Loan Programs

Stafford and PLUS Loans

General Disclosures:

  • All loan programs will be disbursed in 2 equal installments during the term(s) for which the student is enrolled.  Proceeds are transmitted to the Student Accounts and disbursements are made approximately each week for loans that are eligible for disbursement.
  • Students and parents may access the Repayment Estimator online for estimates/samples of monthly repayment amounts.
  • Repayment information, including deferment, forbearance, and consolidation information is located online on the Federal Student Aid website.
  • In compliance with HEOA 485b, students and parents of students who borrow Title IV Federal loans should be aware that the loan will be submitted to the National Student Loan Data System (NSLDS), and will be accessible by any guaranty agencies, lenders and schools that are determined to be authorized users of the data system.


Loan Information and Repayment

Code of Conduct for Title IV Loans

Stafford (Student) Loans

Stafford Loans (Subsidized and Unsubsidized) are available to students. The interest rate on loans as of July 1, 2015 will be 4.29% fixed for Subsidized and Unsubsidized Loans. Repayment begins 6 months after the student ceases half-time enrollment. A Master Promissory Note (MPN) and Entrance Counseling session are required before loans will be processed for first time Stafford Loan borrowers.

Stafford Loan Terms and Conditions (As designated on the Master Promissory Note)

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 FSA ID to complete the MPN. This is the FSA ID used to complete the Free Application for Federal Student Aid (FAFSA). To request a new FSA ID students can go online to https://fsaid.ed.gov/npas/index.htm
  2. Complete the Direct Stafford Loan Entrance Counseling online.


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 received a Federal Direct or FFELP Stafford Loan, you MUST complete Stafford Loan Exit Counseling.  Exit counseling should be completed online at www.studentloans.gov.  Students may use the NSLDS website at www.nslds.ed.gov/nslds_SA/ to view their individual Federal (Perkins, Stafford, and PLUS) Loan data at any time using their FSA ID.

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Repayment Plan Options

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 for 2015-2016 is currently 6.84% fixed for PLUS Loans and repayment begins 60 days after the final disbursement of the academic year.  Parents also have the option of deferring their PLUS Loan payments while their student is enrolled at least half-time status.  Parents may contact Common Originations and Disbursements (COD) at 1 (800) 557-7394.

Terms and Conditions of the PLUS Loan (A designated on the Master Promissory Note)

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 (PDF) 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 FSA ID to complete the MPN. This is the FSA ID used to complete the Free Application for Federal Student Aid (FAFSA). To request a new FSA ID parents can go online to https://fsaid.ed.gov/npas/index.htm
  3. Parents who are DENIED for a PLUS Loan have multiple options.  Parents may wish to contact COD at 1 (800) 557-7394 to appeal the credit decision or to learn about applying with an endorser.  For students whose parents are denied for PLUS Loans, additional Unsubsidized Stafford Loan proceeds are available.  The maximum amount of Unsubsidized Stafford Loan a student may receive is $4000 for freshmen and sophomores and $5000 for junior and senior level.  These loans will automatically be processed on the student's behalf if the PLUS Loan is denied and students who wish to reduce or cancel the Unsubsidized Stafford Loan should notify the Financial Aid Office in writing.
  4. Students are notified of the amounts of loans processed in several ways:  Letter to the Parent, Letter to the Student, Disclosure Statement from COD, Loan Receipts when funds are disbursed, Award Letter etc.


Perkins Loan


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 exit counseling.  Students will need to complete the Perkins Loan Exit Counseling Test (PDF) and pass at 70% or better.  Students should review the following document (PDF) detailing information regarding Perkins Loans prior to completing the exit materials.  Students will also receive a Perkins Loan Disclosure Statement to sign and return to the Financial Aid Office to complete the Exit Counseling Process.  

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.  It is the responsibility of the student to research potential lender partners as Ferrum College cannot make those recommendations to students.  Students should review and research several higher education lenders and review their loan products and services thoroughly before making a decision on a loan product. The Financial Aid Office will certify alternative loans of the student's choice, however, no loan applications will be processed until all requested documents have been received by the Financial Aid Office.  Ferrum College does not assume any liability for alternative loan products, lender services or information contained on the lender websites.