Loans are a form of Financial Aid that must be repaid. Students who borrow money are required
by Federal Law to complete Entrance and Exit counseling. During these sessions, the rights
and responsibilities for borrowers and repayment and deferment options will be explained. Loans
may not be credited to a student’s account until he/she has completed an entrance counseling session
or a “hold” will be placed on his/her account. A student who is graduating or withdrawing
from the college must complete an exit counseling session or a “hold” will be placed on his/her
Federal Perkins Loan Program
This is a federally funded program administered by the college to full and part-time students based on demonstrated need. The interest rate is 5% and repayment begins 9 months after a student graduates, withdraws or drops below half-time enrollment.
Federal Direct Loans
Manor College participates in the Federal Direct Loan Program. Loans are either subsidized or unsubsidized.
A Subsidized Loan is awarded on the basis of fi nancial need with the federal government paying the interest on the loan until the end of the grace period. The grace period is a six-month period after a student graduates, leaves school or ceases half-time enrollment.
An Unsubsidized Loan is not based on need. Interest payments begin when the loan is disbursed. A student either makes quarterly interest payments or defers the interest and capitalizes it. Capitalization means the interest will be added to the principal and increases the amount to be repaid.
A student must be enrolled at least half-time (6 credits) to qualify for a Direct Loan. A full-time freshman (0-29 credits) may borrow up to $3,500 per year. Full-time sophomores (30+ credits) may borrow up to $4,500 per year. Direct loans for part-time students are calculated on a pro-rated basis. The interest rate from July 1, 2010 will be 6.00%. The interest rate will never exceed 8.25%.
Federal Direct Loan Program
This federally funded loan is made and guaranteed by the Federal Department of Education. A student must complete a Master Promissory Note online at www.studentloans.gov.
Federal Direct Parent Loan for Undergraduate Students (PLUS)
This federally funded loan is made to a credit-worthy parent. The parent may borrow an amount up to the cost of attendance less any other fi nancial aid. A parent must obtain a Master Promissory Note application online at www.studentloan.gov. Repayment on PLUS loan begins 60 days after the 2nd disbursement is made to the College. If a parent is denied for a PLUS loan, a dependent student is then eligible for an additional unsubsidized loan for up to $4,000 per year.
Private (Alternative) Loans for Undergraduate Students
These non-federally funded loans are given to students to help fund the cost of attendance beyond all federal and state loan and grant help. Private loans are credit-based loans. Each loan’s Web site should be reviewed for interest rates and repayment options before choosing a loan. A list of private loan lenders is available at the Financial Aid office.
Drug convictions in regards to your Federal Financial Aid:
Your eligibility might be suspended if the offense occurred while you were receiving federal student aid (grants, loans, or work-study). When you complete the FAFSA, you will be asked whether you had a drug conviction for an offense that occurred while you were receiving federal student aid. If the answer is yes, you will be provided a worksheet to help you determine whether your conviction affects your eligibility for federal student aid.
If your eligibility for federal student aid has been suspended due to a drug conviction, you can regain eligibility early by successfully completing an approved drug rehabilitation program or by passing two unannounced drug tests administered by an approved drug rehabilitation program. If you regain eligibility during the award year, notify your financial aid office immediately so you can get any aid you’re eligible for.
If you are convicted of a drug-related offense after you submit the FAFSA, you might lose eligibility for federal student aid, and you might be liable for returning any financial aid you received during a period of ineligibility.
Find more information on this topic in a fact sheet called "FAFSA Facts for Students with Drug-related Convictions."