least half-time and are U.S. citizens or permanent residents.

The Direct Loan Program offers the following types of student loans:

Subsidized: for students with demonstrated financial need, as determined by federal regulations. The interest subsidy offered during the six-month grace period on federal subsidized loans will be eliminated for loans offered after July 1, 2012.  Students will be responsible for the interest accrued during that grace period.

Unsubsidized:  not based on financial need and interest is charged once the loan is disbursed.  Interest will accrue on this loan during the time a student is in school as well as during grace and deferment periods.

Federal Direct Stafford Loan Limits (Undergraduate, Dependent Student)

  Maximum Stafford Additional Unsubsidized
1st year $3,500 $2,000
2nd year $4,500 $2,000
3rd year $5,500 $2,000
4th year $5,500 $2,000

If a parent is denied a PLUS Loan, a dependent student is then eligible for an additional Federal Direct Unsubsidized Loan, up to $4,000 for first-year and sophomores and $5,000 for juniors and seniors.

Federal Direct Stafford Loan Application Procedures

1. Complete the Federal Direct Stafford Student Loan Request formif you wish to apply for a Federal Direct Stafford Loan and you are not receiving Barnard College grant aid.  Recipients of Barnard College grant aid indicate acceptance of the loan awarded on the Grant/Job/Loan Agreement form via myBarnard.

2. Complete the Free Application for Federal Student Aid (FAFSA), if you have not already done so for 2015-2016. Barnard's Federal School Code is 002708.

3. Complete Entrance Counseling online. This helps you to understand your responsibilities regarding your loan and is required before the first disbursement of your loan. If you have borrowed a Stafford loan before, you do not need to do another Entrance Counseling session. Check your financial aid portal to determine if your Entrance Interview was received.

  • Go to: www.studentloans.gov  (You now need an FSA ID instead of a PIN to log in.  To create or edit an FSA ID, click here.  If you need assistance, call 1-800-557-7394.)
  • Click on Entrance Counseling.
  • Click on Complete Entrance Counseling and follow the steps.
  • The Financial Aid Office receives the results electronically.

4. Complete the Master Promissory Note (MPN) online. This is a legal document in which you promise to repay your loan(s) and any accrued interest and fees to the Department of Education. If you borrowed a Federal Direct Stafford Loan in the past and completed an MPN, you do not need to do another MPN. Check your financial aid portal to determine if your MPN was received.

  • Go to: www.studentloans.gov  (You now need an FSA ID instead of a PIN to log in.  To create or edit an FSA ID, click here.  If you need assistance, call 1-800-557-7394.)
  • Click on Complete Master Promissory Note
  • Click on Subsidized/Unsubsidized and follow the steps and submit the MPN.
  • The Financial Aid Office receives the results electronically.

5. After you complete the FAFSA, if you were selected for verification, the Financial Aid Office will send you the appropriate form to complete.

6. Submit 2014 federal tax returns and all 2014 W-2 forms for you and your parents to the Financial Aid Office if you have not already done so.

Federal Direct Stafford Loan Interest Rates and Fees

 
  Subsidized and Unsubsidized
Interest Rate
Effective for loans first disbursed on or after July 1, 2015 and prior to July 1, 2016:
Fixed Interest Rate:  4.29%
 
Loan Origination Fee

For loans where the first disbursement is made on or after July 1, 2015 and before October 1, 2015:
Origination Fee: 1.073%
Net Fee of 1.073% is deducted from the amount borrowed.

For loans where the first disbursement is made on or after October 1, 2015 and before October 1, 2016:
Origination Fee:  1.068%
Net Fee of 1.068% is deducted from the amount borrowed. 

Interest Rate Reduction Interest rate reduction: You might be able to get a 0.25% rate discount as a repayment incentive for automatic payments when you use the electronic debit account (EDA) option to make payments on your loan.
  Click here for calculator.

Disbursement of Loans: Your loan is for a full academic year and a disbursement will be made at the beginning of each term.

Repayment of Loans: When you graduate, drop below half-time, or withdraw from Barnard College, you will receive a six-month grace period for your loans. Once your grace period ends, you must begin repaying your loan.

You may choose to pay interest on your Direct Unsubsidized loan while you are in school. If you choose not to pay the interest while you're in school, it will be added to the unpaid principal amount of your loan, called capitalization.

Click here to review the Direct Loan Repayment plans.

Federal Direct Parent Loan for Undergraduate Students (PLUS) - 2015-2016

Barnard College participates in the Federal Direct PLUS Loan Program. The Program is administered by Barnard College which works with the U.S. Department of Education to offer this loan. Detailed information regarding the Program can be found on the U.S. Department of Education's web site and on the Federal Direct Loan PLUS Fact Sheet.

