Stafford and PLUS Loans
- 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:
- 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
- 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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I GRAD VIDEO: Loan Repayment Strategies
I GRAD VIDEO: How to Access your Loan Information on NSLDS
I GRAD VIDEO: What Happens when you Default
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)
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:
- 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. For a Paper application, please see our Forms and Downloads page or apply
online at www.Studentloans.gov.
- 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
- 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.
- 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.
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 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.