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Preferred Lender Arrangements

Loan Programs - Academic Year 2010 - 2011

Code of Conduct/Preferred Lender Policy

Stafford, PLUS, and Perkins Loans

Effective Spring 2010, Ferrum College will be moving to the William D. Ford Direct Loan Program
ALL STUDENTS OR PARENTS WHO BORROWED FROM THE FEDERAL FAMILY EDUCATION LOAN PROGRAM (FFELP) WITH A PARTICULAR LENDER PARTNER SHOULD COMPLETE A NEW FEDERAL DIRECT STAFFORD OR FEDERAL DIRECT PLUS LOAN MASTER PROMISSORY NOTE FOR THE 2010-2011 ACADEMIC YEAR. PARENTS SHOULD ALSO COMPLETE A PLUS LOAN REQUEST FORM TO DETERMINE ELIGIBILITY FOR THE PLUS LOAN PROGRAM.

All new Stafford and/or PLUS Loan borrowers will need to complete the following:

Stafford (Student) Loans

Stafford Loans (Subsidized and Unsubsidized) are available to students. The interest rate on loans as of July 1, 2010 will be 4.5% fixed for Subsidized Loans and 6.8% fixed for Unsubsidized Loans. Repayment begins 6 months after the student ceases half-time enrollment. A Master Promissory Note and Entrance Counseling session are required before loans will be processed.

To apply for the Stafford Loan, students MUST complete the following:

  1. Complete the Direct Stafford Loan Master Promissory Note which is available online at www.StudentLoans.gov You will need your Personal Identification Number (PIN) to complete the MPN. This is the same PIN used to complete the Free Application for Federal Student Aid (FAFSA). To request a new or duplicate PIN students can go online to www.pin.ed.gov.
  2. Complete the Direct Stafford Loan Entrance Counseling.

For those students leaving the college:
Students who are graduating, withdrawing, or not planning to return to the college MUST also complete Stafford Loan Exit Counseling.  For those students who left the school prior to May 2010 and received a Stafford Loan from a particular lender (i.e. Sallie Mae, SunTrust, EdAmerica, Chase, etc.), you must complete Stafford Loan Exit Counseling.

For those students beginning in January 2010 who received a Federal Direct Stafford Loan, you MUST complete Stafford Loan Exit Counseling.


PLUS (Parent) Loans

PLUS Loans are for parents of undergraduate students who wish to borrow to help cover educational costs. A credit check is required for all PLUS Loans. The interest rate is currently 7.9% fixed for PLUS Loans and repayment begins 60 days after the final disbursement of the academic year.

To Apply for the Parent (PLUS Loan), Parents MUST complete the following:

  1. Parent must complete the PLUS Loan Request Form either by paper or online at www.StudentLoans.gov. Paper applications may be mailed, faxed, or scanned and emailed to the Financial Aid Office. Please click HERE for an application or visit www.StudentLoans.gov.
  2. Parents must also complete the Direct PLUS Loan Master Promissory Note which is available online at the above web address.  Parents will need their Personal Identification Number (PIN) to complete the MPN. This is the same PIN used to complete the Free Application for Federal Student Aid (FAFSA). To request a new or duplicate PIN parents can go online to www.pin.ed.gov.

Perkins Loan

These loans are for students with high need. Eligibility will be determined by the school based on funds available and the student will be notified of their eligibility on their award letter. The interest rate is 5% fixed on Perkins Loans and repayment begins 9 months after the student ceases half-time enrollment.  Not all students will qualify for the Perkins Loan program.  Students are also advised to read the Perkins Loan Addendum for information regarding the Perkins Loan Program and Promissory Note.  Remember that these must be mailed back to the Financial Aid Office at P.O. Box 1000, Ferrum ,VA 24088 with an original signature.  Copies or faxes will not be accepted. 

Perkins Loan Addendum

To apply for the Perkins Loan, students MUST complete the following:                  

  1. Students must complete the Perkins Loan Master Promissory Note and return the note with an original signature to the Financial Aid Office.
  2. Students must complete Perkins Loan Entrance Counseling.

For those students who are leaving the college:

Students who have received a Perkins Loan while enrolled at Ferrum College and who will graduate, have withdrawn, or do not plan to return are required to complete Perkins Loan Exit Counseling.   Students will also receive a Perkins Loan Disclosure Statement to sign and return to the Financial Aid Office to complete the Exit Counseling Process.  Remember that transcripts will be held until all exit counseling information is completed and received by the Financial Aid Office.


Alternative/Private Loans

Alternative Loans are offered by private lending institutions and are not guaranteed by the federal government. These funds are available to students who may not be eligible for federal financial aid or who may need to bridge the gap between the actual cost of education and their federal financial aid.

The Financial Aid Office advises students to exhaust all federal options first before seeking alternative loan options.

Alternative/Private Loan Information  

No loans will be processed until all requested documents (taxes, worksheets, counseling, promissory Notes, etc) are completed in full.


More Information

If you would like additional information, contact the Financial Aid Office by calling 1-800-868-9797 or by emailing us at finaid@ferrum.edu.