Parents can apply for a Federal PLUS loan to cover their parental contribution. Many families find PLUS an alternative to using lifetime savings and investments for educational expenses. Parents can borrow to cover educational costs for dependent undergraduate students who are enrolled at least half-time.

Loan Limits, Interest Rate, and Fees

Loan Limits You may borrow the full cost of education minus any other aid the student receives.
Interest Rate Fixed interest rate effective for loans first disbursed on or after July 1, 2015 and prior to July 1, 2016:  6.84%
Loan Origination Fee

For loans where the first disbursement is made on or after July 1, 2015 and before October 1, 2015:
Origination Fee:  4.292%
Net Fee of 4.292% on the loan principal is deducted from each disbursement.  Fees are deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.

For loans where the first disbursement is made on or after October 1, 2015 and before October 1, 2016:
Origination Fee:  4.272%
Net Fee of 4.272% on the loan principal is deducted from each disbursement.  Fees are deducted before you receive any loan money, so the loan amount you actually receive will be less than the amount you have to repay.

Sample Parent Loan (if first disbursement is made on or after July 1, 2015 and before October 1, 2015)

Requested Loan Amount  for the academic year 2015-2016 = $10,000:
$10,000 X 4.292% = $429 (loan origination fee)
$10,000 (requested amount) - $429 (loan origination fee) = $9,571 (amount is split between the Fall 2015 term and the Spring 2016 term)

Steps to Apply:

1. Parent submits a 2015-2016 Federal Direct PLUS Loan Request form. Complete this form instead of completing the online application form.

2.  Complete the Free Application for Federal Student Aid (FAFSA), if you have not already done so for 2015-2016. Barnard's Federal School Code is 002708.

3. The Financial Aid Office will submit the information provided on the PLUS Loan Request form to the U.S. Department of Education for approval.

4. Parent completes the Master Promissory Note (MPN) online if the parent is borrowing a Direct PLUS for the first time for this student.

  • Go to: www.studentloans.gov   (You now need an FSA ID instead of a PIN to log in.  To create or edit an FSA ID, click here.  If you need assistance, call 1-800-557-7394.  Parents must be logged in with their own FSA ID.)
  • Click on Complete Master Promissory Note
  • Click on Parent PLUS and follow the steps to complete and submit the MPN. The borrower information must match the information that was submitted on the PLUS Loan Request form. The PLUS MPN is valid and may be used to process subsequent Federal Direct PLUS Loans for up to 10 years after the original PLUS MPN is signed.

5. Barnard College must receive an approval notice from the U.S. Department of Education before credit for a pending PLUS Loan can be applied to the student's account. Loans for the full academic year will be disbursed directly to Barnard in two equal installments, half for each semester.

Repayment of Loan

1. You might be able to get a 0.25% rate discount as a repayment incentive for automatic payments when you use the electronic debit account (EDA) option to make payments on your loan.

2. Interest accrues after the first disbursement.

3. First payment is due 60 days after the second disbursement, unless eligible for deferment.

4. Repayment period is normally 10 years (standard plan), however extended and graduated plans are also available. Click here to review Repayment Plans.

5. Click here to review deferment and forbearance information.

Options if Denied:

1. Work with the Department of Education to request a review of the credit check. There may be inaccurate information on the applicant's credit report. The parent may appeal the denial with the Direct Loan Origination Center at 800-557-7394.

2. Obtain an endorser signature. A Direct PLUS borrower with adverse credit history may still receive a Direct PLUS Loan if he/she obtains an endorser who does not have an adverse credit history. The endorser is responsible for repaying the Direct PLUS loan if the primary borrower does not.

The entire process can be completed online at www.studentloans.gov. Click on Endorse a PLUS Loan and allow 20 minutes to complete the process in a single session.

3. If a parent is denied, the student is then eligible for an additional Federal Direct Unsubsidized Loan, up to $4,000 for first-year and sophomores and $5,000 for juniors and seniors. The student completes the Federal Direct Stafford Student Loan Request form,which is located on Barnard's financial aid website. A completed FAFSA must also be on file at Barnard in order to receive the Federal Direct Unsubsidized Loan. Students need to request these funds in writing after receiving notification of the PLUS denial. PLUS loan denials do not carry over to the following year; the PLUS loan must be applied for each year.

Additional Information and Resources:

Websites for Borrowers:

Call Centers for Borrowers:

  • Direct Loan Origination Center: 800-557-7394 (to appeal denial of PLUS loan)
  • Direct Loan Consolidation Center: 800-557-7392
  • Federal Student Aid Information Center: 800-433-3243
  • Loan holder Services Center: 888-799-2474
  • Student Loan Support Center: 800-557-7394