LOANS

Federal Direct student loans available beginning 2017-2018

Indebtedness can be a  significant burden upon graduation , especially for those preparing to enter full-time vocational ministry. Please know that for 2016-2017 Moody Bible Institute does not participate in Federal Loan Programs, but starting in October 2016, students will be able to apply for federal loans to use for fall 2017. We still urge students to secure adequate funding through payment options other than loans. (Click here  for aid options specific to each campus.)

If a loan becomes necessary, we believe students should have as much information as possible to make individual loan choices that are in their best interest. Many different types of student loans exist. Some of these loans are federal loans, meaning the rules and regulations are set by the federal government. The current rate through June 30 is 4.29%, however each year by July 1 a new rate is determined. This rate may be the same, higher, or lower than the prior year rate. The rate does cap at 6.8%.

Remember to borrow only what you need. A loan must be paid back.

The Federal Direct Loan application process works as follows:

  • Complete the FAFSA
  • Complete entrance counseling online at https://studentloans.gov
  • Complete the Master Promissory (MPN) at https://studentloans.gov
  • We originate your loan once you have completed entrance counseling and your MPN has been linked

Federal Direct Loans for Undergraduate Students

Federal Direct Loans are borrowed money that must be repaid. These low-interest loans are available to eligible dependent and independent undergraduate students enrolled for at least six credits per semester. You may qualify for either:

  • subsidized loan (based on financial need), where the federal government pays the interest while you are in school or in a period of deferment; or
  • An unsubsidized loan, where you pay the interest after the loan is disbursed until you can repay the loan in full.

Stafford Loan limits are as follows:  

If you are a dependent, undergraduate student, your loan limits for the academic year are:

 

Subsidized Limit

      Additional Unsubsidized Limit

Freshman

$3,500

$2,000

Sophomore

$4,500

$2,000

Junior & Senior

$5,500

$2,000

If you are an independent, undergraduate student or if you are a dependent, undergraduate student and your parent is not approved for a PLUS Loan, your loan limits for the academic year are:

 

Subsidized Limit

      Additional Unsubsidized Limit

Freshman

$3,500

$6,000

Sophomore

$4,500

$6,000

Junior & Senior

$5,500

$7,000

 

Parent Loan for Undergraduate Students (PLUS)

The Federal Direct PLUS Loan for parents is a government-backed loan with a fixed interest rate. Eligible parents may borrow up to the full annual cost of their child's education, minus other financial aid received. The PLUS Loan may be deferred, including interest, or may be prepaid at anytime, without any penalty. PLUS Loan credit requirements are typically more lenient than consumer credit requirements. In general, any resolved credit problems are disregarded. To apply for a Federal Direct PLUS Loan, please complete and submit a PLUS loan credit check and a Direct PLUS loan Master Promissory Note (MPN) at https://studentloans.gov

If your parent is denied a PLUS Loan, you may be eligible to borrow additional unsubsidized Federal Direct Stafford Loan funds.

For detailed instructions on applying for the Federal Direct Parent PLUS loan, click here .

Federal Direct Loans for Graduate Students

Federal Direct Unsubsidized Loans are borrowed money that must be repaid. These low-interest loans are available to eligible graduate students enrolled for at least 4.5 credits per semester. Graduate students may annually borrow up to $20,500 or cost of attendance, whichever is lower.

Direct Graduate PLUS Loans

The Federal Direct PLUS Loan for graduate and professional students (Grad PLUS Loan) can help you cover the full cost of your education, minus other aid received. The Grad PLUS Loan offers flexible credit requirements, a fixed interest rate set by the U.S. government and an easy application process. To apply for a Direct PLUS loan you must complete a PLUS credit check and a PLUS loan Master Promissory Note (MPN) at https://studentloans.gov/

Alternative or Private Loans

Alternative or Private Loans are not federal student loans. They are consumer loans made available by lenders to assist college students when federal loans are not enough to cover their college expenses. The credit requirements vary by individual lender and most often require a creditworthy co-borrower. Students should always consider taking Federal Direct student loans first before considering any private student loans  If you plan to borrower a Private loan, please be aware that you may need to complete a Self-Certification Form for your lender before your loan will be disbursed.

Criteria – Moody Bible Institute Office of Financial Aid seeks lenders that offer favorable loan products as determined through an annual review of the following:

  1. Loan Terms (e.g., interest rates, fees charged, and front or back end borrower benefits)
  2. Customer Service (e.g., timeliness of processing and disbursement, ease of application, web-based services)
  3. The availability of borrower benefits (e.g., rate reduction and/or consolidation options)
  4. Default Prevention (e.g., standards to help students maintain good account standing)
  5. Products available (e.g. loans for parents or others to take out on behalf of the students)

 

Lenders in Alphabetical Order

Website

Commerce  (partners with Sallie Mae)

commercebank.com/yourfuture

Discover 

DiscoverStudentLoans.com

Sallie Mae

SallieMae.com

Wells Fargo

wellsfargo.com/collegeready

    Additional Information Disclosures for Loan Products
  Wells Fargo Collegiate® loan
  Wells Fargo GraduateSM loan
  Wells Fargo Private ConsolidationSM loan
  Wells Fargo Student Loan for Parents

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